Thursday, 15 December 2022 07:55

Editorial: Time to control rates

Written by  Staff Reporters
For farmers, it all boils down to cost fairness; they claim the existing system of property value rates is loaded against agriculture. For farmers, it all boils down to cost fairness; they claim the existing system of property value rates is loaded against agriculture.

OPINION: Local Government rates have always been a bone of contention for farmers.

For farmers, it all boils down to cost fairness; they claim the existing system of property value rates is loaded against agriculture.

As Federated Farmers points out, farmers pay many more times than other residents for council services and infrastructure, even though some of those services aren’t even available to rural residents.

Federated Farmers Rates Report, an annual wrap of the lobby’s work advocating for farmers on council rates and local government policy turned up overall rate increases mostly below 10%, which compared to recent years is in a rather modest range.

Perhaps it being a local election year contributed to some newly found prudence.

However, there were exceptions: Environment Canterbury, which proposed a 24.1% increase for the 2022/23 year managed – under some pressure from ratepayers – to trim that to 16.2%. ECAN has been substantially increasing operating expenditure in recent years, and this is showing up on the bottom line for ratepayers. Westland District Council proposed a 12.5% increase but pruned this back to 6.9%.

Further north a push back on Taupo District Council’s proposed 8.35% increase, with a little bit ultimately taken off and the final number 7.07%. Wairoa was also near the 10% mark, with an average rate increase across the district of 9.1% for 2022.

Now, there’s another review underway of into the future of local government.

The Government says it is focused on prioritising ways to keep a lid on rate rises.

It supports efforts of local governments to engage with local communities in order to get the buy-in needed for any changes.

An independent panel doing the review will now embark on a round of consultation, with the wider local government sector to seek submissions, before producing its final report by June 2023.

For farmers it is a bald and unpalatable fact that in the decade to 2022, local authority rates and fees have gone up an average 56%, against a consumer price index rise of 20%.

For them, and many other businesses and households too, the rates bill is a major, and climbing, cost.

They want robust debate during annual plan and budget rounds about targeted rates and uniform charges.

Farmers believe there are often a much fairer way than general rates of apportioning costs according to benefit derived.

They find the current local government rating system unfair.

More like this

Federated Farmers Welcomes RMA Replacement Passing

Federated Farmers says new legislation replacing the Resource Management Act will cut red tape, unlock investment and help grow New Zealand's export-led economy, after the Planning Bill and Natural Environment Bill passed their third reading in Parliament yesterday.

Arable ROI Crisis: Why Canterbury Farmers Are Moving On

Mid Canterbury Federated Farmers arable chair, Bevan Lill, said Beef + Lamb NZ data indicated that for the last six years, the average arable return on investment was about 0.8% while inflation ran about 4% - so the average arable farm was going backwards at about 3% a year.

Featured

Southland Farmers Face Wet Weather Toll, Support Available

Farmers across parts of Southland and South Otago are continuing to deal with difficult conditions after a prolonged run of wet weather, with pressure building around feed supply, stock management, pasture damage, farm infrastructure and everyday workloads.

How Wearable Tech Powers This 1,850-Cow Dairy Farm

For Canterbury dairy farmers Sian Meijer and Rick Wobben, wearable technology has become one of their most valuable on-farm tools - helping manage 1850 cows across an expansive, high-performing dairy operation while improving efficiency, mating outcomes and day-to-day decision making.

New Dairy Welfare Code Released, Takes Effect 2027

The first major update to the Dairy Cattle Code of Welfare in more than a decade has been released, marking what DairyNZ describes as an important step in ensuring animal welfare standards continue to evolve alongside scientific evidence and on-farm realities.

National

Machinery & Products

» Latest Print Issues Online

Milking It

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter