Because it is a targeted rate the money must be spent on roads and it is, but the money is not spent on the basis of where it came from, but rather, it is spent on the basis of where it is needed within the network. There are rapidly increasing costs to maintain and repair roads and the demand is insatiable.
It would be remiss of me not to mention that we do receive a cash subsidy from Waka Kotahi to assist with maintaining roads. The subsidy, known as the Financial Assistance Rate (FAR) varies from council to council and is currently set at 61 per cent for this District, which is much higher now than the 51 per cent it once was.
Let's profile our typical metal road. Most of Stratford's metal roads are located in the eastern reaches of the district. Typically, they are in the hill country, which is also typical plantation forestry country, they often provide access for only a small number of property owners and they are quite remote. Many of these roads were originally built for horse and cart and follow the contour of the land, so are often twisty and very narrow.
Over many, many years, minor improvements and metal dressing has occurred, making the roads usable and "fit for purpose", as long as the purpose is livestock farming as we've known it. This type of farming generates only small numbers of vehicles, mainly Utes and similar types using the road each day. Fertiliser and stock trucks use these same roads too, but much more sporadically.
This changes dramatically when forestry is being harvested. Logging activity requires large, heavy machinery to be carted in and out on a regular basis. Add to that worker and service vehicles that use the road daily and of course, the logging trucks, usually with trailer.
The sheer weight they carry when loaded is huge, gross weights can exceed 50 tonnes each trip and with multiple movements a day they pound the road. This intense use sometimes compounded by wet weather, is just too much for the road to handle. Soft spots soon become potholes, potholes hold water and get softer or larger, throw in some mud and the road quickly becomes almost impassable and very expensive to repair.
The decision on whether to transport logs was once influenced heavily by weather conditions, but nowadays, with the need to keep expensive heavy equipment working, the major influences are the price and demand for logs. That's the commercial reality the foresters face.
As a council, we're saying the ongoing cost of repairs has become such a problem, we question why all ratepayers should equally bear the cost burden, when it's clear that the damage is largely attributable to logging activity.
This is why the proposed new differential road rate has been included in the draft Annual Plan that is now out for consultation. If adopted, the rate will draw an additional $100,000 per year from designated forestry properties (29 in total) and reduce the cost to all other ratepayers by the same amount.
While the differential does not generate any additional funding for council, it does place the cost of these repairs at the foot of those that cause the problem.
