Libs set to recommit to rate cap
Opposition Leader Steven Marshall has told a forum of metropolitan council CEOs the state Liberals are set to retain their controversial policy of imposing a local government rates cap, if elected.
While the party is yet to formally recommit to the policy it took to last year’s state election, Marshall told InDaily his message to council administrators was “it’s unlikely we’d move away from our position regarding rate capping”.
“I was just upfront and honest with them – we’re unlikely to change our position,” he said.
“At the end of the day, our philosophy as a party is for lower taxes, fees, charges and rates… We haven‘t reiterated our position ahead of the next election (mandated for March 2018), but we as Liberals believe in a lower cost environment.”
He insisted the Liberals would “apply the same rigour to ourselves as a state government” if they win the 2018 poll, but admitted local government was “violently opposed” to any whiff of rate capping.
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The Local Government Association last year described the Liberals’ policy as “ill-considered and populist”, warning it would “put community services at risk”.
Matt Pears, chair of the metropolitan CEOs local government group, was present at the forum and told InDaily Marshall “certainly indicated that the Liberals were committed to lowering council rates”.
“There was a lot of discussion around what that meant … a number of CEOs commented on the need for local communities to make local decisions,” he said.
“There also discussion (that) simply rate capping in of itself was not going to lead to more efficient councils, and could lead to a reduction in essential services.”
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Pears said some CEOs had argued that “the NSW experience was that rate capping was detrimental to local communities”.
A glut of Sydney councils have applied for “special variations” to their cap, which is set by an Independent Pricing and Regulatory Tribunal.
But Marshall insists “we’re not advocating the NSW model, which had to build an efficiency dividend” and saw council revenues progressively reduced.
“We’re looking to preserve the current rate arrangement, and talk to them about exemptions if they have a long range capital plan,” he said.
He said the existing model, which demands councils “consult” with ratepayers on their annual business plan, “doesn’t provide the rigour that’s required” as the process is “very poorly attended”.
“You can get rid of the term ‘rate-capping’ but we want some mechanism in place to ensure any increase in the rate is justified, because we want to lower costs for businesses and households,” Marshall said.
Pears said much of the discussion also centred on job creation and developing the SA economy, with Marshall confiding he was “now of the view that Local Government had a role to play” in terms of international engagement, economic infrastructure and the broader planning system.
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