Local Government (Rate Oversight) Amendment Bill

Second Reading

Adjourned debate on second reading.

(Continued from 26 July 2018.)

The Hon. I. PNEVMATIKOS (16:17): Today, I rise to speak on the Local Government (Rate Oversight) Amendment Bill 2018, which seeks to amend the Local Government Act 1999. I have been following this matter very closely and understand that local communities are calling for more transparency, accountability and efficiency from local government. They are concerned about the level of waste and rorts that appear to occur, whilst their rates continue to increase.

This is a serious matter and requires an extensive amount of consultation, which is why I have personally consulted with the community, including unions and employee organisations, engaged with local governments and associated organisations, met with employees from local government, and attended forums that discussed all perspectives on this matter. I have researched the matter enough to appreciate that there are serious concerns in our community that require real solutions.

The Liberal government's objective of a rate capping system barely scratches the surface of the fundamental concerns being raised in our communities. It is merely another example of misguided propaganda to sell a quick message without needing to be substantive. Who wants to pay more rates? This messaging was not open-ended, it did not invoke consultation, it merely exists to attract a momentum of support for the Liberal Party to push their agenda.

There was no discussion on what makes a community or what is important to our communities, and certainly did not invoke a discussion on the role a government should play to ensure that the services that make our communities vibrant are supported. There were no disclaimers that, by placing a cap, communities could very well experience a reduction in services, reduced investment in infrastructure and backlogs in crucial maintenance, as has been the case in neighbouring states that have this type of system.

The member for Schubert stated that this very bill is in line with the government's commitment to be transparent and independent in their programs and interactions with the community. Based on what we have seen so far, I would not describe this bill as transparent at all. We still have not been advised what the cap will be. In fact, at no stage throughout this debate has any rate or figure been suggested by the government.

I have read the Liberal Party's plan 'Capping your council rates' and I find it very telling that New South Wales was used as a contrast against South Australia. New South Wales was selected as it has had rate capping since 1977 and allegedly has the lowest council rates in the nation. Presumably this is attributable to the magic of a rate cap system. It is important to note that, based on ABS data between 2006 and 2016, South Australia had the second lowest increase in council rates in the country. We are not the poorest scoring state when analysing local rates.

What was neglected in the plan was that rate capping has not worked in New South Wales. It has proven to be both unnecessary and redundant, creating poorer outcomes for our communities. New South Wales is facing significant issues about infrastructure, and renewal backlogs. Forty-one years of rate capping has severely hampered the ability of councils in New South Wales to function and operate in terms of programs and services.

I rely on views expressed by Ms Linda Scott, president of the New South Wales Local Government Association, and Mayor David Clark, deputy president of the Municipal Association of Victoria, for both the New South Wales and Victorian experience of rate capping. The reality is rate capping has not worked. You were all welcome to hear this too, had you attended the Local Government Association's special meeting on this issue back in July at the Adelaide Town Hall. Some of my colleagues were there.

Rate capping is a real threat and will affect the most marginalised people in our community. In severe cases the overseas experience has led to privatisation of programs and services. If you knocked on anyone's door in the local community and asked if they would support having to pay a fee for access to their local library or any other services and programs provided by their local council, there would be an outcry.

I cannot stress this enough: this is an important issue and one the community feels strongly about. They want to see less waste, less secrecy and rorting, an end to extravagant perks and unnecessary travel interstate and overseas. People in the community want to see a vibrant, responsive and effective local council that services the interests and needs of the local community.

It is not acceptable to run an unsubstantive scare campaign for political gain just because you have a sharp slogan. This bill simply does not provide a definitive rate cap but merely adds another bureaucratic process by shifting the oversight of the rating system from ratepayers to an unelected administration, ESCOSA, the same regulators for our water rates and previously for our electricity.

It does nothing to tackle the core problems of council waste, secrecy and rorting. Proper engagement on the issue would have saved us all time to get to the point we have now reached. There are effective measures that can be implemented to protect ratepayers from cost-of-living increases, tackle local government rorts and waste, reduce council costs and hold local government to account. All of the reasons above are why I will not support this bill. I strongly encourage the government to come to the table to progress a real solution for this matter. SA-Best and the Greens are already here and we are working collaboratively to get the job done.

Debate adjourned on motion of Hon. T.J. Stephens.