Rising Rates Bill !

One third of the local councils in New South Wales have applied to to the ratings regulator for permission to hike their rates for the 2015/16 year above the general level set for all councils.  What will alarm residents struggling with static pay levels is the extent of the rises sought.  Nineteen councils want a rate rise from sixteen percent - to a whopping fifty percent - and the Independent Pricing and Regulatory Tribunal ( IPART ) has set the general  rise for the coming financial year at just 2.4%.

There has been pressure for councils to achieve economies by amalgamation, but in the vast majority of cases this is being resisted, and yet sheer logic says that it is inevitable.  Originally, what are now suburbs were individual villages and each had a council responsible for maintaining local roads and footpaths, collecting rubbish and removal of what was quaintly termed "night soil "- before the era of sewage systems.

Over the years, both state and Federal governments have dumped a host of responsibilities back onto councils.  They now provide libraries and health centres.   They have health inspectors who check hygiene wherever food is prepared and sold. Off street parking and policing of parking restrictions are council responsibilities and child care facilities have been added to the list.  Most now lack the land to provide a local landfill and have to freight their rubbish to an out of town facility.  Most are drowning in a sea of costs and face an ever lengthening list of essential maintenance postponed because of lack of funds.   Many claim that the wolf is at the door - and bankruptcy is threatening.

Residents also hate the idea of amalgamations.  They fear the loss of jobs and the ability to talk directly with the people who can achieve results.  Many in older suburbs fear that their rate money will be squandered in creating new housing estates elsewhere and their services will suffer.  Amalgamation is a touchy subject - and politicians handle it with great care.

Getting elected to council has been a pathway to both state and Federal politics.  Each councils mayor reaches a pinnacle of social standing and will be regularly featured in the media.  Becoming an elected councillor brings elevation - and invitations to social events.   Unfortunately, it sometimes encourages gradiose ideas far beyond the financial realm of a small council and these can become a burden on ratepayers.

Merging councils into sensible economic units would reduce waste and achieve the better use of costly mechanical equipment.  There is no doubt that amalgamation would see a reduction in the work force needed, but we are in an age of labour saving devices replacing the old days of pick and shovel maintenance - so contraction of numbers is inevitable.   It is also the only way that costs can be contained.

It seems that both councils and the government are between a rock and a hard place.  Council finances are going backward and eventually some bankruptcies will be inevitable unless a better system evolves.   It is unlikely that amalgamations to achieve economy of scale will be achieved by consensus.   It will take brave politicians to apply the legislation needed to make this happen - and they will face a backlash from both residents, councils and the unions involved.

In the meantime, worried residents will be sweating to await the decision IPART hands down on those rate increase requests !