CONSISTENTLY HIGH shortfalls in the funding of public cleansing, street-lighting and fire services, has triggered proposals from the Government for new taxation measures to sustain them.
Minister of Local Government, Youth and Community Development, Arnold Bertram, tabled a Green Paper in the House of Representatives Tuesday, detailing proposals for the new measures.
Mr. Bertram also tabled an information sheet showing that for this year the budget for the services is showing a 50% shortfall. This compares with 43% in 1998/99 and 45% in 1999/2000.
The Government had decided in 1993 for property taxes to be used to fund public cleansing, street lighting and the fire services, all of which come under Local Government. However, inflows from property taxes have not been sufficient to support the intended expenditure.
The Ministry of Paper proposes a number of measures to provide "sustainable financing for an improved delivery of the local services." These measures are:
Re-introduction of local rates for property-related services (fire, solid waste management and street lighting).
Designation of property taxes for property-related services in rural areas, rehabilitation of parochial roads and community development grants.
Establishment of a commercial services division in each Local Authority in order to increase revenues from user fees, fines, trade and spirit licences, improved asset management and commercial services including markets, transportation centres and cemeteries.
Provision of loan facilities and other specific mechanisms for capital investments and parish infrastructure development through Central Government.
Fuller utilisation of the technical capacity in local authorities in the maintenance of community infrastructure, including basic and primary schools.
Collaboration with other state agencies of the state to prevent duplication and to promote a more rational use of national resources.
Mr. Bertram said that the changes were important in light of the fact that approximately 45 per cent of the cost of maintaining the local services were not being met.
He said that the Green Paper was consistent with the Government's policy of facilitating wider public debate on the proposed tax measures. He said that he was inviting enthusiastic public response to the proposals, as the matter of adequate funding for local service should engage the public's attention.
