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Rates Claim Wrong

Claims by East Gippsland MP Craig Ingram that Latrobe City residents are the highest rated in the state have been rejected as ‘ridiculous’ by Latrobe City’s Chief Executive Officer, Paul Buckley.

By news@gippsland - 8th July 2005 - Back to News

The claims were made in an article published in Wednesday’s Weekly Times which quoted Mr Ingram as stating that Latrobe City has the highest ‘implied’ rate of all Victorian councils.

Mr Buckley said that far from being the highest rating council in the state, Latrobe City was in fact one of the best performers. The implied rate for Latrobe City is in fact 6.7%, not 16.6% as claimed by Mr Ingram.

"When the correct figure of 6.7% is applied it demonstrates quite clearly that Latrobe City has the lowest implied rating among the regional cities, the lowest implied rating in Gippsland, and the second lowest implied rating in the whole of regional Victoria," Mr Buckley said.

"Unfortunately, what we have seen here is flawed mathematics at the very basic level. It’s almost as bad as attempting to present a balanced household budget that includes all the income, but fails to take into account the largest expenditure item, the mortgage repayments. That’s how silly it is!" Mr Buckley said.

"In this particular case, the rate revenue quoted as part of the ‘implied rate’ has been correctly calculated including payments received from the power generation companies, but the figure quoted as the total municipal value of Latrobe City fails to include the power generators, so is short changed by a few hundred-million dollars.

"Because ‘implied value’ is based on dividing ‘rate revenue’ by ‘total valuation’, it stands to reason that if one figure is out by hundreds of millions of dollars, the answer one comes up with will be ridiculously out; and that is the case here," Mr Buckley said.

2 Year Average NAV Valuations

($)

2 Year Average Rate Revenue ($)

Implied Rate

Incorrect figures quoted by Craig Ingram MP

183,433,500

30,367,500

16.6

Correct figures for Latrobe City

451,083,500

30,367,500

6.7

The Victorian Grants Commission from where Mr Ingram sourced his information, has confirmed Latrobe City’s implied rate is 6.7% not 16.6%.

Mr Buckley said that not only was Latrobe City placed at the lower end of the scale of implied rates, but Council had delivered one of the lowest rate increases in the state for the 2005-2006 financial year.

"Latrobe’s rate increase of 2.5% compares extremely favourably with figures released by the MAV for the rest of Victoria."

Mr Buckley said that the Member for East Gippsland, Mr Ingram, should apologise to the Gippsland community for quoting comparison figures without checking the facts, and as a consequence misleading the community.

"It shows a complete lack of understanding in fiscal matters on Mr Ingram’s part.

"Mr Ingram is quoted in the Weekly Times article as using figures supplied by Bruce Evans. Mr Evans is a colourful correspondent in East Gippsland with views on anything from the economic rationality of subsidies provided for public transport in Melbourne, to his opinion on removal of fruit bats from the Royal Botanical Gardens. In this case, the figures Mr Evans provided to Mr Ingram are clearly misleading. However, it is Mr Ingram’s responsibility to verify material he intends to use in the media before making it public.

"Mr Ingram and Mr Evans are not totally at fault in this matter though. The figures they are working from, which are clearly wrong, have been put together by the Victorian Grants Commission. The Victorian Grants Commission clearly needs to lift its game when providing statistical data," Mr Buckley concluded.

Media Enquiries:

Cr. Bruce Lougheed, Mayor, Latrobe City

tel. 0429 172 237

Cr. Darrell White, Deputy Mayor, Latrobe City

tel. 0417 377 645

Paul Buckley, Chief Executive Officer,

tel. 5128 5413 or 0418 512 997

Jeremy Bein, Public Relations and Communications Officer,

tel. 5128 5458 or 0407 862 977


Source: www.gippsland.com

Published by: news@gippsland.com



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