East Gippsland Shire Council will request assistance from the State Government for rate relief for the region’s farmers struggling with the drought following its meeting held in Mallacoota on Tuesday.
Raised as urgent business by Cr Joe Rettino, the motion was put that mayor, Cr Natalie O’Connell, write to the Victorian Minister for Agriculture, Jaclyn Symes, and Premier Daniel Andrews, seeking urgent assistance with rate support for the East Gippsland Shire farming community due to severe drought conditions.
The request comes after further feedback from the farming community that this type of assistance is the most equitable assistance council can provide at this time.
“The East Gippsland Shire is deeply concerned about the impact that this extended dry spell is having on our farming enterprises, our communities, our families and associated businesses,” Cr Rettino said.
“We acknowledge that the State and Commonwealth governments have provided funds to support individual farmers and communities, however council continues to hear from our community that’s asking for relief around rates that would provide them with cash injection needed to free up cash for them to reinvest in their farms.
“The East Gippsland Drought Reference Group (EGDRG) reiterated this view in its recent meeting and this would represent a tangible freeing up of funds to redirect into maintaining farm operations, injecting much-needed money into the local economies.
“East Gippsland Shire Council recently collected approximately $5 million in farm rates and the feedback continually from our community suggests that the hoops that people must go through to access other various assistance often prevents them from accessing that support.
“Rate relief provides a quick and easy administered way of providing that support.”
Cr Dick Ellis was against council seeking rate assistance from the State Government.
“Rates are a middle line or baseline costing for any business. Farming is a business,” Cr Ellis said.
“I have great empathy for the farmers and the difficulties they are facing in drought.
“The farming community has been well supported by the State Government, they are supported by the Federal Government. There are lots of little packages going out to assist them in schooling packages, clothing packages, holiday packages, school equipment packages, counselling.
“This rate relief is a push from a lobby group coming through and impacting on our clear decision making.
“I get lobbied by retailers as an example of how unfair it is that they have to pay such high rates when their businesses are suffering. So I can’t see why we can’t apply a rate relief to the retailers of East Gippsland who are suffering. It’s not just one sector of the community.”
Cr Mark Reeves agreed with Cr Ellis.
“We understand that there are some difficulties for many farmers and businesses and we note that we provide effectively a 50 per cent discount on rates to farmers over other business enterprises currently,” Cr Mark Reeves said.
“I have had many overtures from other commercial business operators that this effectively removes them from the opportunity to have assistance as well.
“I think the State Government is acting, it has provided cash grants to farmers who have discretion to use that for their rates should they wish, and that hasn’t been provided for the other business enterprises who have knock-on effects of the drought at the moment.”
Cr Marianne Pelz supported the request for State Government assistance.
“Economically it has a secondary effect, to flow onto the people who are in the businesses serving the farming industry, which means indirectly they do get a kickback from it,” she said.
“While we’re giving them opportunity it’s also stimulating for our region.
“This isn’t a lobby group, this is a conversation that every farmer is having with anyone and everyone, certainly at the drought reference group events that are being held and farm visits.
“The consistent message from farmers is that rate relief is the most equitable way to assist farmers and provide some cash release.
“We have had many discussions around the table over the last few weeks and everyone agrees that council simply could not cover rate relief from us.
“That’s why we are asking the State to provide that rate relief to ensure that we would not have to cut services or cut employees.”
Questioned by councillors Ben Buckley and Reeves, it was confirmed that what council is seeking from the State Government is a $5 million one-off grant to assist with rate reduction for farmers.
The motion to request such assistance was carried, with Councillors Rettino, Pelz, John White, Colin Toohey, Jackson Roberts and Ben Buckley for and Councillors Ellis and Reeves against.
The period for farming rate consideration covers the 2018/19 and 2019/20 rating/fiscal years.
Council will also thank the Minister for her support to date, and hopes to continue the dialogue with her department as further assistance will be required as drought conditions are monitored and responded to.
