Rural News 17 January 2017

Page 1

NEWS

MANAGEMENT

AGRIBUSINESS

Cashing in on good rains.

Knocking Scotch thistle on the head. PAGE 22

Apiarists expect to be disrupted for months due to the Kaikoura earthquake last November. PAGE 16

PAGE 5

TO ALL FARMERS, FOR ALL FARMERS JANUARY 17, 2017: ISSUE 622

www.ruralnews.co.nz

Constant rates rises irk PAM TIPA pamelat@ruralnews.co.nz

THE DAYS of New Zealand having an undue reliance on property taxes to fund local government are coming to an end, claims Local Government New Zealand (LGNZ) chief executive Malcolm Alexander. He was answering Federated Farmers’ questioning of the priorities and fiscal discipline of New Zealand’s councils, as rates continue to outstrip cost indexes. Alexander says it is pleasing to see others parties like Federated Farmers and the tourism industry are picking up on the need for more flexible funding tools for rates. This is an issue which no longer can be ignored, he says. The Feds say between 2006 and 2016 there has been 77% hike in rates by the country’s 13 city, 54 district and 11 regional councils.

The New Zealand’s population went up by about 12% during the same period, with the consequent growth in the rating base – but LGNZ has no figures on how much, the Feds say. Analysis by Federated Farmers shows the consumers’ price index (CPI) went up 21% in the same period. Local authorities have argued the Local Authority Cost Index prepared by consultants BERL is a fairer measure of cost pressures on local government and that went up 33% during the past decade. However, Alexander says councils are faced with a range of complex cost drivers which a simplistic comparison

to either the consumer price index or the local government cost index fail to fully take into account. “Neither index is able to estimate the costs of new and emerging challenges and demands facing councils,” he told Rural News. “These include the upfront costs of building infrastructure for future generations as a result of the rapid population growth experienced in a number of areas, the cost of meeting new national standards imposed on councils by central government, such as those concerned with water quality and earthquake strengthening, and the demand for higher service levels

from the public, such as putting in services to manage the growth of freedom camping. Alexander says while property rates will continue to be the cornerstone of local government funding for the foreseeable future, LGNZ has been advocating for more flexible funding tools to meet current and future challenges. “It is pleasing to see other parties like the tourism industry and Federated Farmers are picking this up as an issue that can no longer be ignored.” Feds local government spokesperson Katie Milne says the ongoing trend of rates rising to rapidly out-pace inflation is greatly resented by farmers, for

whom council bills can be a significant component of their farm costs. Some councils get carried away with growth plans and ‘extras’ with not enough recognition of the impact on the ordinary people and businesses footing the bill, Milne says. “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 this year.”

While the sun shines... The best spring and summer weather for years saw High Peak Station, in the hills behind Windwhistle in central Canterbury; bring in a good harvest of summer grass for silage. A team from North Canterbury-based BA Murray agricultural contractors was on the farm last week, the team consisted of a mower, a rake, a harvester and two tractors with 10-tonne trailers, supplemented by two 10-tonne trucks from Rangiora’s Hurley Plant Ltd, to ferry the harvested grass to the farm’s two silage pits. They were expecting to take about six hours, spread over two days, to harvest three big blocks of mainly ryegrass, totalling about 50ha. Station owners, James and Hamish Guild hoped for a yield around four tonnes a hectare. More on page 5. PHOTO NIGEL MALTHUS

KEEPING RURAL GROWING. If you want your business to grow, you need to take a few risks. Luckily FMG is here to help you manage those risks with practical advice and specialised rural insurance that’s right for you. It’s how we’ve been helping rural New Zealand grow for over 100 years. And it’s how we can help you continue to grow in the future. Ask around about us, or better still call us on 0800 366 466.

We’re here for the good of the country. FMG0520RNFPSNF


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