Farmers tired of being ‘mugs’
Farmers are out of patience with councils that treat them as cash cows, fewer than four per cent of respondents to a Federated Farmers survey believing they get good value for money from their rates.
“It’s local government election year, and those chasing our votes can expect some very pointy questions on why average council rates in New Zealand jumped 79.7 per cent between June 2007 and June 2017, when inflation (CPI) for the same period was only 23.1 per cent,” Federated Farmers president Katie Milne said.
The federation surveyed its members to “get a handle” on farm rates, to help inform its advocacy to the Productivity Commission’s inquiry into local government funding and financing, on Tuesday. By Friday morning it had received 647 responses, 440 of them on the first day.
“I think that speaks volumes about the level of concern about council costs,” Ms Milne said.
“As an ironical nod to the fact that many farmers’ rates bills top $10,000, we said the first 200 respondents would get a Federated Farmers $10K Rates Mug. They were exhausted barely three hours after the survey opened.
“The sad fact is, based on the rising costs, we’re probably going to have to change to $20K Rates Mugs.”
The average rates paid by the 544 respondents who detailed their demand was $26,949, with a median of $21,388. Forty-six paid less than $10,000, and nine paid more than $100,000. The biggest demand was $176,533.
Only 3.7 per cent of respondents agreed that they received good value for their rates, while 87 per cent cited roading as the council activity that mattered most to them, followed by planning and regulation (41.7 per cent), land drainage (23.6 per cent), water and wastewater (23.4 per cent) and governance (23 per cent).
“Federated Farmers recognises the cost pressures on councils, and we’ve said before we’re delighted that the Productivity Commission is now investigating how local authorities might fund infrastructure in the future, as well as looking into regulatory creep and costshifting by central government,” Ms Milne added.
“Bills calculated on the current antiquated system of capital or land value-based rates often have little or no relationship with what a family, a business or a farm actually uses by way of council services.
“We also need people who have a sound understanding of rural and agricultural issues to stand, and get that perspective heard in council chambers.”