Update on Environment Southland rates process
27 July 2021
A huge thanks to the many of you who have supported us in our efforts to cause a rethink at Environment Southland (ES) over the proposed 20% rates hike.
Following our media efforts highlighting the issues and some of the calls received by Councillors, Environment Southland Chairman Nicol Horrell requested a meeting with the Southland Feds Exec to give Councillors the opportunity to explain the background and reasons for the $3.6 million p.a. General Rate increase.
The public Council meeting to further discuss and ratify the proposed increase will be held at the Invercargill City Council chambers this Friday (30th) at 10am. Unfortunately many of the Southland Feds exec are required at a meeting at Telford which clashes with this Council meeting. We encourage any interested and/or concerned members and supporters to attend and show their support to the Councillors who stand up against this rates hike.
Having heard the call from our members about wanting more transparency about the work we are doing, below are the key points we took from our meeting with the Councillors, held on Monday 26 July:
- Main reason identified by Councillors for increase was loss of cruise ship income which largely funds coastal plan activities while generating very little cost. Despite that lost income, the associated coastal plan activities are non-negotiable, statutory duties of Council and must continue and cost approximately $2.8 million p.a. (includes navigation aids, harbour master, marine biosecurity).
- Other identified key costs: IT requirements to make up for underspend of last few years, staffing, projected costs of meeting Government regulation.
- Feds key issue with the increase is the lack of information provided in the consultation process to enable ratepayers to provide feedback both on the funds requested and the use of funds.
- Lack of engagement in the consultation process was discussed and acknowledged. Feds and some Councillors believe the consultation process failed, and this was made more evident by the level of feedback received by Councillors since Feds highlighted the issues.
- Councillors still appear to believe the increase is required, and Feds acknowledge that it may be, but we expect Council to pass a more “normal” level of rates increase (i.e. approximately CPI + 2%) for this year, and consult more fully next year on the need for the larger “reset” they are seeking, to enable ratepayers to engage properly.
- Feds exec left the meeting feeling that, although Councillors concede the poor consultation process, they continue to ignore that, and use the limited feedback as an excuse to proceed anyway.
- Some Councillors expressed a view that Southlanders had a conservative attitude to debt and that ratepayers would not support long-term debt funding of multi-generational. projects. It was clear this was a point of difference among Councillors as a way to avoid such a large rates hike. Feds disagree and believe long-term debt should be being used more to fund projects that will have intergenerational benefit.
- It felt very much to the Feds exec like the majority of Councillors were more focussed on considering different approaches for how to bring in the extra rates, rather than different approaches to avoid needing extra rates.
- High level of public feedback to Councillors since Feds highlighted this issue was noted.
- Feds feel very strongly that it is unconstitutional to pass such extravagant rate increases on the back of such poor consultation but we are uncertain what Councillors’ positions will be at Friday’s meeting.
Chris Dillon
President
Southland Federated Farmers