Marshall Govt scraps push to cap council rates in new local government plan
A plan to let the local government minister cap council rate rises has been abandoned, as the State Government faces accusations of scrapping a key policy that helped get it elected.
SA News
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A key pre-election pledge to introduce a cap on council rate rises has been scrapped by the State Government.
Local Government Minister Vickie Chapman has this week brought a new council reform plan to State Parliament. However, it does not include the ability for the government to limit increases in council rates, as promised in the lead up to the 2014 and 2018 elections.
Ms Chapman inherited the troubled signature policy – to drive down the cost of living – from her predecessor Stephan Knoll after he resigned in July over the country MPs’ travel scandal. Her package includes a range of reforms to improve council standards and requires them to consult with independent experts on their budgets.
“Labor opposed rate-capping tooth and nail from the moment we announced the policy and have refused to respect the wishes of the majority of the electorate,” Ms Chapman, pictured, said.
“As result of Labor and the crossbenchers blocking rate capping legislation in the Parliament, the State Government has proposed an alternative mechanism to protect homeowners from rampant rate rises. Labor should stop playing politics with rates and support the government.”
Opposition local government spokeswoman Jayne Stinson said Labor had been willing to offer “qualified support” for rate capping, before the government “walked away” from its own plan.
“Rate capping is dead, and the Marshall Liberal Government killed it,” Ms Stinson said.
“Steven Marshall and Vickie Chapman have abandoned their pre-election promise to cap council rates.
“The Liberals have now watered down their Bill to the extent there’s now no legally enforceable cap on council rates, and the (local government) minister can’t direct rate reductions.”
The Opposition has previously floated its own council reform package to crack down on perks for staff and force more public oversight of spending plans and rate increases.
The government’s new plan will still require that feedback on spending plans given by the Essential Services Commission of SA is considered and made public.
Mr Knoll’s earlier attempts to implement a rate cap scheme failed in the Upper House, as councils complained it was a blunt tool that ignored the unique needs of local communities. SA Local Government Association president Sam Telfer said councils had been calling for “sensible and effective” reform for many years to increase transparency for ratepayers.
“However, we have consistently opposed bad public policy that would cost money, create more red tape and provide no benefit to ratepayers,” Mr Telfer said.
“This Bill introduces a new scheme for independent oversight of local government financial management, without encroaching on local decision making.”