It may be modest, but Labor mayoral candidate Loretta Baker believes her plan to relieve rates for residents is a step in the right direction.
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Labor is proposing a reduction in the special rate variation that would see rates fall by an average of $100 per ratepayer as a one-off benefit.
The special rate variation was implemented in 2014 after the Independent Pricing and Regulatory Tribunal approved a 7.25 per cent rate rise annually for seven years.
The rate rise was introduced to help council deliver new and enhanced infrastructure and services.
Cr Baker said after the rate rise was introduced, electricity prices also started to climb.
She said when she had spoken to residents on the campaign, electricity prices were one of the main issues people were talking about.
“We know how stretched household budgets are, particularly after the 20 per cent increase in electricity prices last month,” Cr Baker said.
“Maitland City Council can’t reduce residents’ retail electricity prices, but we can slow the increase in rates so people have a chance to get ahead.”
Cr Baker conceded that $100 was a “modest” relief, but said it was a starting point.
“Something is better than nothing,” she said.
By comparison, she said a $100 increase on an electricity bill would have a big effect on residents.
Labor’s proposal would involve revisiting the special rate variation and believed there were “savings to be made” within the council budget.
Cr Baker said it would only be a one-off at this stage and would not be able to be introduced until next year.
Council can’t reduce residents’ retail electricity prices, but we can slow the increase in rates so people have a chance to get ahead.
- Cr Loretta Baker
“We have to be responsible,” she said. “We’ve already got a budget there.
“This is a sensible – and I think necessary – community measure that won’t lead to any local services being cut.
“This is what we believe we can reasonably do. We know it can be done.”
Cr Baker urged others in the running to get on board with the idea.
“I’m calling on other candidates to support our proposal so that ratepayers across Maitland are given a bit of financial relief,” she said.
Independent mayoral candidate and councillor Philip Penfold has called the idea a “political stunt” after Cr Baker moved to adopt the 2017/18 rating structure in June, which included a general rate increase of 7.25 per cent.
What do you think?
Email your thoughts on the issue to maitland@fairfaxmedia.com.au.
Sage Swinton
Sage Swinton is a news reporter who was born and bred in the Hunter. She has been with the Newcastle Herald since June 2020, and covers Newcastle council as well as other general news.
Sage Swinton is a news reporter who was born and bred in the Hunter. She has been with the Newcastle Herald since June 2020, and covers Newcastle council as well as other general news.
