The Farm Business and Regional Development Committee (FBRD) is the policy development committee that tackles much of the government policy issues that directly affect the commercial farmer's bottom line. The FBRD committee members comprise of a vast pool of experience and expertise. Many within the committee have been involved with the VFF for over 15 years.
The FBRD deals with a range of issues from Local, State and Federal taxation to heavy vehicle regulation. However, to sum up the primary objective of the FBRD in one sentence would be to:
Ensure that the business environment for Victoria's farmers is fair and encourages sustainable farm sector growth.
2010/11 Farm Business and Regional Development Committee
Peter Tuohey - Chair
Peter operates a grain and sheep farm in northern Victoria, cropping 3000 ha of dryland with some leased irrigation country and at present running 1100 merino ewes joined to Merinos and white Suffolks.
He began his involvement with the VFF in 1990 as the grains delegate of the Pyramid Hill Branch and has held various positions within the VFF for the past 20 years. Most recently, he was elected as the VFF Vice-President.
He has been involved in lobbying State Government for rail standardisation, rural road funding, rural rating and changes to the Fire Service Levy. Peter has direct involvement in the following committees:
- Victorian freight and logistics Council
- VicRoads Freight Advisory Council
- Grain Trade Australia Freight and Handling Committee
- VFF Grains Group Executive
Geoff Crick - Member
- Geoff is a potato grower from the Ballarat region.
- He has been heavily involved with the VFF and NFF for the past 20 years and has also held many senior positions within both organisations.
- Geoff is a recent recipient of an Order of Australia Medal for his contributions to the agriculture industry.
Anton Neal - Member
- Beef producer from Gisborne
- VFF Land Management Committee
- Victorian Firearms Consultative Committee
- Nation Farmer Health/Farm Family
David Jochinke - Member
- Operates a mixed farm north of Horsham
- VFF Treasurer
- West Wimmera District Council - President & Deputy Grains Councilor
- Wimmera Machinery Field Days - Site Steward
- Grain Growers Association - Regional Committee
- Wallup Topcrop / Landcare group
Adam Kempton - Member
FBRD Issues
Sumbission to VCEC Reform Agenda Paper
The VFF has called for major changes to native vegetation rules and for better protection of the right to farm in its submission to the Victorian Competition and Efficiency Commission (VCEC) Reform Agenda Paper.
A copy of the submission is below.
 | VCEC reform agenda (662kb) |
Fire Service Levy
The current Fire Service Levy (FSL) system in Victoria is extremely unfair and encourages under- and non-insurance. The VFF is looking to replace the FSL with a funding system that will both provide adequate funding for the state's fire authorities and ensure the financial burden of the service is shouldered by those who are potential benefactors of the service.
Victoria has the unfortunate record of having the highest taxes in the world on property insurance products. This position is demonstrated in a report conducted by international consultants, Deloitte, which shows that compared with rates of up to 78 percent for Victoria, France charges 30 percent, Germany 10 percent, UK five percent, Canada (Ontario) 3.5 percent, Singapore two percent, US (California) 2.4 percent and Ireland two percent.
The FBRD Committee secured a win in 2010 with the Victorian State Government agreeing to replace the FSL with a more equitable funding arrangement. An issues Paper was released by the State Government on June 30, 2011 with submissions due on September 30.
The VFF will be advocating a fire services funding model as outlined in our policy, which can be found at the link below:
 | VFF Policy: Funding of Fire Authorities (61kb) |
| VFF Victorian Fire Services Property Levy submission Sep 30 2011 (665kb) |
Municipal Rates
The recent municipal rate rises across Victoria have been a bitter pill for VFF members. The unsustainable nature of municipal rates highlights why the Local Government rating system is flawed and needs to be changed.
The Local Government rating system does not capture accurately capacity to pay nor benefit received. The income producing assets of the non-farm sector are not subjected to an annual ad valorem tax; whereas, the major income producing asset of the farm sector (land) is subjected to this tax. This imposes a distorting burden on agriculture.
The VFF is calling on local councils and the State Government to examine the equity of their rating system. In many cases, farmers are paying more than three times that of their residential counterparts, with many farmers paying 10 times.
The VFF is supportive of a flat municipal charge that is assessed equally across all rate payers as provided for in the Local Government Act 1989. The municipal charge is meant to help pay for administrative expenses and can be assessed up to 20 percent of the total revenue from rates.
VFF members are also calling for all political parties to make a commitment to change the Local Government funding system so rural councils receive a larger portion of the federal funding.
The VFF is calling on the State Government to conduct a parliamentary Inquiry into the |fairness and equity of the rating system in rural and regional Victoria.
See our latest briefing paper on the municipal rating issue by clicking the link below:
| The funding of local government in Victoria: The need for change (160kb) |
VFF Submission – Constitutional Corporations Bill
In November, 2011, the VFF made a submission to the Constitutional Corporations Bill. The Bill proposes that Farm Gate prices are displayed on supermarket price labelling.
While the VFF agrees with the principle, we cannot yet support the bill until more research is done on its practical implementation. The VFF submission can be found below:
| Constitutional Corporations Bill (256kb) |
Carbon Tax
The Multi Party Climate Change Committee, as established by the Federal Government, has recommended the establishment of a Carbon Tax in the short term (to be July 1, 2012) before an emission trading scheme 3 – 5 years later.
While agriculture emissions are exempt from the scheme there is concern that the indirect costs will be substantial. With fuel excluded the major cost impact will be on electricity use. It is estimated that this could cost dairy producer $6,000 per year.
As agriculture is a trade exposed industry any additional costs threat the sectors ability to compete against other producer that do not face a carbon price.
All policy needs to be supported by logically probative evidence based. As there is no evidence a tax on carbon will impact climate change it should not be pursued.
Road pricing reform
There is currently a strong push to move road use pricing towards a mass-distance-location regime, where the price associated with road used will vary based on the weight of the vehicle, how far the vehicle has travel and where that travel has taken place. The VFF is concerned that a move to an MDL system of road pricing will deliver a worse situation for farmers that currently generally have low compliance costs and little room for variation in the freight task.
The freight task in Australia is diverse between the sectors and within the farming sector the task is diverse once again. A road pricing regime needs to have low compliance costs, be transparent and provide sufficient funding for road maintenance (particularly local roads).
A well designed hypothecation of fuel excise will close the loop for funding road maintenance and deliver adequate funds for maintenance requirements.
VFF Submission - The future of cheques
In July 2011 the VFF made a submission to the Australian Payment Clearing Association (APCA) who are engaging in a public consultation on the future of cheques. Our submission can be downloaded below.
| VFF submission on the future of cheques (479kb) |
VFF Staff Contact:
Darryl Harrison
Senior Policy Advisor
Farm Business and Regional Development Committee
M: 0400 838 097
