Councils Seek End To Limit On Rates
Sydney Morning Herald
Wednesday February 21, 2001
The cap on council rates should be abolished and councils, not the State Government, should have the power to set charges, a public inquiry heard yesterday.
Rate-pegging has emerged as a big issue at this week's inquiry into the future of eight inner Sydney councils, with South Sydney and Leichhardt councils calling on the Government to get rid of the current system. Both councils argued that local governments should control rates and be able to decide in consultation with their communities the amount to be imposed.
The Local Government Association has long blamed more than two decades of rate-pegging, with increased responsibilities at the third tier of government, for the financial restraints many councils face.
But a spokeswoman for the Minister for Local Government, Mr Woods, said the Government was committed to rate-pegging as it struck a balance between the needs of councils and protecting ratepayers from unnecessary increases.
Rate rises for 2000-01 were capped at 2.7 per cent.
The head of the inquiry, Professor Kevin Sproats, said yesterday that rate-pegging would be a significant part of the reform package he would be recommending to the Government.
Woollahra Council told the inquiry that a big obstacle in obtaining better value for money in services was flexibility in raising revenue.
While it opposed increasing rates, it said that under current rules it could not levy those who could pay more, such as retailers for streetscape upgrading and developers to ensure timetables were met.
Sydney City Council's boundaries came under attack, with some neighbouring councils, including Marrickville, calling for the council to be replaced with a Government department.
Marrickville's mayor, Councillor Barry Cotter, said local residents did not want to be gobbled up by a large CBD council.
``The City of Sydney is not set up ... to deal with true communities but is very focused on its planning role and the provision of services for people who do not reside in its area.
``Good governance is not just because you cut the grass and make sure the bins are only three-quarters full."
South Sydney's mayor, Cr John Fowler, said residents wanted to live near the city, not in it. A regional organisation to cover all eight councils with the legislative power to influence policy in areas such as planning and development could be set up.
But the Lord Mayor of Sydney, Cr Frank Sartor, accused the councils subject to the inquiry of having closed their minds to the reality of their problems.
The Premier, Mr Carr, said yesterday that Cr Sartor's expansion plans were not on the Government's agenda, but that it would wait to hear back from the inquiry at the end of next month.
But Woollahra's mayor, Cr Christopher Dawson, warned that under Cr Sartor's mega-council model bureaucrats would be on the front desk and elected representatives would be too remote.
``I am putting the Government and Sydney City Council on notice: You've heard the amalgamation battle so far wait until the real war. We are not cattle to be put into new paddocks."
© 2001 Sydney Morning Herald
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