COUNCIL in its Draft Delivery Program and Operational Plan 2015-2016 has proposed a very significant rate cost shift from Nowra CBD land owners (-30 per cent) to those in South Nowra and the 40-plus coastal and rural villages and towns of the Shoalhaven (+20 per cent).
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The outcome of this plan will be a double whammy rate hike for Shoalhaven residents; the cost of the Nowra CBD rate redistribution, plus the proposed residential rate increase for the three years, commencing from 2016-2017, of potentially 7.4 per cent per year.
This redistribution of rates burden from the Nowra CBD to other retail centres will effectively be a direct cost to residential rate payers in three ways.
First, council will forgo rates from Nowra CBD landowners, potentially in the millions, where there is very little likelihood that this largesse will be passed on to consumers in reduced prices.
Second, the additional rate costs to South Nowra retailers will be immediately passed to Shoalhaven consumers, effectively a rate increase for Shoalhaven residential ratepayers.
Third, the additional cost to the retailers of the 40-plus coastal and rural villages and towns of the Shoalhaven will be passed onto both local residents (ratepayers) and tourists alike with a further risk to youth employment opportunities and the impost on self-funded retirees who are a considerable portion of the Shoalhaven community.
The winners of this proposal are a small selection of wealthy Nowra CBD landlords. The losers: Shoalhaven consumers and residential ratepayers, Shoalhaven business confidence, youth employment and self-funded retirees. Nobody misses out – a very equitable plan.
A. Burrows,
Huskisson.