Federated Farmers says it is ''unacceptable'' that some farmers in Waitaki could be facing a rates rise of up to 25%, when urban dwellers are expecting a rise of just 3.5%.
After a two-day hearing session to listen to verbal submissions on the Waitaki District Council draft annual plan, which finished on Wednesday, Federated Farmers and one of the district's major employers have both called for a review of the draft plan's proposed rural land-based rating system.
Federated Farmers senior policy adviser David Cooper said the overall ''headline'' rates proposed in the draft plan differed ''significantly'' from the forecast rates increases for a large proportion of farmers, many of whom were faced with rises of between 10% and 25%.
''This imbalance appears due to two factors: the impact of district-wide re-evaluations and the relative increase in district-wide land and capital value-based rates.''
That meant many farmers would have to pay more than $2000 a year extra, Mr Cooper said. He called for the council to introduce a remissions policy for farmers faced with a rates rise of more than 7%.
There was ''no way'' farmers, who already paid a higher level of rates than the average ratepayer, could budget for such rises, he said.
''We are concerned that, given the significant effects of the district-wide re-evaluations, the headline rates increases of 3.5% may lead ratepayers into a false sense of security in regards to their forthcoming rates bill.
''A ratepayer expecting a rates increase of 3.5%, but subject to an actual rates increase of 25%, may, quite rightly, feel that the summary document and the draft plan do not provide sufficient information on some very significant rating impacts.''
Both ''immediate relief'', in the form of a remissions policy, and a long-term review of the council's revenue and funding policy were needed to ensure rates were spread more equally across the district, Mr Cooper said.
Farmers' concerns were also shared by Oamaru's biggest employer, Alliance Group Pukeuri Ltd, which also called for a review of land-based rates.
Company accountant Bruce McCrone said the meat plant would be faced with a 12% rate rise because the value of land had increased.
However, the company last year made a loss of $50 million and ''would not be able to survive'' if all its costs rose by more than 20%.
''If you are going to have a 3.5% rise then it should apply to all ratepayers. Rate changes should be allocated equally across all rateable properties.''
He would prefer to see a capital-based rate system put in place, because the plant did not use its land for agricultural purposes, Mr McCrone said.
