Signs have been erected at strategic spots in the Brighton Municipality to counter the push for council amalgamations that would have a dramatic impact on the municipality’s ratepayers.
Brighton Councillor Leigh Gray said the signs had been placed to combat the misleading message on signs put up by the group Tasmanians for Reform claiming that local government amalgamation would reduce rates.
Cr Gray said this simplistic claim was not based on fact and for Brighton the reverse would be the case with householders facing significant rate rises.
“For example, rate equalisation as a result of amalgamation under the current proposal to create a greater Hobart council comprising the Brighton, Clarence, Glenorchy, Hobart and Kingborough municipalities would see residential rates in Brighton rise by up to 40 percent,” Cr Gray said.
“Obviously, such an impact on people in our community is unacceptable to the Brighton Council and I believe would be considered unacceptable to all fair-minded Tasmanians.
“As a result, we have developed our own signs to tell the true story that a reduction in commercial rates would lead to rises in household rates.
“Tasmanians for Reform is little more than a front for the Property Council and its campaign is designed to benefit large property owners at the expense of average ratepayers.
“The group is asking Tasmanians to take on faith, the promise of savings never before achieved in any local government amalgamation in this country. Simplistic claims of savings up to 35 percent (with the clear implication that rates will drop by this amount) supported by selective information and rhetoric, provide no basis for sensible decision-making.”
Cr Gray said conversely, Brighton Council had taken advice from Australia’s foremost authority on local government reform, Professor Brian Dollery, the Director of the Centre for Local Government at the University of New England in New South Wales.
“Professor Dollery has pointed out that the reality of recent amalgamations in Queensland and elsewhere in Australia, has actually resulted in increased costs for ratepayers and rising rates, for example an 18 percent increase in household rates in Moreton Bay in Queensland.
“This is little more than a push by big property owners to cut their rates at the expense of average householders.
“Brighton Council is not against local government amalgamation where it can be demonstrated by clear evidence thatthis benefits ratepayers and our community. However, in this instance, the reverse is clearly the case and I with my fellow councillors cannot sit by and allow this impact on our community,” Cr Gray said.
• Download Poster: TFR_A4_Poster_-_COMMERCIAL.pdf
• Mary Massina, Tasmanians For Reform: Brighton Council highlights disparity in rates
Tasmanians for Reform has congratulated Brighton Council on highlighting that it is 40 per cent
more efficient than other southern Tasmanian councils, following its move to erect signage
throughout the municipality to ‘counter the push’ for local government reform.
The comments come in the wake of a Brighton Council statement claiming that rates equalisation as
a result of amalgamations under the current proposal to create a Greater Hobart Council would see
residential rates in Brighton rise by up to 40 per cent.
Tasmanians for Reform (TFR) Chairperson Mary Massina said the very report that recommended the
creation of a Greater Hobart Council was commissioned by Brighton itself, along with the other
members of the Southern Tasmanian Councils Authority (STCA).
“This is one of two independent reports into local government amalgamations currently circulating,
which was put together by leading Australian economist Saul Eslake, revealing 15 per cent savings
could be achieved from council mergers,” Ms Massina said.
“The second report, conducted by Deloitte Access Economics, identified efficiencies of up to 35 per
cent could be achieved from local government reform.
“This equates to $110 million annually being wasted in the south of the State alone, which in today’s
economic climate, with the spiralling cost of living, is simply unacceptable.
“All TFR is asking for is that the STCA refers its final report on proposed structural reform of
southern councils to the Minister for Local Government for review by the Local Government Board.
“This is not about protecting the interests of big business – the TFR Coalition is the largest coalition
of peak bodies in Tasmanian history, representing 25 community and business organisations.”
Ms Massina said with independent EMRS polling revealing 73 per cent of Tasmanians support the
call for council mergers, the case for local government reform was simply too compelling to ignore.
“TFR’s campaign for local government reform has always focussed on the needs of the community
and has simply argued for better services, better infrastructure and cheaper rates,” she said.
• Working for Communities
“The propaganda that is being churned by the group known as Tasmanians for
Reform in its latest radio advertising campaign is nothing short of misleading, with the
big of end of town seeking to enlist normal ratepayers to ease the rate burden that
commercial property owners presently bear,” Acting President of the Local
Government Association of Tasmania, Clr Deirdre Flint said today.
“References to councils taking major profits on water and sewerage is rubbish,” she
said.
“Under present legislation, the pricing for water and sewerage is established by an
independent regulator and, as part of that pricing arrangement, the regulator requires
a reasonable rate of return on the assets that are used in the provision of supply.
This is a standard arrangement for public utilities throughout the country and is aimed
at ensuring that the investment in infrastructure is effective and efficient.”
“Any dividends received by councils are invested back into the provision of services
to the community, or the replacement or upgrading of assets. It needs to be
understood that while many have received water and sewerage bills for the first time
in recent years, these charges used to be included within council rates. They are not
new charges and the returns received by councils do not exceed those which were
received prior to water and sewerage reform. In fact, for most councils they are
less!” Clr Flint highlighted.
“The suggestion by Tasmanians for Reform that councils have underinvested in
water and sewerage infrastructure to the tune of $1 billion is also rubbish. Councils
have spent hundreds of millions of dollars on providing and upgrading water and
sewerage infrastructure over the past decade and would certainly have continued
that rate of expenditure into the future. The new regulatory regime that came into
effect with water and sewerage reform has certainly lifted the bar in terms of the
standards to be met, but it is ridiculous to suggest that councils had not been diligent
in their spending.”
“And Tasmanians for Reform want council amalgamations. They outrageously claim
savings levels that have never been achieved anywhere in the world where
amalgamations have occurred. They don’t care about small communities that value
and want a local voice. They don’t care about normal Tasmanians that are faced
with the loss of medical services from their local community that call on their local
councils to step in to assist. They don’t care about the plight of people that suffer
hardship and rely on their local councils to provide services to maintain their dignity in
the community,” Clr Flint said.
“According to them, this is rubbish apparently and only adds to the inefficiency of
Local Government. Tasmanians for Reform forget that councils are there for the
people and not only the big end of town. Councils are not ruthless and seek to build
and keep communities together,” she said.
“Councils have embraced resource sharing across the State in an effort to achieve
efficiencies, while continuing to meet their statutory obligations and providing
services that the community wants and needs.”
“No mention is made of who will pay for amalgamations but I am sure that it will be
left to ratepayers to bear the cost – certainly not those pushing for the change,” she
said.
First published: 2012-05-01 02:49 AM
