Councillors' Hike In Pay To Lead To Higher Rates
The Age
Friday March 28, 2008
VICTORIAN councillors are about to receive pay increases of about 30% and new superannuation provisions, which are expected to lead to higher council rates in many cash-strapped, rural municipalities.
Local Council Minister Dick Wynne has approved the increase, which was based on consumer price index rises since 2000, when councillor salaries were last reviewed. While cabinet has not endorsed the new package, which includes allowances for mobile phones and personal commuters, a spokesman for Mr Wynne confirmed an announcement was imminent.Most Victorian councillors receive between $12,000 and $15,000 annually, with remuneration determined by the municipal population and revenue base.Municipal Association of Victoria president Dick Gross said a rise in salaries was long overdue and called for a substantial increase in federal funding for local government."We're confident that the minister will strike the right balance between rewarding councillors for the vast amount of hours they work and ensuring it's affordable for local communities," Cr Gross said.But he conceded that many drought-stricken municipalities would struggle to absorb the pay hike. He said the association would lobby the Federal Government for a $30 million regional infrastructure fund to assist struggling councils. He said Commonwealth funding to local government had been slashed from 1.2% of total tax revenue in 1993-94 to less than 0.7% last financial year.The Victorian Local Governance Association is unlikely to be impressed with the increase, after requesting a 100% hike in its submission to the State Government last year. Its acting chief executive Darren Ray said more than 80% of councillors worked in excess of 30 hours a week.
© 2008 The Age
