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7 January 2015

Home > About Council > Mayor & Elected Members > Mayor's Speeches

07/01/2015

The elephant in the room

Welcome to 2015!

The real work on the 2015-2016 Budget may still be three months away, but the Council has already turned its attention to dealing with the ‘elephant in the room.’

The announcement by the South Australian Treasurer, the Hon Tom Koutsantonis last June, that 2014-2015 would be the last year the State Government would provide Council Rates Concessions unless the Federal Government restored cuts to this program, sent shockwaves through Local Government.

Currently, these concessions provide pensioners and low income earners up to a maximum of $190, and for Seniors Card Holders up to a maximum of $100 rebate, off their Council rates.

In the City of Norwood Payneham & St Peters, this means that more than 3,100 rate payers receive some form of financial relief for their Council Rates.

The Council’s response

In response, last December the Council resolved that staff prepare a report on the potential financialand administrative impact on the Council’s Budget, should it decide to absorb the cost of these Rate Concessions.

The Council’s view is that a decision of this significance cannot be made without considering all of the relevant facts.

In recent years, millions of dollars have been cut from the Council’s Operating Budget, which has resulted in our City having one of the lowest residential rates (average) among the eastern metropolitan region.

The numbers tell the story – for 2014-2015 the average rates are: Campbelltown ($1,226); NPSP ($1,372); Unley ($1,598); Burnside ($1,600); Prospect ($1,600) and Walkerville ($1,786).

Is this our job?

There is no question that all of this may change should the Council decide to meet the cost of Rate Concessions previously provided by the State Government.

But, putting aside the question of how this might be paid for, I believe a more fundamental question for the Council to answer is whether Local Government should provide this type of social welfare for its citizens?

The days of the three “R’s” of rates, roads and rubbish are long gone, with Councils taking on a raft of other roles and responsibilities prescribed in the Local Government Act 1999.

However, it has never provided financial assistance to residents and ratepayers for day-to-day living expenses such as water, gas and electricity, let alone rent or public transport.

A question of equity

Then, there is the question of equity. Why should the majority of ratepayers bear the financial burden of subsidising rate concessions for a small number of ratepayers?

Depending on your individual financial circumstance, the answers to these questions may appear easy.

But the hard reality facing the Council is that irrespective of its decision on this important issue, every household budget in our City will feel the impact of the decisions which have been made by the State and Federal Governments.