Casino livestock agents have united against demands from Richmond Valley Council to pay up front for new renovations to the Northern Rivers Livestock Exchange.
On Thursday five agents – T&W McCormack, Ramsey and Bulmer, Ian Weir and Son, George and Fuhrmann and Ray White Rural – refused to bend to demands by Richmond Valley Council to meet increased charges ahead of renovation works, due for completion at the end of 2018.
Last month the NSW State Government announced a total $7m grant funding, or half required, to bring the aging facility into the 21st century, which means stages one and two of the reconstruction will be carried out as one project, with new soft flooring, a roof and lighting, new slam gates and much more.
Trouble is, half the facility is currently closed for renovations and the agents are angry.
“We’re getting third class facilities for our vendors who are paying top class rates,” said president of the Casino Auctioneers Association Matthew McCormack.
Fees per head of cattle have risen from $8 three years ago to $12.50 now and agents are concerned fees will continue to rise unless they make a stand. Agents’ annual permits will rise to $12,500 but they will continue to pay their own yard labour.
“At the moment the drafting pens are off-line and we are operating from the delivery side which makes it very difficult and we can’t present our vendors’ cattle properly,” Mr McCormack said.
A request by the council to pay an extra dollar per head to help fund the loan was the last straw.
“This issue has been brewing since early July. The council sit and listen to us but they don’t seem to hear. Thursday we made a decision not to sign. We will now explore other avenues of selling our vendor’s cattle.”
Loans require servicing says council
Meanwhile Richmond Valley Council says it has been left with no choice but to make the hard decision to cancel next week’s sales at the Northern Rivers Livestock Exchange following the agents’ decision to not sign their selling permits.
Council’s General Manager Vaughan Macdonald said at issue was the fees and charges structure, in particular a new business usage fee of $1 per head of cattle.
Mr Macdonald said the adjustments to the fees and charges in the 2017-2018 Revenue Policy, which came into effect on 1 July, were an important step to achieving improved results for the NRLX, to enable the business to fund the loan repayments and avoid any reliance on ratepayers’ funds.
He said no one liked a fee increase, however, Council needed to address not only the revenue side of the business, but also the cost side to the equation.
He said Council had met with agents on multiple occasions, including as recently as Monday, and the Casino Auctioneers Association Incorporated making further representations at Tuesday's Council meeting where Council again stressed the importance of the revenue policy decision being upheld.
He said like in any other business, Council had to have the financial means to take care of the viability and longevity of this important sales venue.
“Last year the Richmond Valley community made it clear that Council should retain ownership of the NRLX,” Mr Macdonald said.
“This meant a number of changes for the facility. To upgrade, funding was needed.The Federal Government agreed to a $3.5 million co-contribution, meaning Council had to borrow $3.5 million to start stage one of the upgrade. Fortunately, the NSW Government has also come on board, promising $7 million to complete the $14 million project.
“By the end of next year, the NRLX will be recognised as one of the best saleyards in Australia with high standards of animal welfare, improved work health and safety conditions, quality effluent disposal, convenience for users, and efficient management systems.”
The letter from Richmond Valley Council:
“Dear NRLX stakeholders,
“As of next week, there will be no cattle sales held at the NRLX facility. This is a result of Casino Auctioneers Association (CAAI) members choosing not to sign the NRLX agent selling permit, therefore, leaving no agents licensed to sell at the facility.
“The CAAI members won’t accept Council’s approved agent business usage fee of $1/head for cattle sold. This fee was put in place to help achieve improved results for the NRLX, enabling the business to fund the loan repayments and interest, and avoid any reliance on general ratepayer funds. Council met with agents on multiple occasions, making it clear that Council needed to address not only the revenue side of the business, but also help with the costs involved in running the facility. Council extended the agent selling permits by seven weeks during the discussion stage.
“Last year the Richmond Valley community made it clear that Council should retain the NRLX ownership, upgrade the facility and run it as a fully sustainable business. This required a number of changes to the facility. To upgrade, funding was needed. The Federal Government agreed to a $3.5 million co-contribution, meaning Council had to borrow $3.5 million and we have commenced stage one of the upgrade. Fortunately, the NSW Government has now granted Council $7 million in funding to help complete a $14 million full upgrade of the NRLX, which will be completed by the end of 2018.
“At the completion of the upgrade the NRLX will be one of the most modern livestock selling facilities in Australia. There will be high standards in animal welfare, improved environmental outcomes plus increased work, health and safety standards. There will be improved conditions not only for the cattle, but for all the stakeholders, whilst Council will also adopt more efficient management systems.
“With gross sales revenue of more than $113 million last year, up from over $87 million the previous year, all producers and businesses have benefited from these excellent results. Like any other business, Council has to have the financial means to take care of the viability and longevity of this important sales facility and believes that agents are in a position to contribute an additional $1/head.
“In addition to the $14 million facility upgrade, the NSW Government has delivered a further $360,000 in grants funds to go alongside $60,000 in Council funds, to upgrade the truck wash facility at the NRLX. A third wash bay suitable for B-Doubles will be built, along with 24-hour access to the amenities. Work on this will start later this year.
“Council is disappointed in having to deliver this news to our highly-valued beef farming community, and the many local and regional businesses which support the beef industry. The decision to increase the fees was made with the best interests of the whole Richmond Valley community in mind. This new fee structure has been developed to ensure the NRLX operates as a self-sustaining business unit, with next to no reliance on ratepayer funds and fees remain below industry benchmarks for similar saleyards.
“Please be aware that following this Friday’s 18 August sale, the facility will be locked down and not receiving any cattle, until such time as a licenced agent is secured and more sales have been scheduled. This will include transit cattle, paddock sales and direct consignments which are using the NRLX facility. Cattle from Friday’s sale will need to be removed from the facility by midday on Monday 21 August.”