Rate Capping

Mr GRIFFITHS (Goyder) (14:37): My question is to the Minister for Local Government. Can the minister confirm his position on rate capping for council rates and, if opposed, can he outline his solution to the cost of living impact that increases above the local government cost inflation rate has on property owners?

Members interjecting:

The SPEAKER: The member for Morialta is right on the edge.

The Hon. J.W. WEATHERILL (Cheltenham—Premier) (14:37): This was a—

Mr Gardner interjecting:

The SPEAKER: I warn the member for Morialta for the second and final time, as he invites it.

The Hon. J.W. WEATHERILL: This was a topic of discussion in that happy period in the lead-up to the last 2014 election campaign—happy for some—and I can remember the debate vividly, because it involved the opposition proposing that there should be rate capping. Of course, there was an outcry by local government in relation to this question, because they naturally made the point that they are a sovereign sphere of government and they should be allowed to determine their own futures in relation to—

Members interjecting:

The Hon. J.W. WEATHERILL: I know that those opposite like to treat local government as the errant siblings of state government, but they make that point—they make that point strongly. They also made the other point that if there is rate capping applied, the effect of the rate capping would be to shift the demand for service delivery into the area of user pays.

What you see in the Eastern States where you cap rates is that the councils still have to provide services, so what they do is they charge for those services. Instead of using the relatively progressive means of raising revenue through the rating system, which we all know is, by any study, regarded as one of the most efficient ways of raising taxation, they instead have to move to a user-pays system which tends to disproportionately affect those constituents who rely on those services. In other words, those constituents, those members of our community who have lower incomes and who tend to disproportionately rely upon council services so—

Mr van Holst Pellekaan: Point of order.

The SPEAKER: Point of order.

Mr VAN HOLST PELLEKAAN: The Premier is not answering the substance of the question, which was: does he agree with the policy or not and if not—

The SPEAKER: No, I don't uphold the point of order. Premier.

The Hon. J.W. WEATHERILL: Thank you, Mr Speaker. I am addressing the substance of the question, sir, in explaining that those are the arguments that were advanced by the local government sector, that they strongly opposed rate capping and, of course, we joined them in that opposition in the lead-up to the last election, and our position has not changed. There's been no information that's been advanced by anybody since that time which has changed the position of our government. It certainly hasn't been debated inside our cabinet. We have not had cause to consider that. I do understand, though, that there was some species of an inquiry that was being undertaken, if I do remember, by—

An honourable member interjecting:

The Hon. J.W. WEATHERILL: It's still on foot. We would be very interested to see the results of the inquiry. We will obviously give that earnest consideration, but we have seen no material that's come before us at the moment which would cause us to change our position.

Members interjecting:

The SPEAKER: The member for Mitchell is warned and the member for Hammond is warned for interjecting out of his seat. The member for Kaurna.