Editorial: Councils not there just to raise revenue

COUNCILS are the poor cousins when it comes to many financial arrangements, including their ability to raise revenue without raising people's ire.

AN Cartoon 11.3

COUNCILS are the poor cousins when it comes to many financial arrangements, including their ability to raise revenue without raising people's ire.

Council rates are one of the main sources of funding for local government and one of the main sources of taxpayer discontent.

Federal and state governments by comparison have a slew of high-revenue taxes, charges, levies, fees, bills, dividends and fines from which they can draw revenue.

They are also taxes about which little is known by the public, and little anger is therefore directed towards the recipients of the money.

The revenue raised by the users of poker machines is one such example.

Gamblers are soft targets who contribute more than a quarter of a billion dollars of revenue to the State Government each year.

In terms of empathy from the public, there is more concern about the side-effects of problem gambling than the revenue raised.

Income tax, company tax, GST, payroll tax, fuel tax and rates are the biggest revenue raisers in Australia, and in that order.

In terms of the anger generated, rates would easily eclipse most of these.

Councils will doubtless garner more resentment by trying to claim back more than $20 million they are forced to gift each year to worthy organisations thanks to the existing ban on charging rates to not-for profit community organisations.

Such a change would be an extremely unpopular measure in many communities which rely heavily on the good work of community groups.

Even if the ban were lifted, it is likely public pressure would mean some of the rates would continue to be waived for the most worthy organisations anyway.

Councils are not just there to balance the books. They are there to help create healthy communities. Any restriction on the welfare work of community organisations by increasing the fees they pay to government would be self-defeating and create an additional burden on the taxpayer.

Councils need to be run like a business.

And, like any other businesses facing tough times, they must make tough decisions.

In this case, they must become more efficient rather than taking the easier path of raising more revenue from the people they exist to serve.

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Don't bet on a Cup date shift

SCORCHING temperatures won't stop the revellers at Morphettville today for the 144th running of the Adelaide Cup.

It's the most important date on the calendar for the state's biggest sport industry and a crowd estimated at over 17,000 will celebrate in style.

The Cup was moved from May to March seven years ago to increase the chances of better weather.

Many are happy with the results but traditionalists are arguing strongly for a return to May when the best horses could be attracted to compete in the two mile classic. They want the Adelaide Cup public holiday to move too.

South Australians have become accustomed to the "Festival" holiday in March and wouldn't wish to see it returned to May.

The Government won't even consider moving the holiday to May until after the 2014 state election. Chances are next year's Adelaide Cup will be in March - but the battle lines will be drawn soon after this year's Cup is run and won.