❓ Mr L'Estrange raises constituent concerns about increasing local government rates. The Minister responds by highlighting the importance of ratepayers in local government reform, emphasizing economies of scale through amalgamations to deliver better services and sustainable rates.
AnsweredQoN 612Legislative Assembly
QuestionView source ↗
LOCAL GOVERNMENT —
AMALGAMATIONS — RATES
612. Mr S.K. L'ESTRANGE to the Minister for Local Government:
A number of my constituents have come to me with concerns
about their local government rates increasing. How will local government reform
affect this?
AMALGAMATIONS — RATES
612. Mr S.K. L'ESTRANGE to the Minister for Local Government:
A number of my constituents have come to me with concerns
about their local government rates increasing. How will local government reform
affect this?
AnswerView source ↗
I thank the member for Churchlands for his question. He is
right. It is an interesting year, especially for local government rates because
it is a year of review and gross rental value review as rates are reviewed
every three years. Increases in gross rental value can have a big impact on
local government. It always a concern to me as the Minister for Local
Government when this issue makes it onto the front cover of The West Australian , as it did on
Wednesday, 30 July, detailing how much rates have gone up. In fact, one-third
of them were up by more than five per cent. This is a big issue for ratepayers,
and it is clear that the most important people in this reform process are the
ratepayers. Although we hear a lot of complaints from mayors, presidents,
councillors and CEOs, the most important people in this reform process are the
ratepayers. One of the most important elements of this reform process is to
ensure that we build those economies of scale. To explain to members, this
graph looks at the average rate increase for this year. At the top of the scale
is the smallest local government and the end one is the largest local
government in the metropolitan area. We can see quite clearly that the larger
local government has the lowest rates and the lowest rate of increase, and also
can deliver better services for its ratepayers. This is a classic example of
why we need to make sure that our local governments are sustainable and can
develop the economies of scale necessary to deliver services to their
ratepayers. As I said at the start, it is about the ratepayers; we need to
ensure that we get good delivery of services.
We are now in the final stages and next month the advisory
board's report will come out. We will then be on our way to ensuring
that we can build those economies of scale to deliver good local government for
the ratepayers of Western Australia, and to ensure that local governments are
sustainable now and into the future. As I stand here in 2014, looking at the
metropolitan area, over the next 10 years there will be a further 500 000
people, and 3.5 million people by 2050. The question we need to ask today is
how many local governments we will need for 3.5 million people. If we were in
Toronto, the answer would be one, and if we were in Brisbane, the answer would
be one, but in the metropolitan area of Perth we currently have 30, so
obviously that is too many. We need to find the balance, and that is what the
government is trying to achieve with this reform process: to plan for the
future to make sure those local governments are sustainable, to deliver
ratepayers the services they need.
right. It is an interesting year, especially for local government rates because
it is a year of review and gross rental value review as rates are reviewed
every three years. Increases in gross rental value can have a big impact on
local government. It always a concern to me as the Minister for Local
Government when this issue makes it onto the front cover of The West Australian , as it did on
Wednesday, 30 July, detailing how much rates have gone up. In fact, one-third
of them were up by more than five per cent. This is a big issue for ratepayers,
and it is clear that the most important people in this reform process are the
ratepayers. Although we hear a lot of complaints from mayors, presidents,
councillors and CEOs, the most important people in this reform process are the
ratepayers. One of the most important elements of this reform process is to
ensure that we build those economies of scale. To explain to members, this
graph looks at the average rate increase for this year. At the top of the scale
is the smallest local government and the end one is the largest local
government in the metropolitan area. We can see quite clearly that the larger
local government has the lowest rates and the lowest rate of increase, and also
can deliver better services for its ratepayers. This is a classic example of
why we need to make sure that our local governments are sustainable and can
develop the economies of scale necessary to deliver services to their
ratepayers. As I said at the start, it is about the ratepayers; we need to
ensure that we get good delivery of services.
We are now in the final stages and next month the advisory
board's report will come out. We will then be on our way to ensuring
that we can build those economies of scale to deliver good local government for
the ratepayers of Western Australia, and to ensure that local governments are
sustainable now and into the future. As I stand here in 2014, looking at the
metropolitan area, over the next 10 years there will be a further 500 000
people, and 3.5 million people by 2050. The question we need to ask today is
how many local governments we will need for 3.5 million people. If we were in
Toronto, the answer would be one, and if we were in Brisbane, the answer would
be one, but in the metropolitan area of Perth we currently have 30, so
obviously that is too many. We need to find the balance, and that is what the
government is trying to achieve with this reform process: to plan for the
future to make sure those local governments are sustainable, to deliver
ratepayers the services they need.
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