Melton City Council would be stripped of more than $32 million in state government funding over three years under Labor’s proposed council rate cap.
Local Government Minister Tim Bull, who released the figures, said residents living in Melbourne’s outer suburbs, such as Melton, would face severe cutbacks to services and deteriorating infrastructure under what he labelled “Labor’s flawed local government policy”.
The figures released last week by Mr Bull show the Melton council would lose $32.5 million in the first three years of state Labor’s policy covering 2015-16 to 2017-18.
In May, Opposition Leader Daniel Andrews announced a state Labor government would force councils to cap their rates to match the Consumer Price Index (CPI) and justify any further increases.
“Under Labor, councils will be forced to limit rate rises and detail where every dollar will be spent, because ratepayers deserve a fair go,” Mr Andrews said at the time.
Mr Bull said the community would suffer, and many services would be at risk under Labor.
“Labor’s rate cap might seem like a snappy line for the media, but who is going to maintain and build local roads, provide new sports grounds and community facilities, deliver meals and services to the elderly and assist new mums and dads with their babies?” Mr Bull said.
Municipal Association of Victoria president Bill McArthur also slammed the policy, describing it as a “spectacular own goal” that seemed appealing for ratepayers but would have long-term, adverse consequences for generations.
Melton council acting chief executive Luke Shannon said the council supported Cr McArthur’s views.
“The City of Melton is a growth area with significant infrastructure and service delivery demands,” Mr Shannon said.
“If Melton City Council had to cap the rates at CPI it would not be able to deliver on the community’s expectations.”
Melton Labor MP Don Nardella said any claims council would be worse off under the policy were “rubbish”.
Mr Nardella said councils could still increase rates above CPI if they could justify it.
“Why should you be charged more if the council can’t explain to an independent umpire why the rates should go up?” he said. “I think Melton and Moorabool councils would be able to justify their increases,” he said.
“Melton is a growth council and can justify increases through its capital works, through programs and infrastructure.”
“If they can justify it, it’s not an issue.”
