Editorial: Sensible move
OPINION: The Government's decision to rule out changes to Fringe Benefit Tax (FBT) that would cost every farmer thousands of dollars annually, is sensible.
Feds says over the next two months it will make 68 submissions nationwide. It has prepared a policy guide to help its 24 provinces navigate council plans, with particular focus on rates.
“Our members and farmers pay a lot of money in rates, which can be among their highest overheads,” says Feds president Katie Milne.
She says this year is especially significant as local government faces big challenges on funding infrastructure in response to high population growth, but in some cases decline.
“Farmers are already paying big rates for essential items like local road networks, and are wondering what councils will come up with this time round,” Milne says.
“We want to make sure any new projects are both justified and funded appropriately.”
Milne says Feds has noticed a “disturbing trend” in council long term plans now out for consultation.
“While it’s early days, with a dozen or so long term plans out for consultation, we’re seeing significant rate increases for farmers, such as the 23.5% increase on rural communities proposed by Manawatu District Council and an overall rate increase of 12% for Bay of Plenty Regional Council ratepayers.”
She says Feds is also worried about the cost to local authorities of their activities other than core services, such as tourism promotion and economic development.
