Get Involved - Parliament

North Sydney Council

Published on: February 2025

Record: HANSARD-1323879322-149345

North Sydney Council

Ms FELICITY WILSON (North Shore) (20:19:45):

I address this place this evening on behalf of distressed and frustrated residents and businesses within my community. Late on Monday night North Sydney Council voted through an obscene 87 per cent rate rise after what was a bungled community consultation process. I addressed the council at its meeting. At that meeting I shared just snippets of the community feedback I have been receiving regarding these rate hikes. Council also heard from 43 other ratepayers, the overwhelming majority of whom opposed the increase—but council still voted to proceed. In council's own consultation process, only 5 per cent of ratepayers supported this 87 per cent massive increase during a cost-of-living crisis.

I have received thousands of submissions to my own rate rise survey and I have documented almost unanimous opposition to council's alarming proposal. In fact, I received more than double the contributions that council did in its own survey. This has been the single most unifying issue within my electorate in my eight years as the member for North Shore—and the North Sydney Council accounts for only half of my electorate—and still North Sydney Council pushed ahead with its proposal. This is a classic case of severe financial mismanagement. Council highlighted a budget surplus in its June 2024 financial results and indicated no financial risks in that documentation, so how can its financial position have taken such a nosedive in a matter of months? Why are residents and businesses being asked to bear the brunt of the council's fiscal failure to dip into their pockets to line the pockets of what is a financially reckless council?

What has council's response been to deal with this? It has only proposed to raise rates and has not proposed spending cuts, efficiency projects or a reassessment of council's assets. The councillors have not looked at ways in which to better manage their books. In fact, on top of not proposing any efficiency measures, the council has proposed $150 million of entirely new spending on entire new projects—and my community is rightly outraged. My community also knows that when this council promises to spend $150 million on projects, it will likely blow out tenfold in the end. The council's rate rise represents a blatant disregard for community consultation and input. It occurred over the Christmas and New Year period, allowing ratepayers almost no time to question the proposal and provide feedback. It offered only closed options. Everyone who participated was forced to support one of the rate rise options—a minimum of 65 per cent up to 111 per cent.

Shockingly, the council was also closed for a week of that consultation period and, worse still, council appears to have willingly ignored what was overwhelming opposition to its special rate variation proposal, leaving members of my community feeling completely dejected and overlooked. As their elected representative, I want to ensure that North Shore locals concerns are heard. North Sydney Council's astronomical rate rise is not just a number; it is a real burden for families, seniors, single parents, small business owners and renters in our community. Unfortunately, instead of finding a fairer and more sustainable solution or simply cutting unnecessary spending, council voted in favour of this extreme rate rise. My community is calling for the council to be sacked and to go into administration, which is why I gave notice of a motion calling for the Minister for Local Government to establish a public inquiry under the Act into this council for its maladministration. I thank the Minister for meeting with me today and for ensuring that I can speak with the Office of Local Government to progress these concerns.

My community is struggling with the cost-of-living crisis just like any other and to be further burdened by this extreme almost doubling of council rates is the last thing my constituents need. More than 50 per cent of people in my community rent. More than 65 per cent of my community live in two‑bedroom dwellings or smaller. Some 90 per cent plus of the North Sydney Council area is apartments, townhouses et cetera, not standalone dwellings. As far as high rental costs go, the census data shows that 76 per cent of my constituents pay high rental costs compared with Greater Sydney costs of 54 per cent. In relation to mortgage costs, my electorate and my council area pays 54.5 per cent compared with the Greater Sydney area's average of 42.9 per cent.

The notion that there is a capacity to pay and a willingness to pay has been rammed home by the North Sydney Council, and the ignorance is astounding. I urge local ratepayers to continue the fight as the Independent Pricing and Regulatory Tribunal invites submissions from the community and evaluates council's application in April-May this year. I will ensure that I coalesce my community's views, but so much momentum is needed when local people are already feeling so defeated. I urge the Minister for Local Government to establish his public inquiry and work alongside us.