Farmers and Whangarei District Council are at loggerheads over a flood protection scheme that's deep in debt.
The Hikurangi swamp scheme provides protection for about 6000 hectares of flood-prone farmland north of Whangarei.
Its stopbanks, spillways and pumps propel water back into the Wairua River during times of flooding.
The scheme been run since 1975 by a farmers liaison group and Whangarei District Council.
About 25 dairy farms are on prime dairying land.
The council says the rate paid by the farmers has not increased in 20 years, and the scheme is now running at a loss of nearly $1 million.
The council has to cover that by way of a loan, on top of another estimated loan of $3 million for 12 new drainage pumps over the next few years.
But the farmers say a rate increase would put a number of them out of business.
Ben Smith, their representative, says that means an imminent rate increase which would put many out of business.
He says the deficit is due to council mismanagement of the scheme and it should be transferred to farmers or Northland Regional Council.
Deputy Mayor Phil Halse says he agrees there should be a change of management to the regional council which manages other swamp schemes.
