Mayor’s View – 28th August, 2008
There is certainly some truth to the saying that “the hip-pocket nerve is the most sensitive one in the human body’ and people are understandably protective of benefits they have received in the past. It is therefore to be expected that categories of ratepayers who see their financial position as being disadvantaged by the new regional council’s first budget may complain. An example concerns the treatment of pensioner remissions.
The new council is required by law to merge the different discount systems that applied in the North and the South.
In fact the pensioner discounts now increase to $593,000, in the Cassowary Coast Regional Council’s first budget, from $581,000 for the Johnstone and Cardwell Shire Councils combined last budgets. Additionally 298 more pensioner ratepayers will benefit for the first time.
It is true that some pensioners will be worse off, but others will be better off.
The Johnstone system was a 50% discount on general rates after early payment and State Government rebates, to a maximum of $350 per annum. Where a couple comprised a pensioner and a non-pensioner a half discount applied. This benefited 1,364 ratepayers and cost all other ratepayers $435,000.
The system that applied for Cardwell was up to 50% discount on most charges, but was only granted to full pensioners who passed a long term residency test. It benefited 317 ratepayers and cost $146,000. The maximum benefit was $500 per annum.
The new Cassowary Coast Regional Council system is a compromise between the two systems.
It will cost other ratepayers slightly more and will deliver benefits to more recipients – a total of 1,979 compared to the 1,681 combined total for last year. The benefit will be 50% on general rates after discounts up to a maximum of $300 per annum.
It is the stated intention of Council to further reduce the maximum discount to match the level provided by the State Government. This is standard practice for many councils in Queensland and compares favourably with arrangements in other States. It would involve a reduction to $180 per annum, at current levels, over several years.
Put simply, our difficult financial position requires all to bear the burden and it is unfair on the vast majority of ratepayers to expect them to subsidise pensioners at levels in excess of the pensioner rebates common in Queensland and other states.
The Cassowary Coast Regional Council budget, after depreciation, delivers a surplus of $24,000 after allowing only $1million (out of $60 million income) for capital works. The capital works program will in fact total $29 million, due to the funds available from the depreciation charge and subsidies. With these sorts of figures and strong financial management, I would like to think that in as little time as two terms, our capital works backlog will be substantially behind us.
This can only be delivered through sustained strong financial discipline by council and the efforts and understanding of our people. The pain may be less if the general economic growth we hope for can be achieved.
Here again is the need for balance, to ensure that our environment and life style are protected in the process.