NATIONALS PLAN TO REDUCE RATE RISES

A plan put forward by The Nationals Member for Gippsland Province PETER HALL would help to reduce the need for annual municipal rate increases.

With local Shires all budgeting for rate increases in the 2006/07, Mr Hall said Local Government should receive a percentage of GST revenue.

"The Nationals have released a Local Government Policy Discussion Paper which proposes a percentage of GST revenue be provided directly to councils," Peter Hall said.

"Our plan is to start with 1% of GST revenue and increase it to 3% over a period of time. The end result would be more money for local councils to carry out important infrastructure improvements without the need to increase rates."

Mr Hall said the proposal had been well received throughout Victoria and has urged the Bracks Government to listen to the concerns of rural and regional Victorian councils.

All State Governments throughout Australia receive the full benefit of the revenue raised from the GST and Mr Hall believes local councils should receive a fairer share in the future.

"Local councils throughout our region are finding it difficult to keep up with the increasing demands for services; cost shifting from other levels of government; and maintenance of basic infrastructure like roads and bridges," Mr Hall said.

"Under The Nationals proposal, the State Government would provide a set percentage of GST revenue directly to councils to spend according to local priorities.

"There would be 'no strings attached' and the locally elected councillors would be responsible for setting priorities.

"In the first year, the system would generate about $100 million extra funding for local government throughout Victoria, increasing to $300 million.

"The Nationals are very aware of the difficult financial situation facing rural and regional councils throughout the State.

"Melbourne Labor should adopt this common sense policy in the interests of country Victoria.

Media contact: Peter Hall (03) 5174 7066 mobile 0427 747 066