Cost of Living

Mr ELLIS (Narungga) (14:57): My question is to the Minister for Transport, Infrastructure and Local Government.

Members interjecting:

The SPEAKER: The member will be heard in silence. Member, continue.

Mr ELLIS: Can the minister update the house on how the state government plans to lower the cost of living for all South Australians by introducing rate capping on council rates?

Members interjecting:

The SPEAKER: The member for Reynell is called to order.

Members interjecting:

The SPEAKER: The member for Kaurna is called to order.

Members interjecting:

The SPEAKER: The member for Lee is warned a second and final time.

The Hon. S.K. KNOLL (Schubert—Minister for Transport, Infrastructure and Local Government, Minister for Planning) (14:58): Rate capping is a policy that the South Australian Liberal Party has been prosecuting for five years now. It's something that we have, up hill and down dale, fought with to help the South Australian public understand this issue and help them to realise how important it is and what we can actually do to help fix this situation. Upon having been sworn in as the minister for this portfolio and having realised, very quickly, that this is going to be a major fight that is my job, on behalf of the cabinet and the party, to prosecute, the more information I have sought and the more important this policy has become in my eyes.

The real rub of this problem is the fact that when you look at what councils have done over the past decade in terms of rate increases, it is so out of step with where ratepayers think it should be and where households and businesses can actually afford to pay, that it is imperative that this parliament acts to enact rate capping. Over the past 10 years, to 2016-17, there was a 79 per cent increase in rates revenue over that 10-year period. Over the same time, CPI was only increased by 26 per cent. That is a huge differential, especially when you consider that state taxation only increased at basically the same rate as inflation over that same period.

Councils do, I think, spend money wisely, but there has to be a limit to the amount of money they can take out of ratepayers' pockets. Whilst there can always be good arguments for why governments of all persuasions need to spend money, the Liberal Party seems to be the only party that is willing to stand up and say enough is enough. There may be many worthy causes out there but, at the end of the day, sometimes people's pockets are empty. That is where the South Australian Liberal Party is stepping in to protect ratepayers from exorbitant increases—79 per cent is not okay.

In the 2017-18 year, the average is 6 per cent, whilst at the same time inflation is running at a third of that rate. This cannot be sustainable and over the longer term will further and further punish South Australian ratepayers. We also see instances of where council should probably look at tightening their own belt, whether it comes to golf memberships, whether it comes to expensive IT, whether it comes to expensive dining and wine—

Members interjecting:

The SPEAKER Order!

The Hon. S.K. KNOLL: —councils need to—

Members interjecting:

The SPEAKER: Order! Members on my left will remain quiet. The member for Lee is on two warnings.

The Hon. S.K. KNOLL: What I am really enjoying is how members opposite would love to stand up and say that a golf membership is okay.

The SPEAKER: Don't provoke, minister. Please continue.

The Hon. S.K. KNOLL: We have one half of this parliament that has for the past five years stood here and said that there is no argument for rate capping. What I want to know is why members opposite think it's okay that 6 per cent average increases for council rate revenue is okay.

Members interjecting:

The SPEAKER Order!

The Hon. S.K. KNOLL: Is it because they have never met a tax increase they didn't like? Whether it's the car park tax, whether it's the bank tax, or whatever else it is, this government will—

Mr PICTON: Point of order.

The SPEAKER: There's a point of order, minister.

Mr PICTON: Standing order 98: I think the minister has diverged—

Members interjecting:

Mr PICTON: 98.

Members interjecting:

The SPEAKER Order! For debate.

Mr PICTON: Mr Speaker, standing order 98: I think the minister has diverged into debate.

The SPEAKER: I think the minister was wrapping up his answer. Minister.

The Hon. S.K. KNOLL: He was. To bring the house up to date with where we are at, we have progressed very early stages of the legislation; actually, it is in the process of being drafted right now. As part of our 100-day commitment, we will bring this legislation to parliament within 100 days. What I would like to do, and what I have committed to the Local Government Association to do, is consult with them on that draft bill before we bring it into this place, time permitting. There will be many conversations that we are going to have. I know that this scheme is going to be made all the better from the input of the local government sector, as opposed to them sitting on the sidelines without it.