Too early to be talking rating relief – LGNZ

But dairy farmers facing a low payout year are no different from any other sector of the community that might have challenges, says Local Government New Zealand vice-president Brendan Duffy.

“I imagine the retail sector will find it pretty tough going in rural and provincial New Zealand as well,” Duffy told Rural News.

“If, as has always been the case, an individual has a particular challenge that requires a chat, then you will find councils… are fair and reasonable and happy to have that chat.

“I don’t think any council will have a carte blanche policy of a rates rebate, but there are 78 local authorities and they all have variations on the same theme of supporting people in their community.”

Duffy says he has not yet heard of a council being approached by dairy farmers for rates relief. “It is very early days; one would have assumed that last year when the payout was great they would have been salting a little away for the inevitable. It is very early days for councils to be getting approaches seeking rates support.

“The only area I’m aware of -- as a consequence of the recent floods -- is Manawatu-Wanganui. Traumatic storm conditions [are giving them] a hammering far greater than the drop in the dairy payout.”

Such occasions of rates support to farmers have been pretty isolated.

“There is a variety of options, as always. Every area will have a different perspective. Some will find their area is dramatically more impacted than others so they will have a different stance.

“It is their call what decisions they make. It may depend on what will happen with the El Nino next year and the devastation some farmers will face on top of a poor dairy payout. That will be much tougher for some councils than others where there will be no El Nino impact and the farmers are just impacted by the dairy payout.”

For any commercial industry – including dairy – if there is a particular challenge the council can consider any number of options. 

“A postponement, a rebate, a deferment, weekly payment… They can halve the rate for a year if they choose. [But if] they do that who would pick up the difference? The urban people would… so then you have inevitable discussion on what’s fair and reasonable. There are enormous challenges when it comes to it.”

Duffy says the next question is, why should councils be the first cab off the rank? 

“What about the power supply companies, they could be concessionary and offer support? We already know Fonterra is [offering interest-free loans]. So we have to be very cautious. But if you have a problem contact your council – absolutely.”

Pay as you can

The Waikato Regional Council says there are various options for paying rates when money is short.

“We recognise that dairy farmers are facing a significant downturn in the milk payout,” says committee chairwoman Jane Hennebry. “This means some will be struggling to meet costs.”

Hennebry says the council allows ratepayers to pay off rates by direct debits, and there are other options to help make payments easier.

“We encourage anyone facing difficulties to contact [us] to discuss their options.”