State Government plan to cap council rates causing job losses, wage cuts, union warns

COUNCILS are reducing job opportunities in anticipation of the State Government’s rate capping pledge, the union representing local government workers has warned.

• Minister warns of backlash if LGA doesn’t support rate cap
• SA council rates rise at almost three times rate of inflation

COUNCILS are reducing job opportunities in anticipation of the State Government’s rate capping pledge, the union representing local government workers has warned.

The Australian Services Union saysit will lobby crossbenchers to vote down rate-capping legislation, which is expected to hit Parliament in coming months.

Union state secretary Abbie Spencer said rate capping would have a significant impact on the local government workforce of about 8800.

“It’s already being cited in enterprise bargaining negotiations as the reason why councils are increasing casual and insecure contract work instead of employing people in full-time jobs,” she said.

SA local government minister Stephan Knoll. Picture: AAP / Kelly Barnes

“It’s also being used by some councils as the reason why ASU members should accept wage increases that don’t keep up with day-to-day cost of living pressures. ASU members will be seeking meetings with all crossbenchers in coming weeks to lock in the position they took to the election.”

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.

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

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

Ms Spencer said in other states rate capping had led to cuts in services, reduced infrastructure investment and maintenance backlogs.

“Ratepayers end up having to pay extra for services that were once funded by their council rates,” she said.

Local Government Minister Stephan Knoll disagreed.

“The rate-capping policy is about protecting South Australian households and businesses from unjustified rate hikes,” he said.

“There’s no shortage of examples of unnecessary waste in the local government sector and councils should look to tighten their own belts in the first instance. It’s been widely reported that ratepayers’ money has been wasted on golf memberships, luxury cars, Apple watches and unnecessary overseas trips.”

Local Government Association president Lorraine Rosenberg said rate capping could result in cuts to council staff and services including community events, tree planting, aged care services, libraries and waste transfer stations.

Those service cuts were in addition to the deferral or cancellation of new capital works and planned infrastructure improvements.