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MAV figures prove country subsides city

The Member for Gippsland East, Craig Ingram, has condemned the lack of leadership at a state and national level on the appalling inequity that has developed in local government and road funding.

By Craig Ingram - 26th July 2004 - Back to News

Mr Ingram’s comments follow recent figures released by the Municipal Association of Victoria which show rural councils (two of which are covered by his electorate of Gippsland East) have rate increases of over $100 for the average residential property.

"This situation is a direct result of the major flaw in the Grants Commission Acts (the 30% as-of-right entitlement) and the marginal seat syndrome that has corrupted infrastructure funding through the metropolitan marginal seats for decades, Mr Ingram said.

"The Commonwealth Government is currently attempting to politically blackmail the State Government with the support of the National Party to fund yet a another freeway from taxpayers’ dollars, which only benefits the select few in the marginal metropolitan seats."

Mr Ingram has described the current situation as "Robin Hood in reverse".

"The less well-off (predominantly rural) ratepayers are handing fists full of tax dollars over to the wealthy metro councils and assisting in increasing property values in the city," Mr Ingram said.

"Based on the MAV figures, owners of residential land in rural municipalities pay up to six times the rate/$ than the well heeled property owners of Brighton and Sandringham.

"The valuation of the average residential property in the Shire of West Wimmera is a modest $46,250, while the comparable figure for Bayside City Council is $545,000.

"The figure for East Gippsland is $170,000, which reflects the increasing valuations of coastal residential areas.

"This has left rural councils with limited capacity to address their crumbling infrastructure and the raft of increased obligations that state and federal governments have shifting onto local ratepayers.

"The commonwealth and state grants commissions have as their objective to allow local government to deliver equitable services its clearly not working," Mr Ingram concluded.

Source: http://gippsland.com/

Published by: news@gippsland.com



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