In a report tabled in parliament on Tuesday, the Environment, Natural Resources and Regional Development Committee made 14 recommendations intended to strengthen rural and regional councils’ financial positions.

The committee found there was a need for a new approach to funding councils and recommended that the rating system should be reviewed to improve its fairness and equity.

The committee also found that rates revenue needed to be supplemented by grants, particularly in small rural councils, and that rates on agriculture land should be calculated differently.

Hindmarsh councillor and Rural Councils Victoria chairman Rob Gersch said it was pleasing to see the state government had acknowledged the concerns of small councils.

“We endorse the report and its findings, but we now need to see some action from the government,” he said.

Cr Gersch said the state government contributed $1 million to funding this inquiry and Rural Councils Victoria made a submission to the committee.

“It’s great to see some acknowledgement of our issues, but now we urgently require action and support, especially in the next state budget,” he said.

Cr Gersch said councils especially needed to see more funding for roads and infrastructure.

Murra Warra farmer and Victorian Farmers Federation president David Jochinke also made submissions to the inquiry.

He told the committee that farmers often received multiple rate notices and a review of how agricultural land was rated was needed.

“Many farmers have landholdings in two if not three or four council areas, so in a lot of areas we are seeing multiple rate notices being put out within the council to the one enterprise,” he said.

Mr Jochinke also told the inquiry that council amalgamations were not the answer to councils’ financial issues.

Committee chairman Josh Bull said there was a certain level of service that all Victorians were entitled to and which were essential to maintain the livability and economic contribution of Victoria’s regional areas.

“It is critical that all levels of government ensure that councils have the means to provide this level of service,” he said.