Another Liberal Breaks Ranks

South Perth MLA, John McGrath, has joined Perth MLA, Eleni Evangel, in opposing at least the detail of Colin Barnett's forced local government amalgamations.

Victoria Park does rely significantly on revenue from the Casino, which Barnett proposes to transfer to the City of Perth (along with the site of his proposed stadium) and this might be taken as evidence that it is not a financially viable local government. However, removing the Casino/stadium from Victoria Park and then merging the rest of it with South Perth disadvantages not only Victoria Park ratepayers but also those of South Perth. The revenue loss (plus the cost of amalgamation minus any, probably illusory, efficiency gains) will have to be made up across the new municipality as a whole.

And what is this for but to provide a subsidy to businesses (and possibly, the small number of residents) in the CBD of Perth. The revenue from the Casino is $2.8 million a year (not $16 million as reported in the West Australian) with only a fraction of this being spent in the immediate area. This is 4% of the rate revenue of the City of Perth. Other things being equal, City of Perth ratepayers could expect a rate reduction of around 4% as a result.

84% of the City of Perth rates revenue comes from office and commercial properties, with only 15% from residential properties, so the lion's share of this unearned dividend will go to business and commercial property owners.

Contrast that with the ratepayers of Victoria Park and South Perth. $2.8 million is equivalent to nearly 5% of their combined rate revenue; other things being equal, Vic Park/South Perth ratepayers (mainly residents and small businesses) could expect a rate increase of 5% as a result. That would be a substantial chunk out of any financial efficiency dividend.

Victoria Park/South Perth, like Vincent and other inner urban municipalities, has to bear financial, social and environmental costs caused by the thousands of cars (often with just a single occupant) that pass through them twice every day simply so that their occupants can get to and from work in the City of Perth. Perhaps it is time for the City of Perth to make some recompense - logically from the $60+ million parking revenue it receives every year (even after paying $10 million State Government parking licence fees) from those same car drivers.

Perhaps it is time, also, for the State Government to make a contribution from its parking licence fee revenue, which currently has to be spent within the boundaries of the City of Perth.