Rural rate hike unfairly targets all cockies, says councillor
A proposal to hit Waikato farmers in the pocket with a new targeted rate is unfair to most cockies, says Waikato regional councillor Noel Smith.
The regional council wants to target properties of 20 or more hectares with an extra charge of $73.37 to $376 per annum over three years to cover compliance costs.
But Smith says that’s unfair, because as well as targeting all dairy farmers the proposal also captures sheep and beef farmers and horticulturists.
Smith understood that of the 4000 dairy farms in Waikato only 400 needed close monitoring because of their activities.
“As usual the majority are being targeted when the 400 errant properties are the ones that should be targeted.
"My position is that it is inequitable to say everyone over 20 ha should have to pay the newly named Primary Industry Compliance Rate.
“That means 10,860 properties would have to pay the additional costs including those involved in horticulture, sheep and beef.“
In a newsletter to his Waikato district constituents he wrote:
“I have not yet supported this change and would like to get feedback on this proposal from our communities.”
“It is a broad brush approach to a specific issue and I don’t think my colleagues have really understood what is being asked. “If it is 400 farmers that are the problem, 10,860 are being asked to pay for something they do not contribute towards.”
Smith urged the public to read and comment on the consultation document.
“I would appreciate as many ratepayers as possible having their say so that I know what they want and I can support them when it comes to voting on the issues.”
Currently the cost of permitted activity monitoring programmes is funded by a targeted rate on all 24,609 properties 2 ha or greater.
The Waikato Regional Plan has over 70 permitted activity rules including several higher priority rules relating to effluent and sediment discharges which are subject to proactive monitoring.
The permitted activity monitoring rate is being renamed the primary industries compliance rate.
The monitoring was funded solely by rural properties but the proposal will make it 20% funded by the general rate.
The council’s resource use director, Brent Sinclair, said the proposal will mean a targeted rate reduction of $73.37 a year for about 13,800 properties between two and 20 ha, an increase of approximately $111 per annum for 10,860 properties 20ha or greater and an increase in the general rate of $441,000 (equivalent to a 0.3% increase).
“Historically these activities have been fully funded by the general rate. The council has determined that it is more equitable to have more funding from specific properties to which the regulations relate as opposed to a new cost,” Sinclair said.
The changes were proposed because the vast majority of the work was being done on properties over 20 hectares.
“It is not about creating a new service rather shifting where the costs to provide the service will go,” Sinclair said.
“The service delivered remains the same but because the properties between 2 and 20 hectares will no longer pay it there will be roughly 10,000 landowners instead of 24,000 landowners who would share those costs. So their cost will increase. wthe councillors recommended that there was a more equitable funding regime moving forward.
Sinclair said another element in play is the significant work that needs to be done in relation to farm plan obligations, including both new national and regional rules.
“Those obligations also apply to properties over 20 hectares.”
Federated Farmers Waikato president Keith Holmes echoed Smith’s concerns.
“What is of huge concern to us is that the percentage of the dollar taken for targeted rates actually used for the work has been diminishing.
“Too much of the money is being used in the WRC charge system rather than doing the work needed,” Holmes said.
“The systems have become top heavy. Federated Farmers are saying that overheads need to be peeled back, it needs to get a lot more clinical and rate use efficient.”