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