Differential rates battle looms

A STATE Government decision to prevent councils using differential rates for gaming venues has been slammed by the Municipal Association of Victoria, the body representing the state’s 79 councils.

Local Government Minister Jeanette Powell has quashed any hope councils may have had of introducing higher rates for gaming venues, liquor licence outlets and fast food stores.

Ms Powell said the new ministerial guidelines on the use of differential rates prevented councils from “creatively extending their taxation powers”.

“The new guidelines make it clear that the use of differential rates by councils to pursue controversial social policy agendas is not appropriate.”

But MAV president Bill McArthur said the restrictions were a direct assault on the autonomy of councils to make decisions about equitable rates.

“Aside from the questionable validity of the guidelines, we are concerned that they will undermine the primary principal of equity in favour of appeasing certain vocal interest groups,” he said. The MAV is seeking an urgent meeting with all councils to discuss the reforms and obtain further legal advice.

Maribyrnong has Melbourne’s third-highest rate of pokies losses per adult, with more than $56 million lost last year to the area’s 439 gaming machines — about $16 million in Braybrook alone.

Gamblers in Hobsons Bay lost $52.6 million on the pokies last financial year, with adults losing an average of $763 each.

A study conducted by Maribyrnong Council last year found pokies came with social costs including crime, job loss, depression, relationship breakdown and suicide.

The council has moved to crack down on the number of pokies being deliberately introduced to disadvantaged areas.

Monash University public health senior lecturer Charles Livingstone said differential rates on pokies venues should be considered provided revenue went to appropriate services or covered the costs of assessing complex gambling venue applications.

“I am very interested to see the state government decide it would fall on the side of the gambling lobby when it came to this issue,” Dr Livingstone said.