Cr Murray was commenting during discussion at last week's council meeting on the interim report of the independent Inquiry into the Financial Sustainability of NSW Local Government.

The interim report has found that State Government rate pegging, cost increases and shifting of State Government responsibilities to local government have resulted in a $6.3 billion shortfall in revenue for local councils' infrastructure needs.

Council director of corporate services Barry Paull said previous councils' decisions not to increase rates to the extent allowed under rate-pegging had cost council $22 million in rate revenue since 1996.

Together with low rates at the time of council amalgamation, the decision had left Wingecarribee Shire's rates lagging behind those of other NSW councils.

"There is no capacity in the rate pegging legislation to catch that up," he said.

Cr Sara Murray said council needed to highlight the inequality of rates between shires in its response to the inquiry's interim report.

Full story: SHN, Monday, March 27, 2006.