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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2013-11-27 Daily Xml
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LOCAL GOVERNMENT (RATES) AMENDMENT BILL

Second Reading

Adjourned debate on second reading.

(Continued from 28 November 2012.)

The Hon. G.A. KANDELAARS (01:12): I rise on behalf of the government to indicate that we will be supporting this bill.

The Hon. R.I. LUCAS (01:12): The Liberal Party supports the bill.

The Hon. J.A. DARLEY (01:12): At the outset I would like to thank the government and the opposition for their support for this bill. In particular I would like to thank the Attorney-General, Mr John Rau; the member for Goyder, Mr Steven Griffiths; and the Leader of the Opposition, Mr Steven Marshall, in another place, for their commitment to this issue.

Above all I would like to thank the member for Port Adelaide, Dr Susan Close, for her unwavering support for this bill. I know that this is a matter that hits very close to home in her electorate of Port Adelaide, and her persistence in getting the government to agree to the bill has been most valued. I would also like to thank Mr Liam Golding, adviser to the Attorney, and Ms Kim Meier, adviser to the member for the Goyder, for all their hard work.

There is no question that there has been a lot of toing and froing over the final form of the bill, but I am extremely pleased that common sense has finally prevailed and that on this issue at least we have been able to find some common ground. It is not as common an occurrence as most of us would like to think. All parties would have to agree that in this instance it was the right outcome.

Finally, I would like to thank Mr Craig Evans from the Cruising Yacht Club of South Australia, Mr Glen Jones from the Boating Industry Association of South Australia, Mr Wayne Phillips from the Royal South Australian Yacht Squadron and Holdfast Quays, and Mr Andrew Smiles from the Refuge Cove Marina, not only for bringing this matter to my attention and entrusting me to see it through to the end, but also for their continued support and tireless lobbying.

As I mentioned during the second reading debate, there is absolutely no justification for rating marina berths and hard stands based on occupation. There are no services being provided on these individual pieces of land, and councils are not recouping any costs in any way.

The existing rating system is and always has been nothing more than a revenue-raising exercise on the part of councils at the expense of boat owners. Any argument that local residents are subsidising wealthy boat owners is completely unwarranted. There is no question that councils have been given ample opportunity to address this issue without the need for legislative change, but unfortunately those directly impacted by these changes have been unwilling to play ball.

I note that the member for Port Adelaide has tried countless times to have the matter resolved in her own electorate under the existing legislative framework without success. Under the circumstances, it is therefore only appropriate that we take the steps that we have to ensure that boat owners are no longer disadvantaged by way of comparison to other ratepayers.

Just by way of clarification, honourable members will note that I intend to move a number of amendments to my bill to reflect the outcome of ongoing negotiations with the government and the opposition on this issue. There were several options available in terms of dealing with this issue, some more difficult than others. The amendments reflect a much more straightforward approach. In a nutshell, they provide that marina berths are to be treated in the same way as caravan parks and residential parks for rating purposes.

Section 152(2) of the act specifically prevents fixed charges from being applied to caravan parks and residential parks. The amendments broaden the scope of those provisions to also include each marina berth within a marina. Further, the act allows councils to use a differential rate basis or a general rate basis for rating purposes. I am advised that all but one council use a differential rate basis as opposed to a general rate for rating purposes. That being the case, it was important that the bill enable them to continue to do so, but within limits so as to reflect the intent of the first amendment.

Those limits are that, in relation to marina berths, the amendments provide for the use of a differential rate only in cases where it does not exceed the amount that would have been payable if the land in question was used for commercial purposes. The term 'commercial purposes' is then defined. The amendments also make it clear that section 158, which enables councils to fix a minimum amount payable by way of rates or charges, or alter the amount that would otherwise be payable by way of rates in respect of land that falls within a range of values determined by the council, does not apply to rateable land consisting of a marina or marina berth.

There is no doubt that the approach adopted still resolves the issue of boat owners. It will ensure that they are rated appropriately for their marina berths by bringing to an end the exorbitant revenue-raising exercise of councils in relation to those berths. Just by way of final clarification, I should inform honourable members that some time ago I agreed to deal with the issue of the basis of differential rates for vacant land separately to the issue of marina berths. As the bill currently stands, it deals with both issues.

During the committee debate, I will be proposing that clause 3, which deals with vacant land, be struck out of the bill. The net result is that virtually all of the substantial provisions of the bill will be replaced by the amendments that I have proposed. I know this is not the most ideal way of dealing with a bill, and I seek some indulgence with respect to that. With those few words, I look forward to a speedy passage of the bill.

