Monday, September 5, 2011

WE ALWAYS KNEW IT::Tassie council rates nation's second highest

FOREWORD: Launcestonians might want to think about a couple of things whilst reading this piece gleaned from The Advocate.
  • Firstly, rates in Launceston are apparently imagined by the city's General Manager, Robert Dobrzynski, to have a social dimension;
  • Secondly, in the context of this Mr. Dobrzynski seems to imagine 'Council Rates' as a form of "progressive tax", ie "wealth tax", despite contrary evidence that would seem to preclude 'Local Govt.' having the authority to levy ' taxes'; and
  • Thirdly, while apparently advocating ratepayer input into the city's rating system, Mr. Dobrzynski initiated a so called consultation meeting that resulted in it not having any significant impact on the either the Council's Budget or the process by which it was framed 2011-2012.

From The Advocate 05 Sep, 2011 12:00 AM

COUNCILS suck more money out of ratepayers in Tasmania than they do in any other state except South Australia.

That is according to leading economist Saul Eslake, who is part of an expert panel considering reform options for councils in the South.

His finding will not be reassuring for ratepayers already struggling with spiking water and sewerage and power costs.

"Local government taxation revenue (overwhelmingly in the form of rates) was equivalent to $548 per head of population in Tasmania in 2009-10, higher than in any state except South Australia and about 5% above the national average," Mr Eslake wrote in a paper related to the Southern project.

He said that was partly because they raised about 22% less from user charges for goods and services than the national average.

"On the other hand, Tasmanian local governments received an average of $210 per head in grants and subsidies from other levels of government in 2009-10, more than in any other state (except the Northern Territory) and some 60% above the national average."

Devonport Mayor Lynn Laycock said councils were facing new charges - such as now paying for watering parks - and also had to pay the ongoing costs of council developments.

"We're tightening our belt," she said.

"People have been screaming out for development and we've done that."

Financial year 2009-10 was the first when Cradle Mountain Water was operating the North-West and West Coast's water and sewerage assets, which were formerly operated and charged for by councils.

CMW's changes have spiked and will continue to do so, while power costs are also rising rapidly.

Mr Eslake, of the Grattan Institute, said Tasmanian councils were smaller, on average, than anywhere else in Australia except Western Australia and the Northern Territory.

The 29 councils averaged almost 17,500 residents, compared to an average of just under 40,000 on the mainland.

Ald Laycock hoped the Cradle Coast region could secure government funding to look at reform opportunities across its nine council areas.

Saul Eslake’s paper on Local Government: Click here to see his paper