Adelaide mayors call on LGA to offer rate capping olive branch

THE Local Government Association will next week decide if it supports the State Government’s legislation to cap rates, as mayors of two of Adelaide’s biggest councils implore the organisation to come to the table.

• Monday: Council rate cap will be decided by the end of the year

TWO of Adelaide’s biggest councils have implored the Local Government Association to work with the State Government on rate capping.

The LGA has been a fierce opponent of the move, which was one of the cornerstones of the Marshall Government’s election platform.

Adelaide Lord Mayor Martin Haese and City of Port Adelaide Mayor Enfield Gary Johanson said the LGA needed to enter the negotiations.

As revealed by The Advertiser, Local Government Minister Stephan Knoll’s legislation will let local government raise extra revenue to cover the cost of new developments. It also will allow councils until the end of March to seek special circumstances exemptions from the limit ahead of the cap coming into full force from July 1 next year.

In her first update to members since becoming the president of the LGA, after former president Lorraine Rosenberg quit, Adelaide City councillor Sue Clearihan said the association would be seeking the views of councils at a special meeting next week before taking a final position on capping.

Adelaide City Councillor Sue Clearihan has been named the LGA's new president and says the organisation’s position on the legislation will be decided after discussions with members.

“The LGA will take a close look at the Bill over the next few days, and provide further analysis to all members as soon as we can,” she said.

“However, as a membership association, we will be seeking the views of councils before finalising a position on the legislation.”

Ms Clearihan said the LGA had questions about how it would deal with cost shifting and how it would be determined. Mr Haese said that, following Mr Knoll’s move, now was the time for the LGA to cast off its fierce opposition and help the government with the legislation that will be introduced into State Parliament today.

“The LGA had a strategy pre the election and my view is now post the election it’s time to change that position to take into account different circumstances,” he said.

“It would be the sensible and responsible thing to do to get to the table to negotiate with the Minister post haste.”

Essential Services Commission of SA, which already has oversight of utilities and water bill rises, will decide the maximum allowed council rate increase by the end of December this year.

Mr Johanson said this showed it wasn’t anything to fear: “We owe it to our communities to give it a shot … there is a mandate for it.”