Tenement rates forced up
Shire of Leonora chief executive Jim Epis is calling for answers from State Government authority Landgate, after a spike in land values of up to 300 per cent forced councils to increase rates for some mining tenements.
The move, mooted in 2013, will result in rent increases for non-graticular and graticular exploration licences with a life greater than seven years and three years respectively.
Values for non-graticular exploration licences will increase by 236 per cent after seven years and fees for graticular exploration licences will increase 53 per cent after three years, 111 per cent after five years and 300 per cent after seven years.
The increases in unimproved land values — which are used by local governments to assess council rates — are putting pressure on Shires to explain associated rate hikes.
In an email to his local government counterparts on February 14, Mr Epis appealed for support from other chief executives in the region, including those from Ravensthorpe, Kalgoorlie-Boulder, Dundas, Menzies, Laverton and Ngaanyatjarraku. “The way things are going I’m likely to cop a bullet in the back,” he said in reference to the mood of ratepayers who were registered applicants for exploration licences.
“I don’t think Landgate has consulted with the mining industry nor local government on this matter very well — things are hard enough as it is without imposing additional costs.”
The issue was also highlighted by Kalgoorlie MLA Wendy Duncan, who said last week the Government needed to take a holistic approach to costs associated with small mining operations if help was to be forthcoming for troubled prospectors. Referring to scheduled Department of Mines and Petroleum environmental fees to be rolled out mid-year, Ms Duncan said she was confident the Government would be able to ease the financial burden.
“What I object to is this cost recovery model, when miners and prospectors are already paying rates and rents and royalties,” she said.
Mr Epis said he was hopeful of a speedy resolution, and urged those who were unhappy with evaluations to appeal to the Valuer-General.
“But don’t blame local government,” he said. “Ratepayers come to the local government and ask for reasons and I say ‘we are just following instructions that are provided to us by Landgate’.”
Valuer-General Graham Jeffery said yesterday unimproved values were based on the annual rents set by the DMP.
“The Department of Mines and Petroleum did not consult with Landgate at the time it introduced the increased rents,” he said.
“Landgate wrote to local governments in November, 2013 advising them that unimproved values for some exploration licences would increase.”
