Horowhenua Council Draft Long Term Plan 2024 - 2034

Submitting on the Long-term Plans of district and regional councils forms an important part of advocating for farmers – it is an opportunity to influence local rating policies and contain and reduce rating impacts on farmland.

Property value rates can be among the highest overheads for a farm business. Farmers pay more for council services than other residents. 

The Federation advocates for farmers at both national and local levels to bring equity to this situation. We seek reform of local government funding through legislative change and submit and advocate to councils locally for better rating systems.

Summary:

• We are concerned about debt levels - as 2012-22 LTP had previously forecast debt to be lower than it currently is, and debt is now forecast to grow to 250% before reducing.
• Significant rate increases in next 4 years of rates will adversely affect rural ratepayers as most farms will experience well above the average 17.4% increase, especially in a time when farmers have faced higher increases of on farm inflation compared to urban ratepayers and very low returns in the sheep industry. Farmer income for 2024 is not expected to increase.
• We accept that monetary inflation may mean the Council has to increase rates. And our expectation is that this would be indexed to NZ’s forecast CPI inflation rate (which is 4.7% in January 2024), and certainly be no higher than this, and lower if possible. 
• We are highly concerned that the Reserve Bank will resume raising the Official Cash Rate if New Zealanders do not curb their spending, which will have adverse repercussions for everyone.