Griffith Business Chamber Lodges Response To Council’s SRV Proposal

The Griffith Business Chamber has lodged its response to Council’s proposed application to the Independent Pricing and Regulatory Tribunal (IPART) for a special rate variation (SRV).

President of the Chamber, John Nikolic said they had considered Council’s proposed SRV and thanked Council for its efforts to consult with the community.

He said there was little doubt that Council was being asked to do more with less.

“Council’s budgetary deterioration is largely due to factors beyond its control, including interest rate rises, State government cost-shifting and reduced federal grants,” Mr Nikolic said.

“The Chamber also keenly appreciates the importance of maintaining local government services, which is essential to attract and retain workers to our city.

“However, the proposed SRV is significant.

“Assuming an IPART-pegged increase of 3 per cent per year, the proposed SRV of 7.5 per cent would mean a 10.5 per cent annual increase over three years, or cumulatively 34.92 per cent.

“This would compound sustained increases to the cost of doing business, including recent rises to interest rates, energy costs, wages, insurance premiums and freight fees.”

Mr Nikolic said those costs had already diminished business confidence, which recent surveys have shown are near an all-time low.

“In the circumstances, the Chamber considers that Council should consider revenue raising alternatives, as well as ways to reduce operational costs in order to reduce the magnitude of the proposed SRV,” he said.

“Most businesses are now thinking about ways to reduce operational costs.

“Council can do the same - therea re significant opportunities to install solar panels on government-owned buildings, carparks, etc.

“Council can also go further - we think it should emulate the entrepreneurial spirit of the city and region it represents and creatively consider ways to increase revenue.

“Chamber members have suggested ways Council could cautiously monetise some of its services, including by introducing long-stay paid parking at the airport, increasing lease and licence fees for Council-controlled land to commercial rates, or even hiring Council’s skilled workforce (in civil, plumbing and electrical trades) to other councils on a fee-for-service basis.”

Mr Nikolic said if cost-cutting and revenue raising measures were planned for and implemented, the Chamber considered that a single, significantly lower SRV would be feasible, which would be less likely to negatively impact on business confidence.

“A single annual increase, which Council has also modelled, is also preferable, as the proposed SRV over three years would compound and prolong the increase in rates, potentially diminishing or delaying any rebound in business confidence,” Mr Nikolic said.

• Topics:

• Local Economy / Business
• Local Council