Claims that forced Council amalgamations would drive down rates are not borne out by evidence from other States.
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This view has been put to the NSW Parliament by Local Government NSW – the body formed by State Councils.
LGNSW President Keith Rhodes has told Parliament that amalgamations had actually driven rates higher in other jurisdictions, including Queensland and Victoria.
“After the 2008 Queensland amalgamations total Council rate revenue in that State grew by 27%, compared to NSW rate growth of 13.4% over the same period,” Cr. Rhoades said.
In a letter received at last Upper Lachlan Council meeting, Cr. Rhoades points out that as a result of nearly four decades of rate pegging NSW actually has the lowest per capita rates of all jurisdictions expect the Northern Territory.
“According to the Commonwealth’s most recent Local Government national report (2012/13) Victorian council rates average $692 per capita compared to $499 in NSW – a difference of nearly 43 per cent..
“This is despite amalgamations in 1994 that reduced the number of Victorian councils from 210 to 78,” Cr. Rhoades said.
Cr. Rhoades told the Legislative Council inquiry into Local Government in NSW that the Government had consistently claimed the Fit for the Future reforms were designed to drive down rates, improve infrastructure and provide better services, yet had failed to deliver any evidence to support its case.
“The argument that bigger is always better lacks evidence, and is in fact contradicted by a larger body of research and real life experience that challenges that proposition,” Cr. Rhoades added.