The Gunnedah shire’s mining industry is bracing for an 85 per cent increase to its council rates.

The increase forms part of a revised proposal to lift Gunnedah Shire Council’s revenue base through a permanent, special rate variation.

Gunnedah Shire Council this month voted to apply for a rate increase of 37.67 per cent over two years.

This was down from 38.88 per cent under the previous model which would have spread the increase uniformly across the community – starting with a 24 per cent increase in the first year.

Under the new proposal, the rate increase would be capped at 32.25 per cent over two years for ‘residential, business and farmland’ categories – leaving the balance of the revised increase to be sourced from the ‘mining rating category’.

Gunnedah shire general manager Eric Groth said this permanent change, expected to be an 85.13 per cent compound increase for miners, would lift mining’s contribution in the rate mix from about 10 per cent to 14-15 per cent.

He said that increase was not “unreasonable” given mining’s contribution at other NSW councils.

Mr Groth singled out councils in the Hunter region as an example, which he said make up to 30 per cent of their rate mix.

There was no further formal consultation undertaken by council with the mining industry before the revised 85 per cent rate increase was voted on, other than limited discussion with Whitehaven Coal between council meetings. But Mr Groth said the two-tiered approached was a good compromise between all ratepayers.

“Certainly (Whitehaven) will have concerns, I expect them to, but council also needs to make the decision that it thinks is right,” he said.

“My view is council struck a balance between where it shifted the burden (of the rate rise).

“If we took the burden off mining, it would put us back into a similar situation we were in before where we have to share that across the rest of the ratepayers or fund further efficiency savings.”

Additionally, the cost-shifting to mining was in line with community feedback to council that the mining sector should make a greater contribution by way of rates.

The general manager highlighted the mining industry would also benefit from many of the building infrastructure and transport network (roads, bridges and associated services) improvements as a result of the rate increase.

Similar to the previous rate rise proposal, Gunnedah council will undertake more community consultation about the revised percentage increase – public submissions are open with council until December 19.

This will take place before council makes a formal submission to the Independent Pricing and Regulatory Tribunal early next year on its rate rise proposal. IPART will then carry out its own round of community consultation in Gunnedah.

Mr Groth said given the tight timeframes with the IPART application process, any further major revision to the rate increase, would be difficult.

“Certainly, it’s possible to change the percentage (for mining) but as staff, we would be concerned to change that now because of the time to make an application,” he said.

Gunnedah shire director of corporate services, Kelly Stidworthy, said the community can be reassured all funds spent under the rate rise will be documented through the appropriate channels.

“There are statutory requirements to account for the funds, making sure that’s included in council’s reporting system,” Ms Stidworthy said.

“We must identify where the (rate rise) has been allocated to through our budget processes.

“We must report it in our annual report, a public document, where that money is being spent.”

Council figures show its current spending is $3.1 million less than it should be to maintain its assets and services to targeted service levels.

Whitehaven Coal declined to comment on the rate change proposal.

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