Southland Federated Farmers president Jason Herrick has criticised Environment Southland’s (ES) attempts to cut costs, which in the 2024-5 year will include reducing the proposed rate increase from 23% to 12.6%, halving its flood protection work and digging into reserves.

He believes that while beneficial, the proposed changes are a red herring detracting from the long standing bureaucratic issues at hand for Southland farmers.

"I would like personally, to go back to the drawing board to keep the status quo and actually dig deeper into the cost expenditure,” Mr Herrick says.

“All councils need to actually start spending the money wisely and efficiently, pulling back to meet the income they have and to stop offloading pet projects or "like to haves" onto ratepayers.” 

It’s been a grim year for farm owners so far, and Mr Herrick says although inflation has eased off a bit, savings are getting soaked up straight away by the rate increases across all four councils.

"A lot of farmers are not going to break even, a lot of farmers are going to lose money, a lot of farmers are under bank pressure.”

"With many facing the decision to get out entirely and being unable to sustain things going forward, the operational side of councils across the region are coming under scrutiny."

"The biggest problem we have is actually the LGNZ [Local Government New Zealand] policy frame network, so even the counselors have got to do as they are told pretty much,” says Herrick. 

Alongside this year's changes, ES have also flagged their intention to look at transitioning to a new rating model.

Herreck suspects a capital-based system will be on the table and while seeing both positives and negatives to it, he remains skeptical.

"I'm not in favor of the Capital rating system, because it will deter people from doing what's right - because it is going to cost them more.”

Herreck used the example of a wintering barn, that typically cost over $3.5 million.

"If they're going to go to a capital rating system, no one's going to put in a wintering barn because it's going to increase their rates tenfold."

To Herrick, it should be about doing things properly and doing what's fair instead of penalizing the people doing things right.