NSW Local Government Minister Don Page says he understands the concerns of families who have today learned that their council rates will increase as a result of the Federal Government’s carbon tax.

Mr Page said the decision by the Independent Pricing and Regulatory Tribunal (IPART) to allow NSW councils to increase their rates by 3.6% next year was influenced in part by the predicted effects of the carbon tax on councils.

“I believe it is significant that 11 per cent of the increase allowed by IPART today is to cover costs associated with the carbon tax,’ Mr Page said.

“The effects of the Federal Government carbon tax have worked their way down to our suburbs, to our neighbourhoods, and to our councils.

“The decision by IPART to allow an increase in council rates has been made with consideration to a predicted rise in the costs associated with delivery of services to ratepayers, and IPART acknowledges that the carbon tax is part of that.

“The fact is that the carbon tax will impact on family budgets – and that now includes the cost of council rates for essential daily services in our communities.

“I feel for ratepayers who will see their rates driven up by the carbon tax and I feel for councils which say that they will find it difficult to meet the demands of ratepayers unless they adopt the rate increase of 3.6% allowed by IPART today.”

Mr Page also urged councils to consider whether there was a need for a rate increase in their area, to strongly consider the effects of a rate increase on their ratepayers, and to ensure that ratepayers’ money is spent appropriately.