Councils in the Western Riverina and Murray region of NSW have called for the newly-elected NSW Government to withdraw the non-rateable status of national parks and are seeking a 'rate equivalent' payment for councils for private land that has been purchased for incorporation into national parks.

In a meeting of councils in Jerilderie, President of the Shires Association, Cr Bruce Miller, said private lands that have been purchased for incorporation into national parks were previously rateable and contributed to a council's revenue.

"The subsequent acquisition of such land as national parks results in the shrinkage of the council rate base and their income," said Cr Miller.

"Councils are left with two unsatisfactory options - forego the revenue and cut infrastructure and services or compensate by increasing the rates for other ratepayers. Neither of these options is welcomed by councils or ratepayers," he said.

 

Cr Miller said the councils would seek a meeting with the new Minister to discuss the payment of compensation to councils for the loss of ratable lands to national parks."

"We fully acknowledge that national parks bring valuable tourism to many communities, but they also place a burden on the infrastructure and services provided by surrounding and adjoining councils.

In response to the LGSA's NSW Election Priorities 2011, the new NSW Premier promised a review of Local Government finances. The LGSA recommends the O'Farrell Government include a review of:

  • The payment of compensation to councils for the loss of ratable lands to national parks.
  • Payment of rates on private and commercial leaseholds (or other tenures) within national parks.
  • The payment of contributions by national parks to surrounding/adjoining councils for the provision and maintenance of supporting infrastructure and services.
  • The payment of rates on the commercial forestry plantations of Forests NSW.

 

Mayor of Carrathool Shire Council, Cr Peter Laird, who raised the motion in Jerilderie today, stated that tourism revenue does not replace the income previously received from the rates of private land. 


"The Government cites increased tourism as an offset to the financial losses from the lack of potential rate revenue from national parks, but this is nonsense. While tourism may be good for local business and employment, it does not provide a direct revenue stream for local councils," said Cr Laird.   

"Recent cases in the Carrathool Shire have provided only a very minor increase in tourist activity which is not sufficient compensation and places unnecessary financial pressure on councils."

Other issues discussed at the meeting today included the Murray-Darling Basin Authority Plan, Container Deposit Legislation (CDL), increases in library funding, rural fire service contributions and changes to the Newell Highway speed limit and height restrictions.