THE state government will investigate Ararat’s plan to abolish differential rates for farmers.
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Local Government Minister Natalie Hutchins announced on Friday that the government had appointed a Commission of Inquiry to consider the efficiency and effectiveness of Ararat council’s rating strategy.
Hundreds of people have attended meetings to protest the strategy, which they say would increase their rates bill by 50 per cent.
Ms Hutchins’ office said the decision came after the Victorian Farmers Federation and, importantly, the Mayor of Ararat made a request for government intervention.
“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,” a statement from Ms Hutchins’ office 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.”
Ararat councillors are due to vote on approving the rating strategy at a meeting on Tuesday night.
The 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.
“(They will) 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 at Tuesday’s meeting.