Local Government Minister Stephan Knoll calls for council elections to be ‘referendum’ on rate capping
LOCAL Government Minister Stephan Knoll has made a bold intervention in the upcoming council elections, saying they should become a “referendum” on his controversial rate capping policy and urging voters to back candidates who support it.
LOCAL Government Minister Stephan Knoll has made a bold intervention in the upcoming council elections, saying they should become a “referendum” on his controversial rate capping policy and urging voters to back candidates who support it.
Ratepayers will cast their votes in November, and the Government legislation is currently stalled in the Upper House as key crossbench MPs back the claims of incumbent councils that a cap would harm service delivery.
Labor remains on the fence, but says it will come to a formal position on rate capping when Parliament returns from its winter break following the September 4 State Budget.
Mr Knoll told The Advertiser: “The upcoming council elections should be a referendum on rate capping”.
“I would urge SA ratepayers to support candidates that support rate capping,” he said.
“The overwhelming majority of SA ratepayers want their council rates capped and the upcoming council elections are a chance for the community to back candidates who will back them.”
The move is likely to spark a backlash from councils, which have voted not to support Premier Steven Marshall’s key election pledge and ferociously guard their independence as a third and distinct tier of government.
Mr Knoll said he “makes no apologies for standing up for the mums and dads, small businesses and community groups who are crying out for cost of living relief”, while also attempting to turn up the heat on Opposition Leader Peter Malinauskas.
“We are unashamedly standing up for ratepayers who have become the lost voice in this debate,” Mr Knoll said.
“Peter Malinauskas must show some leadership and back our rate capping plan immediately. “If Peter Malinauksas continues to stand in the way of rate capping, then he should be held responsible for every exorbitant council rate hike to hit SA households and businesses.”
State Government analysis released previously has shown council rates have risen at three times the rate of inflation over the past decade.
The same analysis showed they had also risen much more steeply than State Government fees and charges. Another analysis released by the State Government has found a cap set at inflation a decade ago would have cut almost $500 from average rates bills this year.
Last week, the Local Government Association delivered a resounding vote against the rate capping plan.
LGA acting president Sue Clearihan said the response from the state’s 68 councils sent a very strong message that capping rates would leave communities worse off. Three councils supported the legislation, nine failed to respond and two did not take a position.
“Basically we have this very clear message from our members that there is no documented evidence that what the government is proposing will result in any efficiencies,” she said.
A poll commissioned by the Property Council, also released last week, found 77 per cent of respondents supported a cap that would “stop large rate increases”. Only 5 per cent were opposed to rate capping, while the remaining 18 per cent were neutral.
That included 85 per cent of SA Best supporters saying they supported a rate cap. SA Best opposed the plan during the state election campaign this year, and has become arguably the staunchest opponent of the legislation in State Parliament.
SA Best MP Frank Pangallo said most people would support a rate cap until they considered the impact on services.
“Of course everyone is going to say ‘yes’ if they think they’re going to save,” he said. “If you try and explain to them the likely consequences of a reduction in services and issues with backlogs, I’m sure they’ll have a think about it.”
The Greens also oppose the rate cap, meaning Labor’s position is likely to be decisive.
When the legislation was debated in the Lower House last month, Opposition councils spokesman Tony Piccolo said: “We are engaging with a whole range of people … to make sure that we get a full picture and understand the impact of rate capping before we declare our hand,” Mr Piccolo said. “We will be in a position to declare our position by the time the bill hits the Upper House for debate.”
Voting in council elections commences in late October by post, with counting to begin on November 10.