Sunday, 08 February 2015 00:00

Local body rating system needs rethink

Written by 
Federated Farmers local government spokesperson Katie Milne Federated Farmers local government spokesperson Katie Milne

It is time to end reliance on the current property-value based rating system says Federated Farmers.

 Speaking recently regarding a Local Government New Zealand discussion paper, Federated Farmers local government spokesperson Katie Milne says continuing to set rates based on the value of a property is a crude and simplistic tool which is unsustainable.

"Farmers find themselves paying for services they don't or can't use. In effect, the current rating system means farmers are subsidising people who live in towns," Milne says.

"Local government in many cases is suffering a decline in its population from which to draw rates. This problem then gets passed onto farmers who find rates becoming an increasingly spiralling proportion of their farm costs."

But Milne says the discussion paper is timely in its pointing to more equitable and efficient rating systems.

"We like the attention given to expanding the existing revenue system, such as in user charges. This is clearly a fairer and more flexible way of at least part funding local government activities."

"There should also be a look at institutions which are rates exempt, yet which use council services."

"Local bodies need to get a more robust way of deciding both their rating and spending. The Long Term Plan process for councils helps, but is not the full answer," she adds.

Milne argues that there needs to be a close look at how central government imposes new rate burdens on local government.

"It's the easiest thing in the world for a government to keep taxes down by shoving the cost down the chain to local councils. But if they are going to do that then they need to help by paying for it out of income tax and GST income."

More like this

Editorial: Having a rural voice

OPINION: The past few weeks have been tough on farms across the North Island: floods and storms have caused damage and disruption to families and businesses.

Featured

NZ Dairy Expo Gains Momentum in Matamata

The third edition of the NZ Dairy Expo, held in mid-February in Matamata, has shown that the KISS principle (keep it simple stupid) was getting a positive response from exhibitors and visitors alike.

National

Remediation NZ Fined $71k Over Compost Site Odours

Remediation NZ (RNZ) has been fined more than $71,000 for discharging offensive odours described by neighbours as smelling like ‘faecal and pig effluent’ from its compositing site near Uruti in North Taranaki. 

Machinery & Products

» Latest Print Issues Online

The Hound

Penny Pinching

OPINION: A mate of yours truly reckons rural Manawatu families are the latest to suffer under what he calls the…

New Order

OPINION: If old Winston Peters thinks building trade relations with new nations, such as India, isn't a necessary investment in…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter