Welcome to Ratepayers Victoria Incorporated, advocating for Collaboration, Accountability & Transparency. Our 2022 vision is a future where Victorian ratepayers are highly connected, value adding and engaging to increase their councils’ and state agencies’ propensity to achieve higher council rates affordability and local liveability. Our blog highlights the latest news and issues affecting ratepayers. Visit our Facebook.
Councils who wish to increase next financial year’s rates will need to ensure they inform their community of their business case for raising rates above the cap.
The Essential Service Commission (ESC) has issued guidelines to help councils engage effectively with their communities, to ensure they provide top quality information, to ensure their communities become well informed of their councils’ decisions to increase rates above the cap.
The guidelines are available online for the public to view and understand the evaluation criteria ESC would use to assess whether councils have genuinely engaged with their communities. Ratepayers can assist to evaluate if their councils have followed these guidlines properly. If their councils have not, ratepayer advocates can provide the factual evidence to justify the non compliance and share with Ratepayers Vic to quality assure and facilitate forwarding community concerns to the ESC. They should also discuss the concerns with their councils, to agree improvements, while also taking leadership in fostering good community rapport with councils, helping them improve their organizational learning.
ESC is also presenting the guidelines to ratepayer groups who are interested to understand their councils’ obligation in community engagement, when they apply for rates variation this year. We are collaborating with ESC to discuss with our ratepayer networks these community engagement guidelines for councils’ 2017-2018 budget planning on 4th March 2017, at the Knox Council Offices, 511 Burwood Hwy, Wantirna South VIC 315. We are also having an earlier session with Local Government Inspectorate that day. Connect with our https://www.facebook.com/ratepayersvictoria/ to keep up to date.
Regional/rural ratepayers groups can come together and contact Ratepayers Victoria (email RatepayersVictoria@outlook.com) to organise a similar workshop with ESC in regional Victoria.
In December 2016, team members were identified and approach to form a project team. They met in early Jan 2017, and preliminary requirement research followed.
The following is a summary of the research highlights (click here for the detailed report) so far:
- Good governance is meant to be a conduct and practice integrated performance management framework for governments and their agencies, including down to the lowest level of municipal councils and their peak bodies.
- It is part of a bigger corporate governance framework, already defined in DTPLI’s Council Governance webpage, comprising of the following sections, categorised and re-organised as follows, for deeper gap analysis.
- A gap analysis of the above corporate governance framework reveals the following:
Good Governance Framework
Operational Control Framework
|1) There are no state-wide community engagementguidelines for councils:||2) Operational control areas have not been structurally designed and aligned to the core operational functions of a council3) State directed service provisioning controls are missing, a major gap when municipal service provisioning is the core business of councils.|
4) Integration of these state corporate governance areas in councils’ frameworks is discretionally translated by each council. This has resulted in the growing prevalence of good governance and operational performance quality issues in and across councils, including varying and often lacking compliance policing intensities and offence handling.
These findings have lead the project team to focus on defining the governance KPI for supporting council decision making and community engagement. The next step is to interview several stakeholders from selected council, state agencies and peak bodies, and MPs who have contributed and/or supported to developing past and present LGPRF versions. Interviewees will be carefully selected to avoid politicized influencers and reputed good governance offenders, to choose people who are committed to improve the LG system and attain its highest governance integrity.
For full details of the findings, click here.
Ratepayers Victoria (RV) is starting the new year with a new five years strategy plan. This plan directs our focus to create a 2022 future where Victorian ratepayers are highly connected, value adding and engaging to increase their councils’ and state agencies’ propensity to achieve higher council rates affordability and local liveability.
To realise this future, there are 3 objectives to be achieved within the next 5 years (2017 – 2022) : RV will become a platform organisation that has the capacity to
- Connect ratepayers among themselves, and network with other local government (LG) stakeholders
- Aggregate information resources and capabilities to better address local and statewide challenges and opportunities in LG
- Mobilize ratepayers to engage in strategic partnerships and leveraging technology to improve problem solving and accessing governance tools.
We have commenced and planning projects to achieve these objectives – see here to view current project list.
This five years strategy plan also involve a platform strategy, of which its digital form is already in early development and available online. Click here to view the current version of PlatformRV.
Christmas and the end of the year are getting close. Before the new year comes, we would like to share with you a reflective update about our past achievements over the last 4 yours and the exciting future direction Ratepayers Victoria is moving towards.
Past to Present Accomplishments:
In 2012, Ratepayers Victoria started a campaign to transform into advocacy organization. Why we carried out this strategic transformation? It is to empower our networks of ratepayer groups to become advocates for their local community, to have greater propensity and sustainable capacity to influence change in councils to better engage and response to their communities and keep rates affordable.
Far too often we heard from our networks of ratepayer groups that their councils jeered at them for being small associations, disenfranchising their individual members, including being adverse towards them. Changing these groups’ business model to become an advocacy organisations, networked and connected via a common Ratepayers Victoria’ platform, not only negates such treatment, but also increase their capacity to quickly build a stronger collective voice and be more mobilized to take enduring actions, though sometimes can be long and painful, but with endurance, persistence and resilience will ultimately lead to improving situations and relationships.
Becoming an advocacy organisation and as part of Ratepayers Victoria’s networks also allow groups to come together as a civil society collective, linked by common interests and shared knowledge and actions to improve good governance practices in councils, the root cause of many local issues, including rates affordability. A civil society is formally recognised as the third tier of society, along with government and businesses.
Our strategic advocacy development journey over the last four years has achieved the following:
- Formal involvement in making LG reforms. Ratepayers Victoria represented Victorian ratepayers in the development of the Fair Go Rates policy, which benefits all ratepayers but not effectively supported by many councils and their peak bodies, because it curtails their expenses and requires showing justification transparency and financial accountability in rates setting. Today, we continue to monitor through our networks and report rates capping resistance tactics, to ensure rates capping compliance is sustained and increase effectiveness in future years. Ratepayers Victoria also sits in the steering committee for enhancing the Local Government Performance Reporting Framework (LGPRF), which is a performance management tool for increasing and ensuring councils’ financial, service and governance performance. We are taking a hands on contribution to develop governance key performance indicators (KPIs), which currently is lacking and is no more than a tokenistic checklist.
- Developing ratepayers’ capacity to exercise local governance overseeing, which involves taking a agile approach in trialling processes and tools to check and report compliance violations and offences, aiming to inform higher authorities better understand and response to local grass root governance issues and practice gaps in councils. The milestones we accomplished is having regular meeting access to higher authorities and greater and formalizing recognition as a value adding contributor to reforms development.
- Finding new ways to sustain ratepayers groups, create new ones with guided help, and regionalise ratepayer groups for strategic positioning. Eastern Ratepayers was formed, consolidating groups from Knox, Monash, Casey and Cardinia, who meet regularly and engage in collaborative local and regional problem solving, etc. We helped create two new ratepayer groups in Darebin and Mildura.
- Building and leveraging strategic partnerships with other groups and businesses, to create and innovate value adds that mutually benefit each other. The first prototype was partnering with Oursay to trial a governance evaluation survey, to better understand and confirm the common governance issues experienced by ratepayers.
- Prototyping processes and tools to increase ratepayer groups’ role in supporting the right candidates in council election. In the 2016 election period, we trialled the process of giving Ratepayers Victoria branded endorsement to local groups’ recommended candidates and prototyped an online information tool for helping voters make informed decisions in selecting running candidates.
We achieved these strategic milestones while continuing day to day support to our networks. These strategic and operational achievements are the effort of a small team of volunteering but high performing advocate leaders, able to create and expand their spheres of influences through sharing their knowledge, talents and networks.
The Next Strategic Positioning:
Over the festive break, we are developing a strategy plan for the next 5 years, ensuring Ratepayers Victoria is strategically positioned to strengthen and sustain ratepayers voice and influence, and increase achievements of high impact strategic outcomes that deliver both local and state-wide benefits. The scope of strategic positioning is to modernise ratepayers’ participation in council affairs and have sustainable relationships with higher authorities to increase and sustain council integrity, transparency and responsiveness to local communities and the state. Ratepayers will expand its advocacy business model to become platform oriented one, so that ratepayers can easily connect, access and share knowledge, talents and resources to increase their sphere of influence and making value adding contributions in councils. In the new year, we will share more insights about this strategy plan.
Folks, do have a wonderful and joyful Christmas, and a very happy and safe new year.
Effective from 31 October 2016, Ratepayers Victoria’s new President is Dr Chan Cheah. RV Founder and long time President, Jack Davies, decided to be Vice-President. Chan and Jack will continue to work closely together, continuing to contribute their different areas of expertise, to bring Ratepayers Victoria to the next level.
The new nominated committee members are:
- Beaty Davis
- Frank Sullivan
- Joe Lenzo
- John Presley
- Kim Nguyen
- Lynnette Saloumi *
- Marlene Bottrell
- Phil Douglass.
Over the last 6 months, we accomplished some strategic quick wins:
- The start-up of 2 ratepayers groups in Mildura and Darebin (Melbourne Metro)
- The development of Eastern Ratepayers Inc, to better connect ratepayer groups in the eastern region, to share knowledge and resources and engage in ground breaking collaboration projects, to improve the LG system
- Ratepayers Vic representation in the Local Government Performance Reporting Framework (LGPRF) steering committee, who is responsible for enhancing key performance indicators of councils.
- Increasing the formal acknowledgement of Ratepayers Vic as a key stakeholder among upper authorities, including the Local Government Ministry office, in reforms development.
- Started up Ratepayers Vic’s facebook – https://www.facebook.com/ratepayersvictoria/ to facilitate stronger ratepayers communication and knowledge sharing.
- Collaborating with Knox and Monash ratepayers groups, we successfully prototyped two services that RV can provide to its members in the next election cycle – the collaboration process between RV and local ratepayer groups to endorse locally suitable candidates, and the provision of a candidates survey to help voters make an informed decision about their local candidates.
These value adding accomplishments are in addition to our other operational advocacy activities, such as laboriously writing submission papers to respond to LG programs, etc.
In the next two months, working with several committee members, we will set the new objectives and 4 years strategic directions for Ratepayers Vic, to be a stronger advocacy and more influential platform enabler for all ratepayers in Victoria.
Platform RV is our new strategic initiative. Watch this space develop and we will publish this exciting and ground breaking RV strategy plan in due course.
* Lynnette Saloumi resigned in December, 2016, to avoid conflict of interest risks in her new Councillor duties.
Essential Service Commission (ESC) is the state government agency for overseeing compliance to the Fair Go Rates System (FGRS) aka rates capping policy. It called for an independent review of its implementation of the FGRS, which was conducted by Peter Brown. The review was completed in October 2016, with the publication of a review report.
ESC has responded to this review report, see http://www.esc.vic.gov.au/document/local-government/36176-escs-response-peter-brown-report/. The conclusion is:
“The community consultation required for applications should not be a standalone process to satisfy a higher rate cap application but rather part of councils’ ongoing planning and consultation processes outlined in the current Local Government Act and further expanded within the proposed new Act”.
(Click here for the full report):
Ratepayers Victoria has reviewed both reports and agreed with most of ESC responses. We also highlighted additional recommendations to:
- Include a representatives of the community in any pre-application submissions, especially to verify with evidence that community engagement was satisfactory
- The provision of a model chart of account should be a first and high priority for improvement.
- Councillors and officers should have to attend compulsory training on the subject of participative democracy and their community engagement performance be monitored by LGV
- There is a need to define and measure value for money, to improve compliance to the best value principles in the LG Act
- Participatory budgeting should be a future mandatory, to enable collaboration with the community in planning council budgets.
RV disagrees with several responses, notably we see no value but more risks if:
- Councils are advised of ESC’s decisions regarding the rates application before public release of the final decisions
- Councils are provided a copy of the final decision and an opportunity for a debrief and comment prior to public release
- ESC presumes that if a mayor signs off that the criterion concerning community consultation on the higher rate cap has been undertaken in accordance to the framework
- Councils are given at least 2 opportunities within the calendar year for Councils to apply for a higher cap.
Public responses to the LG Review Discussion paper closed last week.
We issues our submission paper. The key highlights of our submission are:
- We conclude that the State Government’s proposed reform drivers for change are underpinned by the need for improving good governance capacity building in councils, based on the principles of the Good Governance Guide. The discussion paper identified the areas of significant improvements aka reforms are needed:
- Community engagement
- Integrated strategy planning and reporting
- Decision making
- Exercising Ministerial powers
- Human resource & performance management
- Ensuring fair & affordable property taxation
Recent news indicate a possible scenario of councils amalgamations if Victorians support this future option – refer to:
- The Age - http://www.theage.com.au/victoria/local-government-minister-natalie-hutchins-says-government-open-to-amalgamations-20160908-grcahq.html
- The Herald Sub – http://www.heraldsun.com.au/news/victoria/victorian-council-amalgamations-local-government-minister-open-to-move-if-community-wants-it/news-story/8b1e897f7e00ed4748277d282b1ebe14
We issued a press release to respond to this possibility:
Ratepayers Victoria do not support forced councils’ amalgamations . We support that every council should engage and collaborate with its community to review the pros and cons of amalgamation in its own municipal and if there are better best value benefits arising, by all means progress further.
We prefer to take a more 21st century perspective of restructuring the Local Government sector. Councils have always been operating as decentralised units of the State’s LG portfolio. This decentralised business model is the cause of many councils’ inefficiencies and barriers to optimized service provisioning and good governance leadership.
It is time the sector should examine options of reducing council’s decentralised operations and identify more shared in house and community services to improve efficiency, good governance and best value outcomes for their communities. A lot of councils’ back office functions, including administration operations can be shared and this will release millions to billions of money that can be better used to provide more relevant and high value services and amenities to communities and reduce councils’ expenditure that can result in lower rates and consequently lesser CIV effects on individual ratepayers, ultimately increasing and sustaining rates affordability.
The centralisation of councils’ operational and management processes is certainly a viable and high impact option for LG reform, without compromising local democracy. The process of local democracy also needs to be reviewed, as the question is whether councillors have the right leadership and organisational competencies to lead multi million to multi-billion councils’ operations?
Many of our members are reporting their councils’ abuse in establishing Councillor Codes of Conduct. Joe Lenzo, leading RV’s special investigation task force into this matter, is confirming that many councils are using the code of conduct policies to stifle both debate and transparency. The most publicized case is from Monash Council (case 1, case 2).
Joe Lenzo’s reports:
“What it happening is that the block of councillors in power are setting up the code to stop councillors in disagreement from debating issues or bringing issues to the public. Some of the wording in the codes is so vague and ambiguous that anything a councillor does could be a violation and, here again, give cause to shut down opposing points of view. A couple of good examples:
- “The shire’s draft charter prohibits distribution of material marked “confidential or which by its content could be reasonably considered to be of a confidential nature”. I mean really, who is to decide this?
- “An overriding concern ought to be in achieving a balance in the matters that are communicated and strive to achieve an outcome that presents Council as effective, cohesive and competent”. Even if not true.
- The word “accurately” in the Model Code becomes “adequately” in the shire code. “Adequately” rather than “Accurately”!
Why do we need 79 councillor codes of conducts when one will suffice?
Local Government Victoria should write the councillor code of conduct which will insure consistency across councils. It will insure consistency of councillor conduct and stop the bullying tactics of the block in power at the time the code is written. It would take the politics out of the code.
If councils want to expand on the code to go into more detail about what it means and how it is applied then that would be OK. But they must be reined in from their current practices.
