Rate capping set to fail before it even goes to the Upper House, after key LGA meeting
IMPOSING rate capping on South Australian councils looks set to fail even before it goes to the state’s Legislative Council after a key crossbencher labelled the State Government’s policy as one “that stinks” and won’t work.
- Details revealed on plan to limit council rate rises
- Mayors increase fight against plan to cap rates
- Major councils seek peace deal with State Government
- Council rates rise at almost three times rate of inflation
IMPOSING rate capping on South Australian councils looks set to fail even before it goes to the state’s Legislative Council after a key crossbencher labelled the State Government’s policy as one “that stinks” and won’t work.
SA Best MLC Frank Pangallo told a panel session held after a key meeting held by the LGA on the State Government’s plan to limit the rate rises of the state’s 68 councils that he believed it was a “nightmare” piece of legislation and he and fellow SA Best member Connie Bonaros would oppose it in the Upper House.
Mr Pangallo did offer a small ray of hope to the State Government’s chances of getting the key policy up, saying he would be open to the proposed Productivity Commission assessing the plan to cap rates, but was largely scathing of the legislation.
“Nothing that I heard today would make me want to change this position that we are against rate capping,” he said to applause from LGA members present.
“In fact … what I heard today it’s a nightmare.”
In what was Local Government Minister Stephan Knoll’s last chance to address the sector before the state’s councils go away and hold individual votes on the proposal before August 3.
More than 200 mayors, elected members, chief executives and council staff at Adelaide Town Hall heard of the experiences councils in NSW and Victoria had after introducing rate caps.
LGNSW president Linda Scott offered SA councils a “vision of Dickens’ ghost of Christmas’ yet to come”, saying limiting rate rises in her state meant NSW councils needed to find nearly $1 billion each year to fund key infrastructure.
“It means that we are dependent on State Government and Federal Government grants that are not part of our strategic plans,” she said.
“It has created poorer communities.”
Mr Knoll said if the legislation was passed it would be the first step of a significant reform journey for State and local governments over the next four years.
“In a Marshall Liberal Government you have a partner in reform,” he told councils.
“You have a government who wants to help the local government sector do what it does more efficiently and better benefit ratepayers.”
Adam Wilson, the head of the independent body that will decide the maximum council rate rise Essential Services Commission of SA said it would be the most plausible course of action for a single cap across the sector to start with.
Mr Pangallo said Mr Wilson didn’t even explain the formula that would be used.
“It’s just a horror story and we’ve heard from NSW that it’s gone for 40 years and they still haven’t got it right and we’ve had an experience of a council that was put into administration because it couldn’t control its debt,” he said.
“This is a policy that stinks and will just create another level of bureaucracy that we don’t need.”
Mr Pangallo’s opposition means it is only SA Advance’s John Darley who is currently supportive of the policy on the crossbench — Greens MLC Mark Parnell said his party still was vehemently against it.
Labor is still finalising its position on the policy after reassessing it but its local government spokesman Tony Piccolo said the amount of concerns he had meant he was “reluctant to recommend it to my shadow cabinet”.