Labor breaks core CPI rate cap promise

Shadow Minister for Local Government, David Davis

Daniel Andrews and the Labor Party are set to breach their core election promise to cap rates at the CPI.

Labor today introduced the Local Government Amendment Bill into Parliament.  It provides for a complex and fundamentally dishonest system that allows Labor to breach its election promise.

The Bill enables the Minister to effectively set the cap herself.  Rates will be capped at the whim of Natalie Hutchins not the true CPI.

The Bill uses a ‘CPI’ “forecast” by one of the government’s own officials rather than the actual CPI.

There is also a simple question for the Minister: why did she not cap rates in this year’s council budgets to the 1.1% rise in CPI to 30 June 2015 (instead allowing an average 3.8% rise)?

Quotes attributable to Shadow Minister for Local Government, David Davis:

Daniel Andrews is breaking an election promise because he is now refusing to cap rates at the actual CPI figure.

Labor is wanting to rely on its own ‘CPI’ forecast and formula which is to be tweaked by the Minister.

The real CPI is a well-known and long-standing figure published by the ABS.  It has authority, simplicity and is understood by consumers and rate payers.

The actual CPI figure is not a concocted and bogus index, subject to the whim of this Minister or boffins with crystal balls.

It is hypocritical of Andrews and Labor to point the finger at councils when they are jacking up state taxes and charges way over the CPI.  Daniel Andrews is cutting state funding to councils, tearing out funding for programs like the Country Roads and Bridges Program.

Media contact:      David Davis 03 9888 6244 or 0419 000 212