Corangamite Shire Council has called on the State Government to rethink the Emergency Services Volunteer Fund (ESVF) Bill that Parliament passed this week.
The State Government yesterday announced it was giving hardworking emergency services the funding and equipment they need – so communities can respond and recover from floods, fires and storms.
Mayor Kate Makin said she was astonished to see the State Government take credit for funding paid for by the hard-working ratepayers of Corangamite Shire and other municipalities.
Mayor Makin said the scheme would cost farmers thousands of dollars a year more than the Fire Services Property Levy it replaced.
"Council is disappointed to see the ESVF Levy passed by Victorian Parliament and for the State Government to take credit for the extra funding is a slap in the face to the hard-working members of our community.
"While the rate to be paid by primary producers has been reduced from what was initially proposed, it still represents a significant increase.
"The way the levy is calculated will cost all ratepayers but is an especially hard hit for farmers who are already hard-hit by drought, cost-of-living pressures, bushfires, and economic challenges.
"It will have significant repercussions for the viability of businesses that are major contributors to the Shire, regional and state economy.
"There is also the human cost of adding this extra stress to the agriculture industry which is already battling a mental health epidemic.
"This makes Council look like the bad guy which can't be good for our relationship with the community we are here to support.
"There is also no guarantee funds collected from rural communities won't be siphoned off to other parts of the State. Emergency services need to be funded in the places where the revenue is collected.
"Council recognises we are in one of the most fire-prone areas in the world, and it's a positive that the ESVF extends to the critically underfunded SES, but there are better ways to do it."
Cr Makin said Corangamite, along with other rural councils across the state, has made multiple appeals to the State Government since the new system was first suggested.
In January, Corangamite wrote to Treasurer Jaclyn Symes, Local Government Minister Nick Staikos, Emergency Services Minister Vicki Ward, Shadow Treasurer James Newbury, Shadow Emergency Services Minister Danny O'Brien, and Shadow Local Government Minister Bev McArthur.
At their February meeting Councillors resolved to submit a motion to MAV on the issue.
In March, the Mayor and Chief Executive Officer, David Rae, met Treasurer Symes, Minister Staikos, Mr O'Brien, and Mrs McArthur in person in March to seek assurance the Emergency Services Volunteer Fund Levy would be spent where it is raised.
"If our farmers have to cop the huge rise in cost, they need to know they will get a fair and proportional services in return," Cr Makin said at the time.
The levy will increase costs for many rural ratepayers by more than 100%, despite councils being restricted to a 3% cap on rate increases.
Council's initial analysis indicates it will extract $8.9 million from the local community, with little return to support emergency services.
The Council values the critical role of emergency services and acknowledge the importance of supporting volunteers, however the implementation raises administrative concerns. Systems for assessing and tracking volunteers also remain unclear. These unresolved issues risk undermining the intended benefits of the policy.
Corangamite Shire Council calls on the State Government to:
- Reassess the funding model to ensure fairness for rural communities.
- Shift levy collection responsibilities to the State Government.
- Compensate councils if they must continue administering the levy.
- Improve communication on the levy's purpose and use.
The Council urges an urgent review and is willing to work with the government on a fairer, more sustainable funding approach.
