As the state poll looms on 15th March , the Local Government Association of South Australia LGA has taken Liberal Opposition Leader Steven Marshall to task over what councils argue is an unnecessary policy that will cut off their ability to generate money needed for vital programs. Rate pegging has become a staple electoral tactic for state politicians seeking to tap into hostile sentiment over the cost of council services.
The issue is particularly touchy among older voters who need to survive on limited incomes but own properties assets that may have appreciated in value and thus attract higher bills.
Although initially popular with a section of voters, the challenge for state politicians is that promising rate caps can come back to haunt governments when the financial viability of councils is strained because they cannot generate sufficient revenue to maintain existing service levels, thus creating an unproductive and unsightly blame game between the two jurisdictions.
Should a Marshall government be elected, the rate-capping plan would be implemented from 1 July Mr Marshall has defended the need for rate capping by referring to the rise in council rates over the last decade, saying that rates in South Australia have increased by an average of 6. He said this was more than double the rate of inflation and 2. Now the Local Government Association of South Australia LGA has hit out against the announcement, saying that it was disappointing as it was made without consultation.
The acting president of the LGA, Lorraine Rosenberg said her Association is concerned that the pegging policy would cause further financial stress to councils with a resulting reduction in service and service delivery to communities. Ms Rosenberg explained that SA councils are already burdened by having to prepare for long term infrastructure plans, long term financial management plans, consult communities on annual budgets and rates and facing elections every four years where councillors are held accountable for setting and spending rates.
