Rating pain

Amongst all the rhetoric and arguments for and against the Lee Valley dam there has been little mention of the issue of the ongoing costs of maintenance and operation.

The council has presented a funding statement which suggests that the annual operating cost will be $1.3 mand has also outlined a rating proposal.

The 2007 inquiry into local government rating addressed the rates affordability issue.

The panel of experts concluded that rates paid by businesses and farmers were generally about 4 per cent of operating costs. They suggested that anything above 5 per cent was unaffordable for many ratepayers particularly those on low or fixed incomes.

The panel also suggested that government should be contributing towards the cost of infrastructure for local authority water supply schemes.

My rates are $3300 p.a. and my pension is about $18,000 p.a. Rates absorb about 19 per cent of my pension.

Rates will be even less affordable after the dam charges take effect.

The new government has promised a regional development fund of $3 billion over three years.

If we are agreed that an enhanced water supply is essential then surely government must make a very substantial contribution to this project.