Bill read a second time.

Committee Stage

In committee.

Clauses 1 and 2 passed.

New clause 2A.

The Hon. J.A. DARLEY: I move:

Amendment No 1 [Darley–3]—

Page 2, after line 7—Before clause 3 insert:

2A—Amendment of section 152—General rates

(1) Section 152(2)(ba)—after subparagraph (ii) insert:

or

(iii) each marina berth within a marina;

(2) Section 152—after subsection (5) insert:

(6) In this section—

marina means a facility comprising pontoons, jetties, piers or other structures (whether on water or land) designed or used to provide berths, moorings or dry storage for vessels;

marina berth means a piece of rateable land within a marina—

(a) used for the berthing or mooring of a vessel; or

(b) used for the dry storage of a vessel (commonly known as a hard stand);

Section 152 of the Local Government Act deals with general rates. It provides that a general rate may be a rate based on the value of the land subject to the rate, or be a rate that consists of two components, one being based on the value of the land subject to the rate and the other being a fixed charge. Subsection (2) goes on to provide that a fixed rate cannot be imposed against each site in a caravan park or each site in a residential park within the meaning of the Residential Parks Act 2007. The amendment seeks to broaden the scope of those provisions to also include marina berths within a marina. This would prevent councils rating marina berths based on occupation.

New clause inserted.

Clause 3.

The Hon. J.A. DARLEY: I move:

Amendment No 2 [Darley–3]—

Page 2, lines 8 to 24—Delete the clause and substitute:

3—Amendment of section 156—Basis of differential rates

(1) Section 156—after subsection (4) insert:

(4a) Despite subsection (4) but subject to subsection (5a), the use of land as a marina berth is declared to be a permissible differentiating factor for the purposes of this section.

(2) Section 156—after subsection (5) insert:

(5a) Despite any other provision of this Act, the use of land as a marina berth cannot be used for the purpose of the declaration of differential rates that exceed the rate that would have been imposed were the land being used for commercial purposes.

(3) Section 156—after subsection (15) insert:

(16) In this section—

commercial purposes—land is to be used for a commercial purpose if the land is to be used for—

(a) a shop (within the meaning of the Development Regulations 2008); or

(b) an office (within the meaning of the Development Regulations 2008); or

(c) any other commercial use of land not referred to in the categories specified in paragraph (a) or (b).

As already outlined, section 156 of the act provides for the use of differential rates according to the use of the land, the locality of the land, the locality of the land and its use, or on some other basis determined by the council. I am advised that all but one council currently use a differential voting basis, as opposed to a general rating basis, for rating purposes. It is not possible to use both. This applies to marinas as much as it does to other rateable land. Given that that is the case, the amendment seeks to enable councils to continue to use a differential rating basis for marina berths provided that it does not exceed the amount that would be payable if the land in question was used for commercial purposes.

Commercial purposes land is defined as land that is to be used for a shop within the meaning of the Development Regulations 2008 or an office within the meaning of the Development Regulations 2008 or any other commercial use of land not already referred to. As I have already mentioned, this amendment is entirely consistent with the intent of the bill and certainly provides an easier way forward than what was initially proposed. It still addresses the concerns of boat owners with respect to paying rates in excess of the value of their land.

Amendment carried; clause as amended passed.

Clause 4.

The Hon. J.A. DARLEY: I move:

Amendment No 3 [Darley–3]—

Page 3, lines 5 and 6 [clause 4, inserted subsection (1a)]—Delete:

'section 158A' and substitute 'section 152'

Section 158 of the act enables councils to fix the minimum amount payable by way of rates or charges or to alter the amount that would otherwise be payable by way of rates in respect of land that falls within a range of values determined by the council. This amendment seeks to make it clear that these provisions do not apply to rateable land consisting of a marina or a marina berth. It prevents councils from trying to overcome the restrictions imposed through the first amendment that was moved. I commend this amendment to the committee.

Amendment carried; clause as amended carried.

Clause 5.

The Hon. J.A. DARLEY: I move:

Amendment No 4 [Darley–3]—

Page 3, line 7 to page 4, line 20—Delete clause 5

Again with the support of the government and the opposition, it was decided to adopt the more simplified approach for dealing with the issue of rating policies for marina berths. This measure has therefore been superseded by the former amendments that have been proposed.

Amendment carried; clause deleted.

Title passed.

Bill reported with amendment.

Third Reading

The Hon. J.A. DARLEY (01:29): I move:

That this bill be now read a third time.

Bill read a third time and passed.

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