The State Government will not consider legislation for a Local Roads Levy on Kangaroo Island without the support of the Member for Finniss Michael Pengilly.
Mr Pengilly says he will not give his support to the levy until he has “a clear view” of the public debate and reaction to the levy and has seen the legislation.
Minister for Regional Development Paul Caica was on Kangaroo Island last week for a full day of meetings with primary producers and others in his role as Minister for Agriculture, Food and Fisheries and Minister for Forestry.
He met with the Kangaroo Island Mayor Jayne Bates and the council’s chief executive officer Carmel Noon.
The council wanted to assess whether he would be the sponsoring minister to put legislation to the State Parliament.
The council was keen to have the legislation pushed through in the last 18 sitting days of parliament later this year, to take effect from April, 2012. The $10 levy on visitors is projected to raise $1.8 million a year for road maintenance on the island and to make the council financially sustainable by about 2017.
Mr Caica said he would not be the sponsoring minister “and no one is keen take it on without the support of the local member and the Liberal party because it will be used as a vehicle for division and dissent”.
He said the matter had not been discussed in a Cabinet meeting on Monday but had been discussed among colleagues.
The same message, through other channels, has come from the offices of the Infrastructure Minister Patrick Conlon and the Local Government Minister Gail Gago - other ministers who have been lobbied by the council.
Mr Caica said he was “confused” because Mr Pengilly appeared to have supported the levy originally. He said the Liberal Party would “create a nuisance” if they did not support the levy.
“We’ll support it because it is good for the island, not for political reasons,” Mr Caica said.
Mr Pengilly said he had always opposed a tourist levy when he was a Kangaroo Island councillor and mayor.
“Having said that, I know exactly where they’re (the council) coming from.”
Mr Pengilly said he supported the council in its quest to find an extra source of income.
He said there were already three levies on Kangaroo Island visitors and residents – State Government wharfage fees and council lease fees paid by Sealink and the passenger levy paid by airline passengers. These levies amount to about $1 million a year.
“The issue is bigger than just the popular debate. The Liberal Party nationally, and indeed Premier Rann, have committed to no new taxes. There are another 67 councils out there who could all start seeking special legislation,” Mr Pengilly said.
He said a better solution was to resurrect the Premier’s Infrastructure Fund, which had achieved some major projects on Kangaroo Island in the past, such as the sealing of the South Coast Road and the desalination plant at Penneshaw.
Ms Noon said there already had been extensive public debate and consultation about the levy over the past six to 12 months.
She said surveys by TOMM and Access Economics had shown overwhelming support for the levy from residents.
She said there was a feeling among residents that tourists should “play their part” in funding infrastructure.
Public consultation so far this week had attracted two people at Kingscote, five at American River and one at Parndana. Ms Noon said this highlighted there was little public concern.
“A tourist operator who came to the Kingscote meeting had arrived feeling very negative about the levy but left supporting it, after we had been through the figures and the documents with him,” Ms Noon said.
It is believed Mr Pengilly and Oppostion Leader Isobel Redmond will meet with Ms Bates and Ms Noon this week.
At its board meeting on Tuesday, Tourism Kangaroo Island passed a resolution strongly opposing the Local Roads Levy.
Boad chairman Pierre Gregor said the board had received feedback of overwhelming oppostion to the levy from its more than 200 members.
$20,000 REVIEW
The report “Big push for $10 levy” (The Islander, 17/9/09) included a reference to the Kangaroo Island Council undertaking a review of the works and customer service areas.
The cost of this review will be about $20,000, not $200,000 as reported by The Islander.
“Council is confident that we will recoup the $20,000, further financial savings and improved efficiencies will be made through the review process,” said the council’s chief executive officer Carmel Noon.
The Islander apologises for the error
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