Council rate cap: Minister Stephan Knoll warns Local Government Association to support Liberal pledge or face backlash

LOCAL Government Minister Stephan Knoll will on Friday confront council leaders with a pointed ultimatum – back the Liberals’ “mandate” for rate-capping or face a damaging public backlash.

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LOCAL Government Minister Stephan Knoll will on Friday confront council leaders with a pointed ultimatum – back the Liberals’ “mandate” for rate-capping or face a damaging public backlash.

He will address the Local Government Association’s ordinary general meeting, telling members they can help shape details of a State Government cost of living promise he intends to bring into law, or risk being left behind on a policy that has widespread support.

Council rate-capping has long been a Liberal Party pledge and would set a limit on how much rates could rise in a given year.

However, councils would be allowed to make a special application to an independent body to go above the cap in special circumstances.

The LGA launched a major advertising campaign ahead of the state election, in which it warned services could be cut if councils were not allowed to set their own rate rises.

Local Government Minister Stephan Knoll. Picture: AAP / Kelly Barnes

Mr Knoll said he was “absolutely committed” to a plan that would “ease cost of living pressures for households and businesses” and wanted councils to get on board.

“The sector now has a choice to make – either work with the new government to deliver these reforms or risk frustrating the process to the detriment of ratepayers,” he said.

“If the local government sector remains disengaged, it could lead to a poorer outcome for councils, damaging the sector, its reputation and ratepayers.

“This was a key policy that we took to the election and we intend to deliver on it to protect South Australian families and businesses from massive rate hikes.”

Independent Mt Gambier MP Troy Bell, a former Liberal, has said he will vote against rate-capping in Parliament and the move was a blunt tool that would tar all councils.

Local Government Association SA president Lorraine Rosenberg.

In a message to members ahead of Friday’s speech, LGA President Lorraine Rosenberg said she would continue lobbying all MPs to oppose any form of rate-capping.

“Reading the letters to the editor in The Advertiser and other regional papers since the election, I’ve noticed a slight shift in community perceptions of rate-capping,” she wrote.

“A number of these letters have highlighted the pitfalls of removing local decision-making, while others have pointed out how rate-capping has failed interstate.”

Labor has opposed rate-capping, but new Opposition Leader Peter Malinauskas has pledged a review of past positions as he embarks on a listening tour to understand voters’ concerns.

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Without Opposition support, Premier Steven Marshall would likely need to win over independent MP John Darley and two of the new SA Best MPs in the Upper House.

Mr Knoll said the Liberals had secured a clear electoral mandate for reform.

“The Liberal Party won the majority of the two-party preferred vote, a majority of seats and as a consequence have formed majority government – so we strongly believe we have a mandate to implement the policies we took to the election, including rate capping,” he said.

“I will again be inviting the sector to work with the new government to refine and help deliver the best possible rate capping scheme for both councils and ratepayers.”