the case for local government funding reform the farmer’s perspective
Post on 15-Dec-2015
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The Case for Local Government Funding Reform
The Farmer’s Perspective
Victorian Farmers Federation• The VFF has over 10,000 farmer members• Represents all farming commodities
– Grain, Dairy, Horticulture, Chicken Meat, Pigs, Eggs
• VFF consists of over 200 local branches that meet to discuss local issues and drive advocacy activity of the VFF
• Board of elected and 2 independent skills based directors
• Policy development and advocacy democratically determined through Annual conference
Why are farmers so concern with Local Government Funding?
• There are two main reasons farmers as so interested in local government funding:– Farmers are service users of local government,
with many referencing the need to return to the tradition Three - Rs
– Farmers are high municipal rates payers
Municipal Rates Campaign• VFF Research into Municipal rates
– Survey of farmers found• Average farmer rates Bill is $8500 (with examples of $30k and
$40k)• Average residential Bill is under $1000• 85% of respondent are not satisfied with Council services
– Improved road maintenance would greatly assist in this
• Analysis of Council budgets found:– Farmers pay 50% of all rates assessed on business in rural
and regional Vic, but make up 13% of regional economy– In the past 5 years rates collection has increase by over
35% across regional Victoria
Rates as the symptom…
• Current rate system disadvantages farmers as rate payers– Land is a means of production, not merely where
the business is located
• Rural and Regional Councils do not have a large capacity to raise revenue– Heavily reliant on Gov’t grants and rates for
income
What the VFF is doing• Federal Government
– Funding levels– Funding of local roads
• State Government– Funding $160m 4 years– Ministerial guidance on Differentials
• Local Government– Municipal Charges– Strong differentials for farmers– Are Local Government run as efficiently as
possible?
State Review to Local Government funding
• VFF is conducting a letter writing campaign
• Petition calling for an Inquiry into Rural rating
• First step to the acceptance that something needs to be done
• We want to work with the community to deliver reform to local government
Thank you
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