Carterton District Council corrects forestry rates model, raising average increase to 1260%

What happened

Carterton District Council has confirmed that modelling provided by advisory firm Morrison Low contained an error in how production volumes were allocated to land area. The correction has shifted more roading costs to forestry operators while reducing the burden on dairy farmers. An average forestry ratepayer currently paying $2825 would now face a proposed increase to $38,391, while an average dairy farm paying $8825 would face an increase to $16,929. The council is introducing a targeted roading rate to collect roading revenue more proportionately, after an assessment found that dairy, forestry and pastoral farming collectively make up more than 68% of the council's non-weather related roading costs. The error was identified when Carterton dairy farmer and councillor John Stevenson questioned the modelling during consultation. Morrison Low has updated its report, and the council extended the consultation period to October 26. Some forestry operators have challenged whether the model accurately reflects how heavy vehicle users actually pay for road use through existing road user charges.

Key facts

• Average forestry rates increase from $2825 to $38,391 (1260%)
• Average dairy farm rates increase from $8825 to $16,929 (92%)
• Dairy, forestry and pastoral farming account for 68% of Carterton's roading costs
• Consultation deadline extended to Monday, October 26
• Juken New Zealand faces 1756% increase, from $14,000 to $265,000 annually

What happens next

Residents and businesses have until Monday, October 26 to make submissions on the proposed increases.

Primary source: Carterton District Council revenue and financing policy consultation; Morrison Low modelling

Covered byNZ Herald1NewsNot covered byRNZStuffNewstalk ZBOtago Daily TimesNewsroomThe SpinoffBusinessDeskinterest.co.nz

Coverage across the news outlets we track, as at publication.

Where the outlets differ

The third NZ Herald article includes industry responses from specific operators: New Zealand Forest Owners Association calculates a 300-hectare forest rising from $8700 to $107,700, and Juken New Zealand details its position across 2000 hectares and references recent mill closures as context for the rates burden. The first two articles focus on the council's acknowledgment of the error and the correction process. All three report the same core figures and correction outcome.

What outlets are saying