Fed Farmers calls for rates remissions

An average district rates rise of 3.1% has been signalled in the Central Otago District Council's annual plan. The council and its community boards will be hearing feedback from the public on its plan from May 23-June 1. Central Otago reporter Lynda van Kempen takes a look at some of the issues highlighted in this year's submissions.

A change in Central Otago rating policy will bump up rates by $3000 or more for some farmers, who should be invited to apply for rates remissions.

That was the view of Federated Farmers senior policy adviser David Cooper, who made a submission to the Central Otago District Council's draft annual plan.

A move away from targeted rating and towards land value-based general rating would have a significant effect on farmers' rates, Mr Cooper said.

"We ask that council proactively contacts any farmers facing an increase over a certain amount (for example rates increases exceeding either 5% or $500), offering them the opportunity to apply for a remission ...''

The draft annual plan gave no idea of the actual rating impact for specific ratepayers, he said.

There were significant changes in rates for all ratepayers, ranging from increases of thousands of dollars for some, to significant reductions for others.

An increased reliance on general rating tools was "a step in the wrong direction'' as rates should target costs to specific ratepayers on the basis of assessed benefit.

He highlighted the impact on farmers in the Manuherikia basin.

Some would have rate increases of $3000 or more, some would have rates decreases and farmers in other parts of the district might have increases in the hundreds of dollars.

The combined rating approach in the Vincent ward has significantly increased rates paid by farmers in that ward, irrespective of whether or not farmers benefited from the particular activities being rated for, Mr Cooper said.

"Some farmers in the district, particularly those in the dairy sector or those relying on dairy support, are facing significant losses this year. An increased rates bill only adds to this further.

"Significant rates increases at such a time are at least poorly received and in extreme circumstances may contribute towards a financial tipping point for some.''

He suggested rates remissions would be appropriate, under the "remission for anomalous and/or iniquitous rates increases'' section of the Long-Term Plan.

He said Federated Farmers backed three projects earmarked for funding in the annual plan - $15,000 towards the Manuherikia Catchment Water Strategy Group's social impact assessment, $20,000 a year for the Central Otago Wilding Conifer Control Group to employ a project manager and $20,000 for a Centre for Space Science Technology, based in Alexandra.

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