Legislation passed in State Parliament in March 2017 has given MidCoast Council the means to apply for a Special Rate Variation (SRV) from the Independent Pricing and Regulatory Tribunal (IPART).
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Previously, councils created in 2016 or councils which had merger proposals pending due to legal proceedings, were ineligible to apply for a special variation for the 2017-18 year.
Until the legislation was passed this policy affected four councils, Federation, Hunter’s Hill, Willoughby City and MidCoast.
Should MidCoast Council's application be approved, the SRV will come into effect from July 1.
Yesterday, (May 9) SRV increases were approved for Bellingen, Byron, Inverell and Port Macquarie-Hastings councils. Ballina and Shoalhaven councils have received partial approval for temporary increases, while the applications from Lockhart and Muswellbrook have not been approved.
The Great Lakes Advocate asked two former Great Lakes Council councillors for their thoughts on the SRV for the MidCoast region.
Stroud resident Karen Hutchinson said the application “shouldn’t come as a surprise to anyone”.
“Before the amalgamation Great Lakes Council had applied for the SRV, and it was only a day out from potential approval when the amalgamation occurred,” Ms Hutchinson said.
“Taree had applied but was refused and Gloucester had already potentially been approved for a previous SRV.”
Ms Hutchinson’s view is that the longer the new council area delays the rate increase the worse the infrastructure backlog and maintenance becomes.
“The longer things are delayed the bigger bucket of money will be needed.”
Forster resident Jim Morwitch is concerned about the equity in the SRV across the three former council areas, with varying increases in each area.
“The equity situation remains a little crazy, under imposed current regulations,” Mr Morwitch said.
He said it would not be until a new council was elected in September that work could begin towards identifying affordable and an equitable harmonisation of rates, as well as the oversight that savings achieved by merging could improve longer term future rate increases.