Latest / Early Edition with Ryan Bridge / Andrew Dickens: We don’t need rate caps, we need smarter councils

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Andrew Dickens: We don’t need rate caps, we need smarter councils · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: So the local government conference is underway and yesterday the
• 0:03
  Speaker 1: government took advantage of it to talk down to councils
• 0:05
  Speaker 1: like a step dad telling off their step son. They've
• 0:08
  Speaker 1: been told to rain and wasteful spending to keep their
• 0:10
  Speaker 1: rates increases down. Now you know a bit of irony.
• 0:14
  Speaker 1: There would be good if the government that is currently
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  Speaker 1: spending more than any other also practice what they preach.
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  Speaker 1: But anyway, the government is now talking about bringing in
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  Speaker 1: rate caps. Sounds good, simple idea we can all understand.
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  Speaker 1: But would it work. The fact is the idea is
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  Speaker 1: in place in Australia. Melbourne and Sydney have rate caps,
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  Speaker 1: but individual councils can apply for exemptions. In a Melbourne
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  Speaker 1: that meant that some councils imposed ten percent rates, so
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  Speaker 1: it didn't work there. But they do not have rate
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  Speaker 1: caps in Brisbane, and Brisbane has the lowest rate increases
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  Speaker 1: in Australia. So why is that successive councils have kept
• 0:47
  Speaker 1: the debt low. They've had smart, long term plans with
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  Speaker 1: cross party support, so that's one thing. They have a
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  Speaker 1: Suburb's First policy, so that improvements have made where people
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  Speaker 1: actually live. Eighty five percent of their budgets spent on this.
• 0:59
  Speaker 1: It's cheer than grand CBD projects, and they like public transport.
• 1:04
  Speaker 1: A record two hundred and ten million dollars is being
• 1:06
  Speaker 1: spent this year on it, which is a lot cheaper
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  Speaker 1: they say, than building roads roads roads. But of course
• 1:11
  Speaker 1: here public transport or alternative transport options are the first
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  Speaker 1: to be cut in hard times. We hate a cyc
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  Speaker 1: away and because of their resident friendly, suburban centric approach,
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  Speaker 1: combined with a fiscal prudence, they have some regal room.
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  Speaker 1: Senior citizens in Brisbane get the most generous rebates in
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  Speaker 1: the country, cutting their rates in half, and then Brisbane
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  Speaker 1: can pursue some big stuff. They're going for the Olympics,
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  Speaker 1: but here they show some balls as well, conning the
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  Speaker 1: redevelopment of the Gabba because the business case didn't measure
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  Speaker 1: up rate. Caps are good slogan policy. It sounds like
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  Speaker 1: a simple answer to a complex situation, but they didn't
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  Speaker 1: work in Sydney and Melbourne. In fact, they're suffering from
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  Speaker 1: what's called rapes catch up. If you defer projects, then
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  Speaker 1: eventually you're going to have to do them, and someone's
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  Speaker 1: going to pay for them. Fung I know we will
• 1:56
  Speaker 1: find that out when the Opera House will eventually have
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  Speaker 1: to have millions spent on it to fix it up.
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  Speaker 1: They've deferred that the reason we're in the hole is
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  Speaker 1: because of false promises of low rates by previous mayors
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  Speaker 1: and councils that has resulted in a rates catch up
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  Speaker 1: Wellington Water. Does that sound familiar to you. That's exactly
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  Speaker 1: what happened there. We don't actually need rate caps, but
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  Speaker 1: what we really need is sensible, long term, fiscally prudent governance.
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  Speaker 1: Look for that next election, but it's as rare as
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  Speaker 1: a unicorn. For more from Early Edition with Ryan Bridge.
• 2:28
  Speaker 1: Listen live to News Talks it Be from five am weekdays,
• 2:32
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