Month: April 2003

Treasurer Ted Quinlan has certainly got his politics right with the new rates system – at least for the short term.

Whether he has the long-term financing right is another matter.

Quinlan introduced his rates legislation this week in line with an election promise that would cap rates increases for existing residents to the consumer price index. However, if a resident moved to another dwelling the rates would be set according to the value of the new property at the time of moving and only thereafter locked in to the CPI provided the resident did not move.

The short-term political benefit is that there will be no yelps from the suburbs when rates jump with increasing property values. Property values go up unevenly. So often the big increases will hit one or two areas. And residents of those areas scream in vote-changing ways. If the rates only go up by the CPI there will be no quarterly reminder of a major government sting.

Further, when people move to a new dwelling, they expect the rates to change, so it not a politically sensitive issue. When the move the new rates hit gets subsumed by the other large sums of money that go with a property transfer.

The CPI method will also apply to rented investment properties for as long as the property is held. So no ugly reminders of rate hikes even for investors.

That all helps Quinlan and the Stanhope Government to the next election.
Continue reading “2003_04_april_forum 5 apr rates”

The legal tide went out for Guy Edward Swain.

Swain dived into the water at Bondi Beach on November 7, 1997. He hit a sandbar, broke his neck and is now in a wheelchair for the rest of his life.

He sued Waverley Municipal Council which managed the beach.

Swain won $2.8 million damages after a trial before a jury of four.

An appeal by the council was allowed by the Court of Appeal this month. Swain is now left with a large legal bill and no damages. Inevitably, he will now be looked after by his own family and the state. It highlights the need for better care for the catastrophically injured who get no compensation, but that’s another story.

At the time of the original award, the case made headlines. Where would it end, all this suing for ordinary accidents? Insurance premiums were going through the roof.

Organisations like Waverley Municipal Council were copping huge rises in insurance premiums for public liability, as were hundred of charitable organisations running money-raising events. Their answer was to abandon surf patrols or to cancel the charitable events, especially as the insurance was often compulsory or required by lenders.

The reaction of State Governments was knee-jerk. They introduced laws to restrict access to damages and to cap the amount of damages. Sadly, the ACT seems to be set to follow suit, because the judges are responding without legislation.
Continue reading “2003_04_april_forum 12 april negligence”