PRIME Minister Julia Gillard has dodged the issue of the government’s carbon tax causing rate increases after Wannon MP Dan Tehan questioned her in parliament this week.
Nanjing Night Net

The Municipal Association of Victoria (MAV) is estimating the carbon tax scheme could force local councils to raise rates by up to three per cent.

Mr Tehan said when questioned on Monday, Ms Gillard failed to reassure ratepayers there would not be a flow-on effect to council rates.

“The Prime Minister spent three minutes dodging this issue; three minutes refusing to give a direct answer to a clear question,” he said. The Prime Minister simply refused to come clean about whether ratepayers will be slugged with higher rates as a result of the Labor government’s carbon tax.

“Regional and rural councils are already struggling to make ends meet. An additional cost burden such as the carbon tax will see them being forced to pass on the costs to residents.

“This is on top of already skyrocketing electricity costs and other cost of living burdens that will only go up under the carbon tax a tax that Prime Minister Gillard promised the Australian public she would never introduce.”

MAV president Bill McArthur said a survey was under way measuring the expected pressures a carbon tax would place on council costs.

The workshops were indicating a likely rate increase between one and three per cent, Mr McArthur said.

“There’s no compensation package in there for local government.

“We know the carbon tax will increase a number of utilities.

“We will have pretty firm evidence very shortly.

“It’s just another pressure on the rates system, another cost of living.”

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