Changes to agricultural rates setting process ensure fairer system for producers

New changes to the Rural Lands Protection Act 1998 passed in Parliament will help improve the long term viability and relevance of the Livestock Health and Pest Authority (LHPA) system, NSW Minister for Primary Industries Tony Kelly said.

“These approved changes aim to stop excessive rate rises in the future, and to manage a smooth transition to a more equitable and easier to understand per hectare rating system,” he said.

LHPA ratepayers and rural communities will benefit from the changes, which will improve the efficiency and effectiveness of the rating system and ensure excessive rate rises are avoided in the future.

The changes include increased Ministerial decision making powers for rates and the deferral of the introduction of a per hectare rating system until at least 2012.

“The State Government has been listening to the concerns of rural communities and looking at how this reform process can be improved to ensure consistency for ratepayers,” Mr Kelly said.

“While the State Government stands by the need for significant changes to the old RLPB system, as identified by the Hon Richard Bull in his report to the Government, we have shown we are prepared to recognise issues raised, and make necessary improvements.

“Based on the actions of a few Authorities in setting rates this year, it is clear the autonomy of local LHPAs needs to be balanced with some Ministerial oversight of rates approvals.

“By enabling ministerial approval of proposed rates, I can play a more hands on and effective role in helping to achieve a fair and effective new system.

“The changes also include the ability for LHPA’s to introduce the capacity to divide districts into zones and to charge different rates for each zone.”

Mr Kelly said he made a commitment in Parliament that he will not approve increases in the general and animal health rates that would result in an increase in revenue collected by an individual authority from these rates in excess of CPI.

The Minister also said that he would not approve increases in excess of 10% of any of the components of general and animal health rates.

“It is important that producers, LHPA staff and directors and industry groups continue to all work together so we can achieve a new and improved system that ensures the continuing protection of livestock and other agricultural interests,” he said.