This concept should be followed in writing officer code of conduct also.
One must wonder if the violations of the code of conduct are actually bad conduct or just rebellion against stupid codes (like putting your hands on top of your head before you can make a motion).
This is just another example of councils abusing their powers to thwart transparency by expanding the rules of confidentially.”
A Parliamentary Committee was setup in 2015 to monitor, every six months, the outcomes of the State Government policy of local government rate capping on councils’ viability, service impacts on local communities and impacts on the provision of local infrastructure. Justification for this inquiry is mainly based on the concerns of (Parliament of Victoria, 2015)
- Risks to the critical services and infrastructure provided by councils around the state as rate capping is implemented;
- Risks that council debt along with other charges, fees and levies, will be increased to compensate for rates being capped at the rate of inflation.
- Risks that wage increases for council employees at levels far beyond the CPI will see pressure to cut services and infrastructure maintenance to close the gap between revenue and expenditure.
These risks arise primarily because it is perceived that:
- Councils’ operating costs cannot be in lock step with the CPI because councils and their peak bodies view their expenditures comprise a very different ‘basket’ of goods and services;
- State Government do not adequately fund councils to localise state services & infrastructures and expect councils to recoup the cost of delivering these amenities to local communities.
To date, there are 2 inquiry reports published so far.
The third review is underway, and Ratepayers’ submission is as follows:
Most ratepayers view the Fair Go rate policy is working successfully. However there are the few those, such as councils and their peak bodies, who perceive the policy is not working, because they lack the resolve to want and make the state policy work.
Local Government Systematic Gaps: Causes & Effects
For decades, local government has been operating in its own vacuum, as the decentralised units of the Victorian State Government’s Local Government (LG) portfolio. The LG portfolio works under the discretionary operations of 79 councils, each with different appetites for budget and operating models for localising state services and managing local liveability.
A major overhaul of the LG Act took place in 1989, implying the Act is more than twenty years old. Since then, over 100 band aid amendments were added. We also observed many discretionary variations when councils interpret and practise compliance to the legislated rules, including handling non compliance.
Unsurprisingly, many councils and their peak bodies are still in the mind-sets of the eighties, their legacy to current practice norms cultivating:
- Self-directed operating autonomy that duplicates and increases inefficacy in the LG system
- Growing appetites for escalating rate rises , without adopting more modern practices of budget planning and management
- Leadership cultures often lacks practice competency of good governance principles in council conduct, decision making and implementation.
These practice discretions explain why the current and legacy business models and work cultures of many councils are out of date and out of touch with today’s generations of ratepayers.
Today’s generation of ratepayers and their advocacy groups:
- are more well informed and professionally astute;
- have higher expectations of democratic civil participation and rights
- want to see more transparent good governance compliance evidence in council affairs;
- expect to see more socially responsible and best value for money community-outcomes resulting from council decisions and service provisioning.
When councils and ratepayers disconnect, the “best” outcomes for local communities is easily dictated by those who hold decision making power and the capacity to ensure legislated objectives can be easily construed by discretionary and subjective decision arguments, politicised agendas and autocratic leadership styles.
Inquiry Reports: Analysis Shortfall & Gaps
The first and second inquiry reports focused to summarise the face value findings of submissions from stakeholders who primarily resist the rates capping policy, because it threatens the autonomy of status quo and/or because of politicised reasons. Conclusions are made on the basis of submissions’ summary highlights. The reports lacked deep analysis of the findings to investigate the motivation and causal drivers underpinning the strong consensus resistance against the rate capping policy. Neither do the reports address the prevailing systematic issues that require short to long term reform interventions, such the rate capping policy to contain current and sustain future rates affordability & equity for local communities. This example has trade-offs that councils and their peak bodies dislike, because the tradeoffs disrupt status quo domination of power in LG.
