A new report appears to back Victorian councils’ views about rate capping.

The Victorian Local Governance Association (VLGA) has highlighted the findings of the Legislative Council Environment and Planning Committee report into rate capping.

The report supports some concerns and criticisms of the State Government’s rate capping policy and the actions of the Essential Services Commission (ESC) in particular.

Finding 2 of the report said that; “In a rate capping environment, local government may hold constant, withdraw or reduce funding to the State Emergency Services, with possible impacts on community safety.”

Finding 3 of the report highlighted that; “Under rate capping local governments lack operational capacity and budget certainty/flexibility to develop and implement long term financial plans or to budget for infrastructure or staff costs.”

VLGA President Cr Sebastian Klein says the findings endorse what the sector has argued for some time.

“As we have maintained all along, the State Government’s rate capping policy will have an adverse long-term impact on community infrastructure and services. The Government cannot get away from that fact,” Cr Klein said

The report identifies State Emergency Services (SES), youth services and infrastructure investment as areas which could be impacted following the introduction of rate capping.

In addition, the report supports the VLGA’s concern about failings in the rate cap variation process and the actions of the ESC.

Cr Klein said that the VLGA has written to the Minister for Local Government Natalie Hutchins and urged her to act on the matters.

“There are clear failings with the Government’s rate capping policy and it is incumbent on the Minister to come to the table and fix this.”