Sharechat Logo

Local bodies sting utility firms for network rates

By Rob Hosking

Friday 14th April 2000

Text too small?
Telecom has started paying rates on its cables in the street for the first time.

Telcos, electricity and gas companies will all face huge local body rate hikes as the government valuation body, Quotable Valuation, devises a way for local councils to charge utility companies rates for their networks.

One local authority, Auckland City Council, has already imposed rates charges on businesses, including Telecom and the government-owned electricity transmission firm Transpower, for non-building structures such as wires, ducts, manholes, cables and poles.

In the past, rates have not been imposed on such structures, mainly because historically the bodies that owned them were either council- or government-owned agencies.

But with many such entities either fully privatised or being run as state-owned enterprises and with businesses such as Clear Communications, Telstra Saturn, and TransAlta building their own networks, local councils see utility firms as prime targets for further levies.

"Some form of rating system is yet to be imposed but it looks like it will go ahead at some point," Telstra Saturn business development manager Sean Wynne said.

Telecom said it was already paying network rates to the Auckland City Council.

"While we'd obviously like to minimise our costs, we're not taking issue with the levy," Telecom spokesman Angus Barclay said.

He would not say how much Telecom was paying or when it expected to pay similar rates elsewhere.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

PaySauce Quarterly Market Update - Dec 2024
CHI - FY24 Results Date and Audio Conference Details
AIA - December 2024 Monthly traffic update
January 15th Morning Report
PF - Details of Interim Results Webcast
Scott Secures NZ$18 million in Global Contracts for Protein
January 14th Morning Report
AFT - NEW YEAR LETTER TO INVESTORS
TruScreen Invited to Present WHO AI Collaboration Meeting
January 13th Morning Report