LGA calls for calm among councils on rate capping legislation until key questions are answered

THE Local Government Association’s new president has written to member councils asking them to delay decisions on the state governments rate-capping legislation.

LGA President Sue Clearihan has asked council’s to hold off making a decision on rate capping for now.

• SA council rates cap plan legislation to be revealed
• Mayors call on LGA to offer rate capping olive branch
• Pangallo signals rate cap bill support if councils bend

THE Local Government Association is calling for calm among its member councils on rate capping.

President Sue Clearihan wrote to members yesterday asking for them to hold off making a decision on the recently introduced rate capping legislation by the State Government until they have the “full suite of information” on its impact.

But she has given an indication of some of the local government’s key concerns.

One was whether the decision by the Essential Services Commission of SA, which will be used by the State Government to decide the limit, can be appealed.

Ms Clearihan raised the issue writing to the state’s 68 councils ahead of a special meeting to examine the legislation, which Local Government Minister Stephan Knoll will be invited to.

The meeting would then arm councils with the information to decide whether to vote or reject rate capping laws and what the would “mean for them and their communities”, she said.

“Therefore I encourage you to hold off on making any immediate decisions regarding the Bill,” she said.

“It is hardly ever the case that what is introduced as a Bill in Parliament ends up being the same Bill that is passed – or rejected – at the end of the parliamentary process.”

Adelaide Lord Mayor Martin Haese and Port Adelaide Enfield mayor Gary Johanson earlier this week called on the LGA to work with the State Government on the laws.

Other local government concerns include the input of the Local Government minister in directing ESCOSA on what to consider to determine a rate cap and how the December timeline will impact on annual budgeting.

She also wrote that Labor was under significant pressure from the unions to reject the legislation.

The Advertiserthis week revealed that the selected model for rate capping will let local government raise extra revenue to cover the cost of new developments, a move the Government hopes will quell councils’ fears and providing stimulus for jobs and growth.

The cap would come into full force from July 1 next year.