Local Government Amendment (Fair Go Rates) Bill 2015

Mr J. BULL (Sunbury) — It is always a pleasure to follow the member for Kew. It gives me great pleasure to rise to contribute to debate on the Local Government Amendment (Fair Go Rates) Bill 2015. This bill delivers on another election commitment and is from a government that is true to its word, that gets on with it and that is doing things that Victorians voted for. Victorians are hardworking, decent people. They are fair people, and they all deserve the chance to be the best they possibly can be. They deserve access to decent and affordable health care, a quality education and to be free from harm, intimidation and violence. These are all fundamental human rights set out in the Universal Declaration of Human Rights. They are equally entitled to a strong, fair, stable and working democracy and to a system of government that supports them, but does not charge them unfairly.

I have often heard people say that councils are only good for roads, rates and rubbish. I strongly disagree with this statement. Local government in my view plays a much greater role than this. A good municipality will be a leading municipality — it is one that liaises closely with state and federal governments but also one that charts its own course. It is a municipality that delivers services and promotes sport and recreation, social activity and a sense of community. The services of local government come at a cost, and this bill addresses a serious and growing problem that we have seen in the state for a number of years — that is, rising rates bills. Time and time again, year in, year out, families, individuals and businesses cannot afford or understand these rates bills.

If we are talking about rates, it would be remiss of me to not mention at this time the botched Liberal proposal for the separation of Sunbury from Hume City Council. We always maintained that to do this the economics must stack up. We could not stand for a situation whereby rates would go up and services would actually decline, but that is what the Liberals promised and that is what they are still promising. After extensive consultation with the Sunbury community, independent auditors Frank Vincent and John Watson recommended against proceeding with separation due to the long-term and significant financial impact on Sunbury residents.

The auditors found that a separation at this time would result in much higher rates and a reduction in services and community facilities for ratepayers. The report concluded that to maintain a similar level of services for a proposed Sunbury council, rates would need to increase by 14.2 per cent in the first year and 8.5 per cent every year after that. They found the process to be unprecedented, unsustainable and potentially legally challengeable. So I am not sure how those opposite can come into this place today and support this policy yet still maintain their desire to hike rates up by 14.2 per cent in Sunbury in the first year and 8 per cent every year after that.

An honourable member interjected.

Mr J. BULL — Tell them they are dreaming.

The former Minister for Local Government spoke on this bill a short time ago and said that there are a number of councils under financial stress. This is the same former minister who was happy to commit to the Sunbury out of Hume process.

Over the last 10 years Victorian councils have raised their rates by 6 per cent a year on average — twice the rate of inflation. This is unsustainable, and local governments are clearly unable to address it alone. With each rate rise comes pressure on families and individuals, starting with those who are struggling the most.

For someone with a healthy bank balance, a well-paying job and perhaps a mortgage paid off, a few percentage points each year may not be such a big impact. Contrast this with a family or individual who has recently gone through a job loss, ill health, the death of a family member or who is struggling with low-income pressure; a few percentage points each year is money that they simply do not have.

This is a bill about giving Victorians a fair go and ensuring that their rates money is spent effectively and efficiently. This is a significant reform for Victoria and for local government across the state, and once again it is a Labor government that has delivered it. This government is getting on with what it promised, and I commend the bill to the house.