Federated Farmers steps up fight over rates burden

Federated Farmers is stepping up its campaign against the rates burden faced by farmers.

A federation analysis of more than 80 local authorities showed their proposed rate increases averaged 7-8 per cent over the next three years.

Vice-president Don Nicolson said the figures highlighted the need for an urgent change to the way local government is funded. The study showed that, on a nationwide basis, rates revenue would increase by 7.7 per cent in 2006-07, 8.3 per cent in 2007-08 and 7.4 per cent in 2008-09.

This was in excess of inflation and population growth, and coincided with an economic downturn, said Nicolson.

Councils blamed the rates increases on inflation in the construction sector pushing up infrastructure costs, and central government imposing new responsibilities and additional compliance costs.

"While they have a point, some are also choosing to increase soft spending on largely urban-based social and cultural activities, picking winners in terms of economic development and tourism promotion, and expecting farmers to pick up much of the tab when little or no benefit is received."

Nicolson said Federated Farmers was "fighting back" by making submissions to councils.

"The emphasis in our local advocacy is on containing rates rises and ensuring that the rates burden is shared more fairly with urban ratepayers, who tend to be the main users and beneficiaries of most council activities."

At a national level, the federation wanted a comprehensive review of local government funding and to find lasting alternatives to property-based rates, which it called an "increasingly unsustainable" funding method.