Otago stadium shows how councils farm farmers

The Otago Regional Stadium, for which contracts were signed last week, is being held up by Federated Farmers as a prime example of how farmers are being farmed by councils for their rates.

“As Dunedin gets a new $198 million stadium, their rural cousins are being spear tackled to pay for it,” says Mike Lord, Federated Farmers Taieri spokesperson.

“Some farmers as far away as Middlemarch, 80 kilometres from Dunedin, are being expected to pay more than $1,200 extra a year towards this new stadium. That doesn’t sound like the construction cost is being fairly allocated across the entire community.

“With the addition of Otago Regional Council (ORC) rates, that same farmers’ contribution towards the stadium will be pushed up to more than $1,500 each year. General rates for the city council will add thousands and in the case of some unfortunate farmers, tens of thousands of dollars more.

“Striking a targeted flat rate on residential and farm land for a project like the stadium is not complicated and it’s not an administration nightmare, it is the fairest solution.

“This is all hard to swallow when the average urban resident will be forking out less than $100 a year for this stadium yet they will benefit more. Given this is an urban amenity, shouldn’t urban residents pay $1,500 dollars and farmers just $100?”

“With the current proposal, there’s no way a farmer in Hyde benefits 15 times more from the stadium than someone with a house in Roslyn. After all they can only take up one seat each.

“That’s why the proposal to rate on capital value is unacceptable.

“ORC have adopted a 50 percent targeted rate based on distance from Dunedin. While imperfect, it’s a big improvement over Dunedin City Council’s dragnet.

“How do farmers feel when we hear that Dunedin City Council wants to cut the rates burden on the city’s commercial businesses over time, because of the current financial crisis?

“People and businesses like hotels and cafes will pay more under a capital value rate but they will also enjoy direct economic benefit. If it’s for tourism let those operators pay for the lion’s share.

“The shame is that this scenario is being repeated all over New Zealand. Farmers are being hammered on their rates accounts despite the fact we’re trying to stay in business and put food on the table.

“That’s why Federated Farmers is ‘going upstairs’ on this one. The days of farming farmers for rates are over,” Mr Lord concluded.

Federated Farmers is currently submitting on more than 60 Long Term Council Community Plans and is appalled by the cavalier way in which some rural communities are being expected to cross subsidise urban initiatives. The Federation is collating this data and working up proposals for the Hon Rodney Hide MP, Minister of Local Government, for an overhaul of the rating system.