Minister misrepresents real costs for councils of rate-pegging

“The Minister for Local Government, Barbara Perry, has announced the rate-peg will be set at 2.6% for 2010-2011,” said Ms Hale.

“Councils, however, face an expected CPI rise of 2.1%. In effect what the Minister is saying is that rates can increase in real terms by only 0.5%.

“Councils are already bearing the burden of an estimated $431 million worth of costs that the State and Federal governments shifted to councils in 2007-2008.

“Additional costs have been imposed on Councils, which are now required to find extra money to pay for upkeep of roads, management of dangerous dogs, inspection of restaurants and cafes, an increase in the fire levy, funding 50% of rebates for pensioners, medical services in country areas, administration of contaminated land issues, and the list goes on.

“Local Government is also expected to bear the huge cost increases for water and electricity as a result of the State Government ramping up charges in the lead up to privatisation.

“Energy Australia have increased its charges by 30% to local governments in inner Sydney in the last year, and the State Government has given no protection to ratepayers from this profit gouging.

“Similarly Section 88 dumping charges have been increased way above inflation as the Government prepares to sell off Waste Services NSW.

“At the same time the government has reduced the ability of councils to levy developments. This has further reduced council’s income.

“The United Services Union will be seeking pay rise for council employees – so councils will also have to budget for that, and many Councils have 3% yearly wage rises already agreed to.

“Government says local government must take responsibility for itself, yet the Minister wants to cap rates to a real rise of less than half a percent.

“While it is quite proper for there to be pressure on every level of Government not to waste money, as a result of rate-pegging local government rates in NSW are among the lowest in Australia and the backlog of capital works across NSW grows every day.

“As we saw with the road collapse that killed a family on the old Pacific Highway near Gosford, local government cannot afford essential maintenance work. That failure may see more people killed and injured as services and maintenance continues to decline.

“The Minister need to give councils a fair go so councils can provide adequate services to their residents,” concluded Ms Hale.

Contact: Colin Hesse 02 9230 3030 or 0401 719 124