Farmers question councils' costs

Some councils need to trim their costs, says Federated Farmers' Katie Milne.

Farmers are questioning the local-body priorities and fiscal discipline as rate-takes continue to outstrip cost indexes, Federated Farmers' Katie Milne says.

The local government spokeswoman says analysis by Federated Farmers shows the consumers' price index (CPI) went up 21per cent from 2006-16.

Councils have argued the Local Authority Cost Index prepared by consultants BERL is a fairer measure of cost pressures they face, and that went up 33per cent in the past decade.

Both measures are dwarfed by the average 77per cent hike in rates by 13 city, 54 district and 11 regional councils. New Zealand's population rose by 12per cent in the same period, but Local Government NZ had no figures on how much the rating base grew as a result.

"The ongoing trend of rates to rapidly out-pace inflation is greatly resented by farmers, for whom council bills can be a significant component of their farm costs," Ms Milne said.

Federated Farmers worked hard this year to ensure councils' plans for waterways and other environmental issues were practical, fair and based on science and evidence.

"But that's matched by our submissions and lobbying on council costs, and the tendency of some councils to get carried away with growth plans and 'extras' with not enough recognition of the impact on the ordinary people and businesses footing the bill," she said.

The level of rural concern over council costs could well be the reason why provincial voter turnouts in the October elections, at 49.8per cent, were significantly higher than in metro centres (41.3per cent).

The highest voter turnouts took place in districts such as MacKenzie (64.3), Central Hawke's Bay (62.7), Central Otago (62), Gore (59.4) and Kaikoura (57.2).

While some councils had reined in spending, Ms Milne said Federated Farmers wages an ongoing battle with others about rates burden unfairness, such as when revaluations push up rural property values.

Land and improvement values can have little or no bearing on the property owners' consumption of council services in relation to others.

Yet some councils are reluctant to use tools such as annual charges, differentials and rates remittances to smooth out big rises in the face of factors such as farm incomes taking a severe buffeting.

Other councils put up the rates to fund 'growth initiatives' and tourism but overlook the fact that farmer businesses are also significant employers and drivers of district wealth, and it may be just as pertinent to progress to keep their rates bills down.