By JOHN VAN KLAVEREN
THE REGION’S councils could cut jobs, services and infrastructure development as higher levels of government restrict their revenue sources, a municipal body has warned.
Victorian Local Government Association (VLGA) said the councils were under pressure from reduced federal grants and State Government’s proposed cap on rate increases, which Premier Daniel Andrews has referred to the Essential Services Commission (ESC) for approval.
City of Greater Geelong strategy and performance acting general manager Andrew Keen said council was concerned about the plan to cap rates to inflation.
“However, the guidelines and process are yet to be developed by the Essential Services Commission,” Mr Keen said.
“We hope to provide input into the process through our membership of a taskforce established by the MAV (Municipal Association of Victoria).”
Surf Coast Shire Mayor Margot Smith said her council would have a better idea of the impact of the move once the ESC investigation was complete.
VLGA president Sebastian Klein said councils were already under financial pressure, which a Victorian Auditor-General report highlighted last year.
Restricting the ability of municipalities, particularly small councils and others facing growth pressure, to address funding shortfalls through rates would compound the issue, he said.
“If a rate policy is badly implemented it will be a triple whammy for communities, affecting services, jobs and local democracy,” Cr Klein said. “Our members have clearly told us that restricting annual rates increases to the Consumer Price Index will lead to cuts in services and community infrastructure.
“This, in turn, can easily lead to job losses, which will particularly effect the local economies of rural and regional communities.
“And, most importantly, rate capping will severely undermine local democracy and the role of councils to work with their local communities.”
