THE Ulster Farmers’ Union has hit out at government proposals to reform the rating system, on grounds that these would be unfair to rural areas.
And deputy president Ivor Ferguson says that if plans are not carefully designed and "properly rural-proofed", they will have a negative impact on rural businesses and rural communities.
But the UFU said it was encouraged by the response of government officials and has been assured its concerns will be carefully considered as the new rating policy is developed.
“We need policies that improve economic activity and the sustainability of rural communities. The proposals in their current format will not deliver this. The government is receptive to our concerns and I believe a solution can be found,” says Mr Ferguson, who was speaking after a meeting between the UFU and officials from the government’s Rating Policy Division.
The government is suggesting small business rate relief should be targeted at the retail and hospitality sectors, but many farm diversification projects may not be eligible.
“Farm incomes are linked to volatile markets. Many farm businesses have responded by diversifying into other business areas," he said.
"They qualified for the Small Business Rate Relief (SBRR) scheme. This has eased the burden of rates and helped businesses become established, often providing employment in areas where jobs are limited.
"Commercial rates should not discriminate by enterprise, particularly in rural areas. If rural businesses are not eligible for SBRR, and have their rates calculated using the current commercial system, this will jeopardise their viability.”
The UFU has always opposed a capital value rating system for domestic properties and is against the removal of a capped system.
“This does not work for farming families. Farmhouses by their nature are large, often with sought after views over the countryside. This results in high capital valuations, but farmers are traditionally asset rich and cash poor," Mr Ferguson said.
"Rates should not be linked to house size or value. The cap on domestic rates is critical, and a significant jump would be unfair to farmers and their families."
The UFU says it accepts the need for reform, but Mr Ferguson says removing the cap on domestic rates would not be a sensible option.
“A truly major overhaul is needed. Ultimately, we would like to see a system based on the level of service received and a household’s ability to pay.”
