A proposal by the Victorian Labor Party to cap rate rises in line with the consumer price index and force councils to justify increases above that has received little support.
Earlier this month, state opposition leader Daniel Andrews said that under a Labor government, councils wanting to raise rates above CPI would have to appeal to an independent Essential Services Commission and explain any rate 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. “The days of ratepayers footing the bill for Arnold Schwarzenegger impersonators are over.
“This policy also sends a clear message that we expect councils to keep their rates in line with CPI. Any increases above this must provide a clear benefit to ratepayers.”
But the Municipal Association of Victoria slammed the idea, saying it was a “destructive policy” that at first glance may seem appealing to ratepayers, but it would have devastating long-term consequences.
Association president Bill McArthur said Mr Andrews had effectively endorsed a failed Kennett reform that hurt ratepayers for two decades and was a key factor in rate rises brought in to address crumbling community infrastructure.
“This shortsighted Labor policy to gain voters will wreak long-term community pain for all Victorians,” Cr McArthur said.
Melton City Council chief executive Kel Tori supported the association’s view.
“The capping of rates didn’t work in New South Wales and it won’t work in Victoria,” Mr Tori said.
“The City of Melton is a growth area with significant infrastructure and service delivery demands. If Melton council had to cap the rates at CPI it would not be able to deliver on the community’s expectations.”
Melton Residents Association president Peter Rowan criticised the proposal, saying Labor was “chasing votes” with promises it couldn’t keep.
“The Labor Party itself has done very little for the western suburbs,” he said. “It seems that because it’s a safe seat nothing is done.”
Cambridge, Coburn and Watts Residents Association president Nathan Miles welcomed the proposal, saying it was time that rates were capped.
“It needs to be capped – I’ve been saying this for 12 months,” he said.
“There needs to be a total review of all services; what the council is responsible for and what the state government is responsible for.”
