Government needs to heed '10 point' plan

Federated Farmers local government spokesperson Katie Milne says the disastrous dairy payout prices in particular mean farmers want urgent action on local body rates inequities.

"We farmers can't control international prices. Neither can the government. But the government can legislate rates reform. It all helps, and the sooner the better," Milne says.

Federated Farmers in particular want the rates base to be broadened.

"There needs to be a good hard look at landowners who are currently exempt from paying rates. Local bodies need to get more into user pays for services."

However, Milne has reservations about some of the LGNZ plan.

"The idea of 'value uplift' to increase rates in line with increased local government investment is interesting. We would need to see the fine print, but we would have a concern that local government investment in such things as roads may not benefit anyone but the people passing through to somewhere else."

Milne also endorsed the Local Government Minister, Paula Bennett's push for councils to be more efficient and effective and to demonstrate the value of their spending before asking for more money.

"I agree that any changes to funding arrangements should not be a license to grow spending. To me, the key is about what are the most appropriate ways to fund modern local government and how funding of local government should be sending the right messages to central government, councils, and communities. Currently, over-reliance on property value rates fails this test dismally."

"Overall however, LGNZ has produced a refined version of mostly what has been on the table and well considered for some time. It is now up to central government to get on with doing something about it," she says.