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| Ian Gilfillan Australian Democrats Member of the Legislative Council |
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Legislative
Council |
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| Ian Gilfillan Australian Democrats Member of the Legislative Council |
Parliament Index |
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Debate on the Local Government
package of Bills. i.e.
This page covers only the Democrats amendment which sought to remove the automatic exemption from rates enjoyed by Council-owned businesses. For an index of other topics covered in the Local Government Bills, see the Democrats Local Government page, or the 1999 Budget Session Index |
Clause 148.
The Hon. IAN GILFILLAN: I move: Page 111, line 32—After `(as the case may be)' insert: `, except any such land occupied by a subsidiary that is involved in a significant business activity' This amendment is in regard to rateability of land. Clause 148(2) provides: The following is not rateable: Paragraph (g) provides—remembering that this is land which is not rateable: land occupied by a subsidiary where the land is situated in the area of the council that established the subsidiary or a constituent council (as the case may be); I am seeking to include `except any such land occupied by a subsidiary that is involved in a significant business activity'. This is in the cause of some degree of neutrality in the competitive principles. I can only guess that it could possibly be challenged down the track by the ACCC: if a subsidiary is competing in an open market with another company that is on rateable land and the subsidiary is allowed by the council to operate on a non-rated property, it could be challenged. Apart from that, it is just related to the principle of fairness regarding the operations. The council would still have a discretion to grant a rebate under clause 160. Although the Government has an amendment to schedule 2 that it claims addresses this issue, I still believe that my amendment is important, because it removes the prohibition on rating subsidiaries. It still gives a council a discretion and therefore more autonomy, but it quite clearly sends a signal that subsidiaries are not automatically rates exempt.The Hon. DIANA LAIDLAW: The Government opposes the amendment. The Hon. Ian Gilfillan is seeking to ensure that these business subsidiaries pay rates. He is making it mandatory to do so. He has alluded—
The Hon. Ian Gilfillan: I am sorry? The Hon. DIANA LAIDLAW: I said `mandatory'; that they would not be exempt from paying rates. The Hon. Ian Gilfillan interjecting: The Hon. DIANA LAIDLAW: That is my advice in terms of the impact of this amendment. The Hon. IAN GILFILLAN: My amendment provides: , except any such land occupied by a subsidiary that is involved in the significant business activity The Hon. DIANA LAIDLAW: Yes, but for those it would be mandatory. We say that that is not acceptable; that to lump all of those business subsidiaries in those circumstances into one bucket and say that it is mandatory to pay rates is not acceptable. We believe that the individual circumstances in each instance should be taken into account, and that is what we are seeking to do with our amendments to schedule 2. The amendments take into account the individual circumstances applying at any one time to any of these business subsidiaries. In part we accept some of the concerns the honourable member is expressing, but we would not wish to make it mandatory in such instances for these subsidiaries to pay rates. We will seek to accommodate a sort of halfway ground in terms of the matters raised by the Hon. Ian Gilfillan by moving our amendments to schedule 2. We believe that it is better business practice. The Hon. T.G. CAMERON: SA First supports the Government's position. Amendment negatived; clause passed.