Farmers say rates `intolerable'

JONATHAN DOW
Wairoa farmers say they pay the highest rates in the country.
Four hundred farmers pay the Wairoa District Council an average of $6794 in rates each year compared to 1478 of their rural neighbours who pay an average of $517.
The farmers do not receive any extra services. Their rates are higher because they are based on land value.
In a submission on the Wairoa District Council's long-term community plan, Wairoa Federated Farmers chairman Tony East and Ian Blair, ask: "How can this be justified?".
"For no accountable reason farmers pay 1300 percent more than others for the same services," Mr East, who farms at Kotemaori, said.
This had become intolerable, and wais aggravated each time the council needed more money
The Wairoa District Council collects $8.5 million from ratepayers each year.
Charges for water, rubbish, sewage, drainage and the uniform annual general charge of $296 that every ratepayer pays, bring in $3.5 million of the total.
The Federated Farmers submission points out that 400 farmers and foresters pay more than half of the other $5 million to fund roads, parks and reserves, waste management and general services. That was because these rates were based on land values.
What really riles Mr East and Mr Blair is that although they pay more, in many cases they use the services and facilities less.
"Just how do ratepayers, located 50km from recreation facilities, benefit?" they ask.
The fact that 1478 of their rural neighbours pay $517 in rates, which, after allowing for the uniform annual general charge and the waste charge of $91, includes only $130 for property-based charges, is the focus of the farmers' submission.
They have calculated that farmers pay 1300 percent more than other ratepayers.
Even if the council had a 'redistribution of income policy', this was unfair and unsustainable, Messrs East and Blair said.
They propose a solution: Split the "rural 1" category into three categories. One for properties valued over $500,000, another for properties less than this amount, and a third category for residential properties valued less than $50,000.
"Since all rural ratepayers have equal access to the services provided by council, funding from each group should represent their likely use of services and activities," their submission said.
The 1478 rural residential ratepayers would have their rates increased by $500 a year, which could be phased in over five years. This would mean farmers could have their rates reduced from an average of $6794 to $4465.
The submission acknowledges that Wairoa has "more than its share of low-income people".
"However the ongoing sympathy for these people in respect to rating charges is not justified."
They say Work and Income can provide assistance for rates, as will the enhanced Working for Families package.
People over 65 can apply for rate remittance and the Government was about to introduce a $500 rates relief package.