Mr DEAN - Mr Chairman, in relation to this issue, local government has been in the press a lot. Unfortunately, during the previous Estimates process there was insufficient time in which to continue and complete the questioning in this area, and I just have one question here that relates to local government. There has been a lot of talk about the AAV system and the setting of rates. I would like an explanation of the position that has been taken by Brighton , and now followed by a number of other councils, in relation to the setting of rates.

The Local Government Act 1993, section 90 subsection (3), set the parameters for the setting of rates. Rates must be calculated on that system of land valuations, and there is no room to move outside of that system. The Auditor-General also says that in his latest report, that councils must comply with those sections within the Local Government Act. What is the position with the principle or the criteria on which Brighton Council have set their rates and which has now been followed by some other councils? Does it fit within section 90 subsection (3) of the Local Government Act?

Mr PARKINSON - My advice indicates that there has been nothing presented to the Government to indicate that they are acting illegally; we are assuming at this stage that they act legally.

Mr DEAN - Thank you for that. As I have asked a question in the Parliament, I take it that the Government will now look at that and consider that and come back with an answer on it.

Mr PARKINSON - If somebody suggests that they are acting illegally, I presume the Local Government Office will look at it. Apparently it has been looked at already by the Auditor-General, but you have made the point.

Item agreed to.