THE Victorian Farmers Federation is disappointed councils have ‘flouted’ Victoria’s rate cap.
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Horsham Rural City Council and Buloke Shire Council were among six municipalities in the state who were successful in increasing their rates for 2016-17 above the state government’s 2.5 per cent cap.
Horsham Rural City rates will increase to 3.5 per cent, while Buloke rates will increase to 3.05 per cent.
Federation president Peter Tuohey said the outcome was frustrating.
“At a time when so many farmers are struggling financially, it’s disappointing to see the Essential Services Commission lifting the 2.5 per cent Fair Go rates cap,” he said.
“We’ve got grain growers who didn’t harvest a crop this past season, dairy farmers who’ve been lumbered with price cuts and massive debts, as well as orchardists who still haven’t recovered from hail-damaged crops.
“Most farmers can’t even afford rate rises.
“So why has the commission allowed councils to slug rural communities with rises above the 2.5 per cent cap?”
Horsham Rural City Mayor Heather Phillips said Horsham’s cap increase was necessary to help narrow a growing gap between the renewal spending needed to maintain council assets, and available asset funding.
She said apart from land, road and related infrastructure comprised 84 per cent of council’s total asset base.
“Our municipality has some of the most reactive soil substrates in the state, and this is a significant factor in reducing the life of our roads,” she said.
“Larger vehicles and more frequent road use as farming practices change and evolve are also contributing to the decline of our roads.”
Cr Phillips said council had similar challenges with ageing building assets.
“These assets are deteriorating and many of our renewal works are long overdue,” she said.
“It is our social responsibility to manage these assets effectively in the best long-term interests of the community.”
McKenzie Creek farmer Neville McIntyre this month called for Horsham council to review its farm rates differential, which is set at 20 per cent for 2016-17.
He said farmers paid an unfair amount of rates compared with other sectors such as commercial and residential groups.
“With the government’s Fair Go rate policy, and with rate capping, we would expect that every sector should pay the same rate increase,” he said.
“One thing that really sticks in our mind still is 2006, when hundreds of Horsham houses received a discount in their rates. But most farmers had an increase, and we see what’s happening this year as very similar.”