FUNERAL homes have lashed out at a Launceston City Council proposal to increase Carr Villa burial plot rates by a possible 90 per cent over four years.
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The council’s 2015-16 draft budget papers include a proposal to increase the Carr Villa and Lilydale Cemetery plot rates by 40 per cent in two years – 15 per cent in 2014-15 and 25 per cent in 2015-16.
However, it has now been confirmed by those within the sector that the rates are proposed to rise by 25 per cent a year for the next three years.
A council spokeswoman said Carr Villa operated at an annual deficit of $350,000 and required $120,000 of capital funding a year to come from ratepayers.
For this reason the council was seeking the 25 per cent increase ‘‘with fee increases anticipated for the next few years to address this significant deficit’’, she said.
Funeral directors have complained about a potential 120 per cent increase (inclusive of compound interest) over four years, the hit they will take in pre-paid arrangements with families, losses they will incur on bad debts and discrimination against religious and cultural groups.
Two of six submissions to the 2015-16 draft budget were from funeral directors angry about the increase.
Submissions will be discussed at the council’s committee meeting on Monday.
T.M. Foley Funerals director Nick Lee gave the example of a double-depth plot and said that on June 30, 2013, it cost $1342 but would rise to $2775 by July 1, 2017, if the proposed increases were agreed to.
‘‘This mooted increase is totally unethical, immoral and unacceptable to all ratepayers and members of our community,’’ Mr Lee said in his submission to the council.
J.A. Dunn Funeral Directors manager John Peters said that for as many as 15 years the council only increased rates in line with CPI, but two years ago it sought to increase them by 15 per cent and now 25 per cent.
Finney Funeral Services managing director Mark Graham said that any business that sought to increase its costs by 25 per cent in one hit would be run out of town by the community.
He said he was not against an increase but certainly could not accept one of this extent.
The council spokeswoman said the proposed fee increase followed a review of six other cemeteries that found its income was well below the national average.
She said cremation fees would only increase by 3 per cent.
