WINE INDUSTRY OPPOSES SHIRE RATING PROPOSAL
The Margaret River Wine Industry Association has taken a strong stand against plans by the Shire of Busselton to change its rating on rural unimproved land because of the economic impact on northern based wineries in the Margaret River wine region.
In its Rating Review – Change in Manner of Assessment proposal, the Shire wants to charge higher rates on winery-related operations such as the winery itself and cellar door.
Association Chief Executive Officer Nick Power said it was the Association’s view that the definition applied to rural land being ‘land utilised for commercial (agricultural) activities’ covers situations were a landowner grows grapes and processes that fruit into wine on their property.
“To argue otherwise is to ignore traditional common practices that apply throughout the wine industry in Australia and overseas, especially in areas such as Europe,” Mr Power said.
“It is our strong view that cellar doors are a means by which the grape grower/wine producer brings their product to the consumer. Again, if one assesses the traditional nature of agriculture and the wine industry in Australia and overseas this, along with dedicated farmers markets, are the predominate methods by which produce was and is sold.”
Given the recent difficult years faced by the wine industry, Mr Power said the Shire should not be considering adding a further financial burden on wineries.
“Some grape growers and wine producers in the local area would be very delicately poised financially. Grape growers have had their fruit contracts reduced significantly by wine processors. In order to remain in the wine industry and be viable, some have elected to follow the only option available which was to open a cellar door,” Mr Power said.
“Our advice from the Valuer Generals Office is that it will be practicably impossible for the Shire of Busselton to assess individual properties on a Gross Rental Value basis. Instead they will have to use Capital Value. Given the high capital expense of buildings, especially in the South West, utilising Capital Value has the potential for rates to be of astronomical proportions.
“Any additional impost at this time will, in many cases, bring both small and medium sized wineries to the brink. Given that the economic health and well being of the whole region depends largely upon tourism and specifically wine tourism, the Shire should be working with the wine industry, not against it.”
The Association will seek clarification from the Minister of Local Government to determine if the Shire breached Due Process, with its November 2006 minutes suggesting the Shire was going ahead with the new rating, regardless of public comment.
“Given the statutory comment period was held over one of the busiest periods for wineries, that being Christmas and New Year, we suggest the Shire begins a completely new rating review process without bias or prejudice,” Mr Power said.
