Councils can’t treat people as milch cow

WHILE some experts are telling us we may be at the end of our economic woes, unemployment figures are still rising.

WHILE some experts are telling us we may be at the end of our economic woes, unemployment figures are still rising.

This means people are still hurting and the latest suggestion is that it may take about six years for employment to recover. It is a long time to be out of work.

In a region known for its high unemployment this only makes things tougher. Therefore, local councils wanting to raise rates need to proceed with caution. Councils across NSW are hurting financially, especially those like Lismore City Council that put money into collateralised debt obligation (CDO) investments and lost millions of dollars. But with unemployment rising can councils justify high rate hikes?

The State Government sets a rate-pegging limit for a reason – to protect residents and ratepayers from greedy councils.

Lismore City Council is thinking of going cap-in-hand to the State Government to ask for an increase above this cap to fund crucial projects. While one councillor suggested the outrageous increase of 6.6pc in 2010-11 on top of the cap, let’s hope other councillors show some better judgement.

Taking a gung-ho attitude to rate hikes in good economic times can be justified, but when your ratepayers are struggling prudence is required by councils. Of course, lack of funds is a big issue for
Lismore City Council right now, but it is also an issue for many of its ratepayers and local businesses.

As councillors can’t agree on how to spend any additional rates money, perhaps it is time to consult with the community to decide on what needs to be addressed, and what can be put on hold.

Originally published as Councils can’t treat people as milch cow