SOME of the harshest public criticism of the Andrews government’s proposal to cap rates has come from an unlikely source – one of Labor’s own.
Cr Colin Hampton has broken party lines to condemn the party’s push to cap council rates across Victoria as “absolutely the worst policy decision the ALP has made in all the years I’ve been a member”.
The long-time Labor loyalist, a party member for 38 years, made the comment when he took to the airwaves to slam the Labor state government on radio station 3AW’s Drive show.
Cr Hampton told The Times “the Labor Party is supposed to be looking after the benefits of the workers”.
He said council’s costs are not linked to CPI and expenses such as staff salaries, for example, could be higher than the cost of living measurement.
“The last EBA [enterprise bargaining agreement] we signed off on was more than 3 per cent,” Cr Hampton said.
The annual CPI figure is calculated by the Australian Bureau of Statistics based on the price of ‘a market basket’ of consumer goods and services paid for by households.
CPI was 1.7 per cent last year, according to ABS data.
Frankston Council bases its financial plans on annual rates rise of 5.5 per cent on average.
If Labor’s plan to limit rate rises to CPI increases comes into force Cr Hampton said ratepayers would save “about $70” annually but $22 million over four years would be ripped out of council’s budget and services will suffer.
“People run the services and it will cost jobs.”
Council has written to the CFMEU and Australian Services Union to ask for their support to convince Premier Daniel Andrews to break his “populist” promise made before last year’s state election.
The state government has tasked the Essential Services Commission with investigating how the rates cap policy can be implemented.
Local Government Minister Natalie Hutchins has said councils will be consulted by the ESC as part of the process.
Councils will be able to make submissions to the ESC if they believe rate rises higher than CPI are needed but the state government plans to have ultimate approval on any such higher increases by any council in Victoria.
