Inquiry hears pushback against rate capping

THE introduction of rate capping is only three months away, but the state government proposal continues to draw resistance from groups that represent local government.
The parliamentary inquiry into the rate capping policy is taking written submissions, and the Municipal Association of Victoria (MAV) and Peri Urban Group of Rural Councils (PUGRC) – which includes the Surf Coast Shire – have both raised objections.
MAV president Cr Bill McArthur addressed the inquiry last week, saying the state had imposed a rate cap on councils to restrict their ability to raise revenue “and now it must also meet its shared funding obligations to local government. This is a fair and reasonable expectation”.
“Over a number of years, councils have been working hard to introduce smarter ways of doing business in a more cost effective way to introduce smarter ways of doing business in a more cost effective way to reduce the financial burden on ratepayers. This includes internal restructures, shared services, and collaborative procurement. But resources can only be stretched so far.
“Councils receive just three cents of every tax dollar collected, with the rest going to other levels of government.
“Doing more with less is unrealistic when your whole existence relies on a cap-in-hand approach to ratepayers to bolster under-funded state services.”
He said shared state-local government funding must be restored for services that governments were jointly responsible for, such as public libraries, maternal and child health, and school crossing supervisors.
For example, Cr McArthur said public libraries used to be funded 50:50 but had now shifted to councils contributing 83 per cent and the state 17 per cent.
In its submission, the PUGRC stated its member councils managed large municipalities, with population densities seven times lower than interface councils and regional cities, and smaller budgets.
“PUGRC total budgets are one quarter the size of the regional cities of Geelong, Ballarat and Bendigo.
“In fact, Geelong’s garbage charge is equivalent to our average total rate base.”
Written submissions to the inquiry close on April 1.