By Angela Dorizas

The Shires Association of New South Wales has renewed its calls for the abolition of rate pegging.

Speaking at the Shires Conference in Sydney today, Shires Association president Cr Bruce Miller urged the State Government and Opposition to remove the cap on council rates.

“Many councils are now struggling to provide even basic services or infrastructure,” Cr Miller said.

“The Productivity Commission and Henry Tax Review have both recommended that rate pegging be done away with.

“A number of senior state and federal ministers privately admit that rate pegging is well past its use-by date and should be abolished.”

Minister for Local Government, Barbara Perry, said there was no need to abolish rate pegging because the integrated planning and reporting reforms would instead provide financial stability.

“What we’ve done, in the reforms, is give councils the tools that they need to work with their communities, through integrated planning, to work out what their assets are, what needs to be done on those assets and what needs to be done for the future,” Ms Perry told Government News.

“We’ve introduced a systematic approach to looking at these things. Once we can get that onboard, and get all of that done, then I think we’ll see a big difference to how councils and communities operate around the issues of their ongoing financial needs.”

Campaign agenda

In the lead up to the 2011 state election, the Shires Association has called on the Government and Opposition to return planning powers to councils and provide greater funding for roads and infrastructure.

Cr Miller urged Premier Kristina Keneally to sign a memorandum of understanding with the sector.

“I must confess that while we have a good relationship with the Premier and a number of ministers there is still much to be done in this relationship if it is to work properly for the benefit of both sectors of government,” Cr Miller said.

“Over the past few years we have sough unsuccessfully to sign off on a formal memorandum of understanding with the State Government, which would form the basis of that relationship.

“Premier, I would again ask that this matter be resurrected and that a suitable memorandum of understanding be agreed to and implemented as a matter of priority.”

The Shires Association is also seeking election commitments from the Federal Government and Coalition, including the continuation of the Regional and Local Community Infrastructure Program (RLCIP) and Roads to Recovery funding.