“It is a bit like assessing someone’s wealth on the basis of the car they drive,” she said in a forward to Federated Farmers Platform on the 2019 local government elections.
The federation makes no apology for focusing heavily on the cost of local government and how that cost is recovered.
Rates bills are among the biggest farmers face; often exceeding $20,000 or even $50,000 a year.
Local Government New Zealand said the country’s 78 councils have income and spending exceeding $10 billion a year and assets worth $140b.
They employ 30,000 full-time equivalents, represent 11% of all public spending and are governed by 1600 elected councillors, board members and local trustees.
“Farmers need level-headed councillors who prioritise needs over the nice-to-haves, who respect the considerable contributions from ratepayers and who work hard toward an equitable rating system that is affordable for all ratepayers,” Milne said.
The quality of environmental regulation can make or break a farm business.
Farmers want councils to adopt practical and common-sense ways to regulate, she said.
Councils’ spending has tripled since 2000 and annual rate revenue has also trebled, to $6b.
Debt has gone up fivefold during that time to $15b.
While the Consumer Price Index has gone up an accumulated 50%, local government rates and charges have risen 170%.
“Federated Farmers believes that councils should do what their ratepayers have to do – make do with the money they have and drive costs out rather than constantly asking for more.
“This includes setting priorities rather than trying to be all things to all people and focusing on continuous improvement and excellence in service delivery.”
Federated Farmers also pleaded with prospective councillors to consider using all the mechanisms in a reasonable rating system: targeted rates, uniform charges, differentials, rate caps and remission policies.
“The distribution of benefits and access to services can be a big factor in a carefully designed rating system that doesn’t rely simply on property value.
“This is a big challenge and what is most wanted of local councillors from the farming community,” she said.
Remissions could be applied for QE11 covenanted land, for farms with multiple titles to avoid many charges for the same thing and after natural disasters and adverse events.
