Members Statement - Local Government Rate Capping

2016-02-24

Ms DUNN (Eastern Metropolitan) — When the Minister for Local Government set the rate cap for local governments across Victoria, I wonder if she turned her mind to the fact that 2016 is a local government election year and that local governments need to cover their costs for those elections. The minister has set the cap at 2.5 per cent. The recent changes through the Local Government Amendment (Improved Governance) Act 2015 mean it is mandatory for councils to use the Victorian Electoral Commission (VEC) to conduct their elections. VEC election charges have risen by over 30 per cent since the 2012 election. In the case of Whitehorse City Council, VEC estimates its election costs will be $644 000.

I am aware that the cost of postal elections to local government equates to up to 1 per cent of the 2.5 per cent rate rise allowed, in effect making their allowable rate cap only 1.5 per cent. For other councils opting for attendance voting the costs will be higher. This might sound like an attractive proposition; however, there are consequences for communities, because although they might bear the 2.5 per cent cost, 1 per cent has automatically been spent on elections, leaving less in the kitty for services and infrastructure.

The assurances given by the minister that she will take into account other issues that might be impacting on a council or group of councils in a given year are hollow. She had the opportunity to intervene and cover costs for elections but has chosen not to, instead imposing these costs onto communities that will continue to feel the impact as services are cut and infrastructure fails. Communities have been denied the ability to have direct conversations with their councillors, their local government representatives, about the services they want and the price they are willing to pay for them.