A massive hike in Local Government rates appears increasingly likely as Tasmanian Councils struggle to meet the shortfall in funding following the 2014 Federal Budget.
The Treasurer, Peter Gutwein, who is also the Minister for Local Government, refused to rule out rate rises despite persistent questioning from the State Opposition in the Parliament earlier today.
“Local Councils are between a rock and a hard place as a result of the recent Federal Budget,” Mr Bacon said.
“With a freeze in the indexation of Local Government Financial Assistance Grants from the Federal Government, councils are being left with no choice other than to cut services or increase rates.
“Mr Gutwein has so far refused to support Tasmanian councils and appears more interested in supporting his Liberal mates in Canberra than defending the needs of Local Government and the communities they serve.”
Mr Bacon said the Treasurer had been given two opportunities during Question Time to categorically rule out rate rises but dodged and weaved both questions, instead delivering Liberal rhetoric that answered nothing.
“The Liberal Party ruled out any increase in taxes and charges to deal with the $2.1 billion black hole that Tony Abbott and Joe Hockey have dumped on Tasmania but it now appears local communities will foot the bill with either a loss of services or an increase in rates,” Mr Bacon said.
“Mr Gutwein should start explaining how he expects councils to deal with these issues instead of defending his Liberal mates in Canberra.”
Scott Bacon MP Shadow Treasurer
