South East producers are being urged to submit their feedback on significant proposed increases to the Natural Resource Management Board’s water and land-based levies.
The consultation period for the draft business plan, which will includes raising an extra $2.26 million in the 2016-17 budget for state water planning and management costs, ends 5pm tomorrow (Friday).
The state government has directed NRM Boards to collect monies under the National Water Initiative for partial cost recovery. They are to collect $3.5m in 2015-16 , $6.7m in 2016-17, and indexed for future years.
The SE is being asked to contribute 33 per cent of these rises, with the Murray-Darling Basin and Adelaide and Mount Lofty Ranges NRM areas also major contributors.
To raise this additional revenue the SE NRM Board is proposing to change the land levy from a fixed rate assessment of $42 to one based on capital value. It also wants to raise the water levy with a fixed charge of $200 on each water licence plus a rate per megalitre of water allocated. At the moment, this is a rate/mgL on allocated water only.
Primary Producers SA and Livestock SA remain opposed to the rises and are calling for an independent review into water planning and management costs in SA.
On Monday after a special meeting with the SE NRM Board, the Limestone Coast Local Government Association backed this. They are also looking for the SE NRM Board to find cost savings from its 2016-17 budget, and want the board to use the best services and resources available, not limited primarily to government employees.
PPSA NRM chair Fiona Rasheed says more clarity surrounding the proposed rises is needed.
“The increase for each individual landholder will be different and the increase across the eight NRM regions also varies so it is difficult to understand the exact impact on individuals. Landholders need to understand what their increase will be and also where their money will be going so they can see that they are getting value for their money,” she said.
She is hopeful a meeting with Environment Minister Ian Hunter in coming weeks will mean the government agree to conduct a review.
“We have been seeking an independent review based on its merits alone but the National Water Initiative which they are using to justify the levy increases also backs up our call,” she said. “It outlines the need for an independent test for cost-effectiveness when water users are asked to pay for water management and planning activities, so we believe the government must undertake such a review to meet its obligations under the NWI".
NRM presiding member Frank Brennan says the board has deliberated about options to raise levies in the “most equitable” way and is asking the community to work with it to determine the best model.
The draft business plan proposes to raise 54pc of the levy – or about $4.6m – through the NRM land levy and 46pc – about $4m – through water licence fees. The previous business plan proposed to raise a total of $5m in levies in 2016-17 but this has risen to $8.6m.
If a flat fee was implemented for 2016-17, the charge would be about $121 for each rateable property. Those who do not own property or hold a water licence will not directly pay the levies.
Mr Brennan said in a land-based capital value system, 9000 properties would be levied less than $42, while 450 properties would be levied more than $1000. The rate for allocating water for irrigation or forestry purposes would fall from $2.75/mgL to $2.58/mgL plus a $200 fixed charge a licence.
By early this week 20 submissions had been received, including a number expressing concerns about the collection of the state management costs.
Wattle Range Council mayor Peter Gandolfi says many property owners and major employers are unaware of the substantial increases they are facing.
He believes there would be much fiercer opposition if residents were aware of the proposed 185pc increase in the land-based levy and 20pc rise in the water planning and management levy.
“One business in Wattle Range could have its land-based levy rise from $42 to $18,300 and was totally unaware of the rise,” he said.
“From the land-based levy alone $1m will be ripped out of the Wattle Range community,” he said
His council lead SELGA’s motions, including a push to identify cost savings.
He says there are many examples of the board moving away from its core services, as well as duplication in planning and compliance activities.
‘BELT TIGHTENING’ NEEDED BY BOARD
CONMURRA farmer Lachie Seears says the SE NRM Board’s proposed levy increase is “another unnecessary grab for money” by the state government.
He is not opposed to an additional levy as long as the money is being spent supporting worthwhile projects in the region and delivering results to all those that contribute.
But he is calling on the NRM Board to be more effective communicating how their budget is spent.
“Farmers and other small businesses are tightening their belts during this dry period but it doesn’t seem that the NRM are cutting back their spending at all,” he said.
He says the capital value method being considered to raise the additional $1.8 million in 2015-16 and $2.26m in 2016-17 would be a “wealth tax”. He believes it would unfairly penalise those who have built up their farming businesses.
“Even with the proposed $0.0003272/$1 capital value if you have a farm worth $5m you will pay an extra $1600 a year on top of council rates and all the other existing levies,” he said.
“Farmers are quite often asset rich and cash poor."
- Details: www.naturalresources.sa.gov.au/southeast
