The Weekly Advertiser Horsham

Politician­s fire up over Ararat rates

- BY DEAN LAWSON

An Ararat rates debate has attracted a heated response from Member for Lowan Emma Kealy who revealed she was exploring ways to help the regional city’s district farmers avoid a potentiall­y crippling rise in costs.

Ms Kealy, whose electorate includes Ararat’s south and west farming districts, said it was unacceptab­le to expect farmers, who owned less than a quarter of rateable properties in the municipali­ty, to take financial responsibi­lity for more than half of the city’s rates.

“It’s just crazy. We’re talking about a sector that not only relies on land to make a living, but is also exposed to year-to-year climatic and environmen­tal variables that can determine success or failure, let alone having to worry about human manipulati­on,” she said.

Ms Kealy was scathing of Ararat Rural City councillor­s who voted to adopt a uniform rate across the municipali­ty by scrapping a farm rate differenti­al.

“This is surely a case of councillor­s not understand­ing the potential impact this might have on communitie­s outside Ararat,” she said.

“Agricultur­e is a primary regional economic driver for Ararat, which means this is a big-picture issue, not only for Ararat, but a region, and its viability into the future,” she said.

“If farmers don’t have money to spend because it has all gone to rates, it means that money isn’t being spent anywhere else to stimulate the district economy.

“It really comes across as a short-sighted council cash grab based on exploiting good farming conditions, when everyone knows another bad season might just be around the corner,” she said.

“It would be a terrible outcome if there were farmers who had to sell up because rates had broken their business.

“It’s just not fair to go from a rates differenti­al of 55 percent to 100 percent in one hit when there is no change to service delivery in the region.”

Ms Kealy said she had already been in touch with the Office of the Victorian Ombudsman, which was interested in receiving submission­s to see if the Ararat decision-making process was flawed, if there were any conflicts of interest or whether the rate rise for farmers was simply unjustifia­ble. She added it might also be an issue for the Local Government Investigat­ion and Compliance Inspectora­te, which plays a key role in monitoring governance in Victorian councils.

“We have to also remember that an additional hit for local landowners comes in Labor’s new policy to have annual property revaluatio­ns,” she said.

“Additional increases in property values will further compound rate-rise pain.”

Ramsay

Liberal Member for Western Victoria Simon Ramsay said he believed potential scrapping of farm differenti­al rating in Ararat could be disastrous and a test case for Victoria.

Mr Ramsay, among observers at a Lake Bolac meeting about the issue last week, said he would closely watch how it unfolded.

He said the 55 percent rate differenti­al had been in place for many years for good reason.

“Farms represent just 24 percent of rateable properties in the shire, but already pay 38 percent of the rates. Under this proposal, they will pay 55 percent of the rate income,” he said.

The Ararat council has, as part of its draft rating strategy, voted to ask farmers to pay 46 percent more for rates next year – at a value of $2,432,665 – while all other ratepayers will pay less.

Mr Ramsay said the Ararat council faced challenges because it was ‘administra­tively top-heavy’ and home to a low socio-economic population with an average income of about $38,000.

“The Andrews government’s introducti­on of rate capping is forcing councils, such as Ararat, to re-think how they do business,” he said. “This is another example of the impact of government policy and intrusion.”

Mr Ramsay is a member of a State Parliament Environmen­t, Natural Resources and Regional Developmen­t Committee working on an Inquiry into the Sustainabi­lity and Operationa­l Challenges of Victoria’s Rural and Regional Councils.

“Through this budget proposal, the council is effectivel­y shining the state’s spotlight on itself,” he said.

“It will be questioned about why these changes are proposed and what the long-term ramificati­ons are.

“I suspect from the committee’s point of view, Ararat’s change raises questions about how to establish a longer-term sustainabl­e funding model for small rural and regional councils.

“As it stands – this proposal appears unfair and inequitabl­e to the farming community. Imagine the financial stress on farmers in times of drought, flood, fire or commodity upheaval?”

 ??  ?? CONCERNS: Farmers and guests gather at Lake Bolac football clubrooms to discuss the impact of an Ararat Rural City Council plan to scrap a farm rate differenti­al in favour of a uniform rate for the municipali­ty. The decision has sparked an angry...
CONCERNS: Farmers and guests gather at Lake Bolac football clubrooms to discuss the impact of an Ararat Rural City Council plan to scrap a farm rate differenti­al in favour of a uniform rate for the municipali­ty. The decision has sparked an angry...

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