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ARARAT’S plan to abolish differential rates for farmers will be investigated by the state government.
Local Government Minister Natalie Hutchins announced on Friday that the government had appointed a Commission of Inquiry to consider the efficiency and effectiveness of the Rural City of Ararat’s rating strategy.
Hundreds of people have attended meetings to protest the strategy, which they claim would increase their rates bill significantly.
Ms Hutchins’ office said the decision came after a request for government intervention was made by the Victorian Farmers Federation and, importantly, the Mayor of Ararat.
“The draft budget proposes to bring to an end all differential rates in the city, increasing the total rates paid by farms to over 50 per cent,” Ms Hutchins’ statement said.
“While the Rural City of Ararat, like all councils, is entitled to make its own decision on differential rates, changes this extreme deserve more careful consideration.”
“As a result, the government will appoint a Commission of Inquiry under the Local Government Act.”
Initially rates strategy change was sought so the total paid by homeowners could be reduced.
Instead, some of Ararat’s biggest businesses, including Aldi, Woolworths, and Target are set to receive huge reductions in their rates.
Ararat mayor Paul Hooper said it showed the government had issues with council’s draft rates strategy.
“It can hardly been seen as a vote of confidence by the state government in what we are doing,” he said.
“As far as I am concerned their decision is the umpire's call – then we get on with it.
“In effect a lot of the farming properties, particularly in the southern part, will receive rate increases in the order of 45 per cent.”
Farmers currently pay a 55 per cent rate variation, homeowners pay 100 per cent and commercial and industrial properties pay 160 and 130 per cent each respectively.
Council is proposing to introduce a uniform rate, meaning farms would be increased to 100 per cent, but both commercial and industrial properties would be reduced.
There would be no change for homeowners.
Victorian Farmers Federation president David Jochinke said he welcomed an inquiry into the Ararat Rural City rates “debacle”.
“A Commission of Inquiry into the Rural City of Ararat’s rating strategy is welcomed by farmers in the shire,” he said.
“Farmers are facing the prospect of being slugged with a rate hike of over 50 per cent which is having a devastating effect on the local community.
“The Victorian Farmers Federation released the results of a community survey earlier today showing the mental and physical stress this issue is causing ratepayers in the Ararat area.
“Ararat council has failed to provide adequate consultation with ratepayers or consideration to the fairness and equity of their proposed rating strategy and the Commission of Inquiry will have no trouble identifying these flaws.”
Ararat Rural City councillors are due to vote on approving the rating strategy at a meeting on Tuesday night.
Ararat Rural City Council has yet to make its own statement on the inquiry, which was announced after the close of business on Friday.
“The Commissioners will be announced next week and will be required to report on the consultative process carried out to develop the budget and rating strategy, and the administrative capacity of the City, by August 1,” Ms Hutchins’ statement said.
“They will also consult the ratepayers of Ararat on the Council’s budget and rating strategy, and make recommendations to the Councillors and the Government.”
The government’s timeline would see the inquiry report released after the ratings strategy could potentially be approved and enacted, if the vote goes ahead on Tuesday.