By Melissa Cunningham
Whittlesea council says it is still assessing the possible impact of the state opposition’s pledge to cap rate bills at the consumer price index.
Mayor Mary Lalios was tight-lipped about the state Labor Party proposal announced last week. The council was also unable to reveal how much rates could rise in its 2014-15 budget, which will be unveiled on May 27.
Opposition leader Daniel Andrews has
promised the ALP will force councils to cap annual rates increases at CPI if it wins November’s state election.
Under the plan, councils wanting to increase rates above CPI would have to appeal to the Essential Services Commission (ESC).
As councils across Victoria finalise their budgets for the coming financial year, some
are reporting average rate bill increases of more than double the CPI (currently 2.9 per cent).
Hume council has proposed an average increase of 4.2 per cent.
But Municipal Association of Victoria president Bill McArthur said the long-term consequences of Labor’s plan could wreak havoc for generations.
“Rate rise restrictions leave councils with two main choices: reduce services relied on by communities or reduce capital spending to maintain assets,” he said.
“Councils could save more than half a billion dollars this year if ratepayers didn’t need to keep stepping in to rescue chronically under-funded state and federal services, including emergency management, home and community care, public libraries and kindergartens.”
Mr Andrews said the rate-capping policy sent a clear message to councils that any increases above CPI must provide clear benefits to ratepayers.
“With the cost of living increasing and Tony Abbott and Denis Napthine increasing taxes, home owners and businesses can have confidence that they aren’t footing the bill for wasteful or unnecessary council spending,’’ Mr Andrews said.
Broadmeadows Progress Association spokes- woman Sonja Rutherford said she doubted the ESC had the ‘‘teeth’’ to control rate rises. ‘‘The ESC has not been able to do much about gas, electricity or water price rises,’’ she said.
Under last week’s state budget, $2.5 million will be used for projects including the
development of a new website giving people the chance to see how their council rates are being spent.
Local Government Minister Tim Bull said ratepayers would be able to use the My Council website to see how their council compared to similar councils.
