The Wairoa District Council recently approved changes to its rating model that included new rates differentials.
The new rating system, which takes effect from July 1, consists of five differentials. Forestry carries the largest weighting at a differential of 4.0, with commercial at 1.6, residential at 1.0, residential properties valued at over $399,999 at 0.8 and rural at 0.7.
Wairoa Mayor Craig Little says forestry’s increased differential reflects community feedback that the sector contributes less than it should towards the social, economic and environmental wellbeing of the district.
He says the new rating model is the result of feedback received from the community through submissions, community meetings and caravan sessions.
“We have struck a balance where we have listened to the community while achieving a future rating system that is simple, affordable and appropriate,” Little said.
Wairoa is not the first rural or provincial council in New Zealand to introduce a rating differential of 4 for forestry, with Waitaki District Council already having that rating level in place.
Waitaki Mayor Gary Kircher says it was introduced after the council had to foot the bill for significant road maintenance after damage done during log harvest.
He says the council was faced with a situation a few years ago where one road in the district was “blasted to bits” by a forestry operation, with the repair bill running to more than $1 million.
The council had to decide how it could capture the cost of repairs and target them where it belonged.
The money generated by the higher Waitaki rate is put aside so when repairs are needed to roads known to be damaged by logging trucks, the council has money available to get them done.
The rate is targeted at land that is predominantly or solely in plantation forestry, so farmers who want to plant trees on small blocks on their properties can do so without worrying about the higher rate.
Kircher says he would not be surprised if other provincial or rural councils with small ratings bases in areas where there are commercial forests consider a similar approach and increase their forestry differential.
Local Government NZ has rural and provincial sector groups, and Kircher says members of those groups who represent councils around the country have discussed the impact of forestry in their areas at recent meetings.
Tararua District Council is also looking at an increased targeted rate on land that’s home to commercial forestry operations, but Mayor Tracey Collis says that work is ongoing “but we’ve been watching this for a while.”
“I’d rather be a fast follower than on the bleeding edge,” she said.
The Tararua council has looked at the approaches taken in the Ruapehu, Wairoa, Waitaki and Gisborne districts and plans to use aerial mapping to gather more information before making any changes.
Collis says it’s important that farmers with blocks of trees on their land are not disadvantaged.
She says the district has the fourth largest roading network in the country but only a small rating base to pay for repairs and maintenance. It receives funding from the NZ Transport Agency (NZTA), but it’s not enough to cover rural roads repair and maintenance.
She says there can be no denying the damage logging trucks cause to rural roads that were not built to take the loads they do during harvest.
“There’s absolute frustration in the rural community when there’s 50 tonne trucks using roads that were not designed for them,” she said.
Forest Owners Association communications manager Don Carson says councils should not be charging land users differing levels of rates based on their perceived ability to pay.
