Farm differential to remain at 20 per cent

A ratepayer last week urged Baw Baw Shire Council to increase the rates discount it offers to farmers because of the dairy industry crisis.

Bruce McDonald of Coalville told council it should show support to dairy farmers across the shire and reinstate the 20 per cent farm rate differential for all farm properties.

But, council made no amendment to its differential rating system, maintaining the existing 10 per cent discount for farm properties.

Mr McDonald said in light of current circumstances in the dairy industry, council should increase its farm differential to 20 per cent instead of the “10 per cent that it’s been stuck at since the Glenn Patterson regime.”

“You have an opportunity to show some degree of support to the dairy industry at a time that is being reported as a great crisis.

Mr McDonald said Latrobe City offered farm properties a 20 per cent discount yet Baw Baw, which is more of a rural shire, only offered 10 per cent.

The rating strategy presented to council includes a number of differential rates as a discount or surcharge to the general residential rate.

Farm properties and urban living land each receive a 10 per cent discount; commercial and industrial properties are charged at a 30 per cent higher rate, as is residential development land; and vacant land has a 60 per cent surcharge.

Council previously offered a 20 per cent discount to farmers but this was reduced some years ago when former chief executive officer Glenn Patterson suggested council reduce the farm rate to 10 per cent and invest in rural areas through the rural infrastructure scheme.

Cr Mikaela Power said it was an extremely difficult time for the dairy industry and there were numerous things council needed to do to assist farmers.

“At this stage our rating strategy is a balancing act and we have to balance different needs.

“I am not happy with the vacant land rate and I say that every year,” she said.

Cr Peter Kostos said when the farm rate reduced council at the same time committed to spending money in rural areas.

“We are still spending money in those rural areas.

“To change the farm rate on the basis of the dairy industry would be difficult. Prices rise and fall.

“There are other avenues where council can assist dairy farmers,” he said.

Cr Murray Cook said having money from the farm differential go into rural roads and drains was a thing of the past.

He said council had a very well set out priority list for dealing with rural roads now.

Cr Cook said he disagreed with the 60 per cent surcharge on vacant land. He said it became an imposition and didn’t achieve its aim of encouraging people to sell or develop their properties.

Cr David Balfour said the rural infrastructure program set up when the farm differential was reduced was a $900,000 fund for rural areas.

“Well rest assured with our capital works program will blow that out of the water this year,” he said.