Waimate Rate hike 'extortionate'

Farmers are opposing what they say are "extortionate rural rate increases" proposed by the Waimate District Council.

Indicative rates for the coming financial year show substantial increases for some rural properties, including one which faces an almost $5000 increase on this year's rate of $13,238 and another almost $4000 on the $18,739 paid this year.

That has prompted Federated Farmers' Waimate branch chairman Colin Hurst to call a halt to proposed rating changes, even asking the federation's national office legal adviser whether the council is acting legally.

Mr Hurst said the increases were due to a proposed change in the council's funding policy, the method and formula used to gather rates.

Federated Farmers had been seeking a review of its funding policy and asked to be included as part of that - only to learn about the changes.

Mr Hurst wondered whether the council was handling the change in policy correctly, and said Federated Farmers would be asking for it to be delayed, separated from the long-term plan and subject to separate consultation.

"We don't necessarily disagree; we are arguing about the process," he said.

Mr Hurst had not fared as badly as some other farmers, but was still facing a 10% increase.

"These are very unfair rates hikes targeting people who already have low levels of service," he said.

It was disappointing the council failed to consult Federated Farmers during the funding policy review, especially after being assured in 2010 it wanted farmers' participation. When the federation reminded the council about that last year, there was no reply.

"Only now, when it is virtually finalised, will the federation finally have an opportunity to discuss the new funding policy."

The council's debt was set to increase, a concerning trend.

"This new policy will force farmers to dig even deeper into their pockets to repay debt on the council's plans for more big-ticket items, such as the community centre."

The increases seemed particularly opportunistic as the Government signalled a crackdown on council spending and debt levels.

"These levels of borrowing, spending and rate rises cannot continue," Mr Hurst said.

Waitaki Mayor John Coles could not be contacted for comment.

 

Add a Comment