NEWS DESK
Summer tourism parking ‘could raise $10m’ Mike Hast mike@mpnews.com.au MORNINGTON Peninsula Shire could earn up to $10 million a year if it charged tourists to park their cars during the summer season. The suggestion comes from a member of a peninsula ratepayer group as councils around Victoria face the prospect of lower rate income under a state government plan to cap rate rises. The government announced earlier this year that councils would have to show "special circumstances" if they wanted to increase rates by more than the cost of inflation. So-called rate capping will be introduced for the 2016-17 financial year, and the shire will have to find new sources of revenue to maintain or increase services. Mornington Peninsula Ratepayers' and Residents' Association member Joe Lenzo said he had been advocating charging for car parking for five years. "Our rates pay for many services used by summer visitors and daytrippers," he said. "It's time to look at recouping some of this cost." About two million cars come to the peninsula each season and $5 a day per car would put $10 million in the kitty, he said. Such a fee was common in several Melbourne bayside municipalities and was standard practice in many EuroParking bonus: One idea to increase shire revenue is to charge tourists for car parking. Picture: Yanni
pean tourism cities. Ratepayers would receive two car parking stickers with their rate notices, enabling them to park free of charge. Extra stickers for households with more than two vehicles would be charged at a nominal rate. Tourists could purchase daily, weekly, fortnightly, monthly, quarterly or annual permits. "Obviously there is much detail to be worked out. The shire could form a profit-sharing partnership with one of the big city parking companies so capital expenditure to set up the scheme with its parking machines, signs, etc could come at minimal cost to ratepayers." He said other revenue sources might include upping camping fees. "Harm done to tourism would be minimal as the peninsula will always be a popular destination for Melburnians and it would still be an affordable holiday." Last summer saw a record number of campers in the shire with people staying during the so-called shoulder periods either side of peak periods increasing by 25 per cent in comparison to the previous year. There was a record occupancy of 112,000 nights. The shire charges $550 per site between 25 October and 20 December, and $995 between 31 January and 26 April. During peak season, sites with power cost $290 a week and $135 offpeak. Ratepayers' association president Alan Nelsen told The News "it was an interesting proposal but the association would want to see more detail before adopting it".
Rate cap 3% for 2016–17 THE Essential Services Commission’s “Local Government Rates Capping and Variation Framework Review” was released late last week and recommended that the rate rise cap be based on 60 per cent CPI and 40 per cent wage index calculation. The latter figure would be calculated by the State Treasury based on the previous financial year’s figures. The cap for 2016-17 would be 3.05 per cent, 2.85 per cent for 2017-18 and 2.8 per cent for 2018-19. The commission reiterated that councils could apply for special dispensation to increase rates above these figures but would have to make a very strong case to do so. Waste charges are not included in the cap. One local government observer told The News that “smart CEOs would look at many other ways to increase income as the rate cap bites deeply”. “Rate capping may end up a waste of time as councils including the shire have more than 200 other charges that could be increased.” Over the past 10 years, shire council rates have increased by more than 100 per cent, which is more than the increase in the cost of nearly all other household goods or services incurred by Victorians, said ratepayer group president Alan Nelsen. Dr Nelsen said the increase was “three times more than the cost of living (CPI), twice the actual increase in costs incurred by councils, twice the increase in wages, about double the the increase in age pensions for couples, and the fourth highest increase of 40 household expenditures measured by the Australian Bureau of Statistics”. See “Rate cap may not quell cash demand” Page 12
BURDETT’S
THE LARGEST LANDSCAPE PRODUCT RANGE IN THE SOUTHERN HEMISPHERE
•CONCRETE MIX •EXPOSED AGGREGATES •SANDS & SOILS •CRUSHED ROCK/ SCORIA
SERVICING FRANKSTON & THE PENINSULA SINCE 1974
Burdetts HOUSE & GARDEN SUPPLIES
•ROCKS & PEBBLES
...AND MORE COME SEE OUR RANGE OF POLISHED CONCRETE ON DISPLAY 615 McClelland Drive, Langwarrin Ph 9789 8266 Fax 9789 8810
www.burdetts.com.au
OPEN 7 DAYS A WEEK Mornington News 27 October 2015
PAGE 11