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Tuesday 13 May 2014
MPNEWS (1300 676 397) or email: team@mpnews.com.au www.mpnews.com.au
Looking back ISOBEL Driscoll, 87, and daughter Karen Porter attended Rosebud Primary School’s 130th anniversary celebration this month. The mother and daughter are both former pupils of the school. Ms Driscoll attended the school in 1938-42 and Ms Porter was a student there in 1961-67. See page 8. Picture: Yanni
Plan to cap rates ‘farce’ By Chris Brennan A LABOR Party plan to force councils to cap annual rate rises at or below the level of inflation has been labelled a “farce” that if implemented would hit vital services and infrastructure. Mornington Peninsula mayor Cr Antonella Celi joined a chorus of criticism against the ALP proposal, warning any move to cap local government rates would result in a “significant reduction in the delivery of quality infrastructure and services provided to our local community”. Opposition leader Daniel Andrews said last week that, under a Labor state
government, Victorian councils would be forced to cap annual rate rises in line with the Consumer Price Index. Under the current system, councils are free to raise rates as they see fit, with strict budget transparency protocols and the potential wrath of ratepayers at the voting box keeping rises in check. But council rate hikes usually far exceed inflation. Shire rates last year increased by an average of 5.9 per cent, more than double the inflation rate of 2.9 per cent. The council has budgeted a further 5.9 per cent rise for 2014-15. The current CPI figure is 2.7 per cent.
Mr Andrews said that if the ALP won the election, any council wanting to increase annual levies charged to property owners and businesses at levels exceeding the official rate of inflation would have to justify the rise to an independent Essential Services Commission. The ALP policy sent a “clear message that we expect councils to keep their rates in line with CPI, any increases above this must provide a clear benefit to ratepayers”, he said. “Under Labor, councils will be forced to limit rate rises and detail where every dollar will be spent, because ratepayers
deserve a fair go,” he said. However, Cr Celi said a similar cap on rates in place in the 1990s had proven disastrous and had been dumped as a result. “Many councils simply didn’t have enough money to adequately invest in the maintenance and upgrading of community infrastructure and to meet the continually rising expectations of their communities,” Cr Celi said. “More than a decade later, many still haven’t closed the infrastructure renewal gap. Fortunately, Mornington Peninsula Shire has.” Member for Mornington and Parlia-
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mentary Secretary for Local Government David Morris agreed restrictions on councils’ ability to set rates was the wrong approach to reigning in spending. “It’s a very blunt instrument and it doesn’t work,” Mr Morris told The News. “What tends to happen if councils are forced to cut back cost is they go for the low hanging fruit – capital works get wound back, peripheral services get cut and lower profile programs that are often there to help more vulnerable members of the community are the ones to suffer budget cuts.” Continued on Page 10
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