State Government rejects plan to cap council rates

PLANS to cap council rate rises and force mayors to defend their spending plans in front of an independent watchdog have been knocked off by the Labor majority in State Parliament.

Local Government Minister Geoff Brock was against the rate capping plan. Picture: Tom Huntley

PLANS to cap council rate rises and force mayors to defend their spending plans in front of an independent watchdog have been knocked off by the Labor majority in State Parliament.

Local Government Minister Geoff Brock, a former mayor of Port Pirie, said he was so opposed to the plan he demanded it be written into his agreement to help Labor form government.

“Rate capping arouses a level of popular support, particularly if the debate is pitched merely at the question of whether or not the public might like council rates to be low,” he said.

“I share the concerns of other members in this place about cost of living pressures.

“However, when the consequences for communities of such a policy are fully considered, it will be seen by many as a less desirable approach to ensuring an appropriate balance is struck between council revenue raising and expenditure.”

Mr Brock said higher rates were needed to pay for important services.

“It is my view that councils, as a tier of government, should be held accountable to their electors, and not to an unelected external administrative body,” he said.

“Councils need to have open conversations with their communities about how they will address the needs and the interests of the community through their council’s rating policy.”

Opposition councils spokesman Steven Griffiths, a former local government chief executive, said the sector could be made much more efficient with more external oversight.

“While councils have complained to me that I am impacting upon their revenue opportunity ... the legislation is going to create an opportunity to review their expenditure,” he said.

“I want their expenditure to be efficient to ensure that ... rate income per year is used in the absolute best possible way and that the winners from this discussion are the people of SA.

“That is what this chamber exists for, that is what this Parliament is here for.”

Local Government Association President Dave Burgess said rate capping was a blunt tool.

“Rate capping is a retrograde policy which has failed communities around Australia, and we are pleased the Government has shown its support for SA families by rejecting this Bill,” he said.

“This Bill is an unnecessary diversion from the real issues facing our state.

“South Australians have benefited from a good working relationship between local government and the state government of the day, but the implementation of rate capping would fundamentally change the dynamic of this relationship to the detriment of communities

“Based on interstate experiences of rate capping we have no choice but to continue to fight its implementation in SA for the benefit of the communities we represent.”