Independent Pittwater MP Jacqui Scruby is concerned about the Northern Beaches Council proposed rates rises, especially in a cost-of-living crisis. She is calling on the state government to implement the 18 recommendations of a recent inquiry into local government sustainability to reduce the impact on ratepayers.
Ms Scruby highlights that this issue is not unique to Northern Beaches Council and clearly shows we need structural reform.
“Northern Beaches Council is not alone. Across NSW, Councils have applied or are applying to IPART (Independent Pricing and Regulatory Tribunal) for rate rises similar to those being proposed by the Northern Beaches. Councils are facing similar increasing costs. These costs include general inflation, above CPI increases to the cost of construction and insurance, the increased cost of extreme weather (the cost of climate change) and cost shifting to councils from the NSW Government such as the Emergency Services Levy.”
Early last year nine councils applied for or were granted special rate variations, including Sydney councils of Randwick City and Willoughby City. This year, it is anticipated that up to eight councils will be applying, including Northern Beaches and North Sydney Councils.
“This issue is so ubiquitous across the state that it has prompted parliamentary inquiries at both a state and federal level.”
The current Federal Inquiry into Local Government Sustainability is looking at the role the federal government should play, including increasing funding for local governments. Its report is due early this year.
The NSW Parliamentary Inquiry into the ability of local government to fund infrastructure and services released its report and 18 recommendations late last year. These recommendations include the reversal of state and federal government measures which shift costs to councils, increased funding from state and federal governments and a review of ratepaying exclusions.
“As a state MP, my focus is on how I can keep rates down from a state perspective. I will be strongly advocating for the NSW Government to act on the 18 recommendations from the recent NSW Parliamentary Inquiry into the ability of local government to fund infrastructure and services and have already written to the Ron Hoenig, Minister for Local Government, and I will bring this issue up in question time.
“Here on the Northern Beaches, we want public money used effectively. One thing I have noticed is people’s frustration about spending on ‘solutions in search of a problem’, such new traffic calming measures. Although projects like these are often funded by the NSW state government through grants and not by council rates, people when they’d prefer that money be spent on local priorities such as maintaining our pools, roads and reserves, or building footpaths.
“I have met with the CEO Scott Phillips and multiple councillors, many of whom are new and have inherited this problem. I have put pressure on them to find further savings and prioritise maintenance of Pittwater.
“This is a complex issue that is not just a local government issue but a state issue and federal issue. We have a federal election coming up and pressure should be put on the federal government to take the pressure off ratepayers. Even if IPART does approve the special variation that is adopted by Council, implementation should be delayed or staged until both State and Federal governments have responded to the two inquiries’ recommendations,” says Ms Scruby.