Legacy Systematic Municipal Financial and Service Management Gaps
If there is optimisation of economies of scale and scope, there is no need for rate capping. A system that is guided by a rule-book (the LG act) that is more than twenty years old and especially when its compliance policing is discretionary, loose and subjective, resulting systematic inefficacy is a natural given, further worsen when there are 79 decentralised and autonomous councils doing what and how they like. Therefore, it is not difficult to see why systematic cost-shifting blames occurs, when operational duplications and decentralised autonomy are the real structural barriers to economies of scale and scope and they increase system management complexity.
Claimed uncertainties in budget planning is not due to rate capping, but competency gaps in zero based and scenario budget planning, risks management and total lifecycle cost of ownership in assets management, financial management alignment to councils’ strategy cycles and the lacking clear definition and hence integration of service management structures in councils’ charts of accounts.
When councils complain they have hundreds of services, their complaints reveal there is no understanding of service management and lacking capabilities, which affect the integration of service and financial management structures in charts of accounts that are crucial for effective management reporting.
Reforming systematic change is inevitable to improve the situation. The previous Liberal State Government started the journey of reforms, by introducing the development of LG Performance Reporting KPI framework (LGPRF) and making short term legislation changes to fix growing conduct issues. The present Labour Government is intensifying this change journey and the resistance to change is very real and strong, coming from councils and their peak bodies. Both previous and current State Governments have their heads and hearts in the right place, to reform the LG system in the interest of current and future communities.
Peak Bodies Self Interests
Councils’ peak bodies rely on councils to bring in their revenues through membership fees that are calculated based on the financial capacities of councils. MAV also earns big money from councils outsourcing their procurements. The worldview is escalating rates are good, because they pay every provider stakeholders very well and always increase.
The LG Index was designed to justify ongoing uncapped rate increases, only supported by evidence of uncontested common practices, and ignoring good practice design and program logic evaluation principles.
This year, MAV also initiated an advocacy rates capping program for its members to contest the policy.
Self interests and preservation are the key providers’ motivators for resisting change, especially rate capping that hurt their real hip pockets badly.
Rates Affordability: A Needed Social Responsibility
If rates are not capped and councils are not made more accountable for increasing operating efficacy, ongoing and escalating rate rises will make owning properties unaffordable for most and exclusive to the rich, often overseas investors.
A fairer rate system that ensures rate affordability is not unreasonable but a social responsibility necessity.
Councils and their peak bodies are failing to meet their statutory obligations to ignore this growing ratepayers’ dilemma by insisting rate capping is detrimental to their operations and autonomy in local municipal service provisioning. We witnessed in a MAV meeting this year, one socially responsible Council, ie the Colac Otway Shire , asked other council attendees have they checked with their local communities if they want rate capping and many chose to ignore the question asked and supported the MAV lead rate capping program.
Most ratepayers, especially if they don’t work in the LG sector, will want rate capping to continue, even more having higher future rate caps until they can see KPI evidence that their councils have optimised their operating and service provisioning efficacy. Today service management and accounting is a dog’s breakfast and while LGV is working on improving KPI reporting and performance transparency, councils continue to winch about good governance and compliance obligations as bureaucratic waste of time tasks.
Creative Cost Shifting Games
The first year of rate capping only applies to the general rate and municipal charges components of council budgets. Other expenditure areas of councils are not affected. We have received cost shifting reports from our members that some councils are reducing general rate and municipal charges to other expenditure areas, to be less constrained by rate capping. We also observed the sector wide trend in increasing fees and other charges, and differentiate rates, to compensate the financial impacts of rate capping.
Councils are now cost-shifting to their communities and yet they complain about costing shifting from the State Government. Cost shifting may be a contributor of insufficient funding of councils’ expenditures, but operational inefficacies and lacking systematic economies of scale and scope are the larger and higher impact causes.
Such practices are not kosher, especially when statutory financial indicators reveal many and often metro councils have large reserves of unrestricted case, over geared working capitals and long standing underperforming asset renewal ratios ( that have been prevailing for many years when rates were not capped). The patterns of news media reveal that there is implicit collaboration to use the media to discredit rates capping. The common media manipulation is publicly complaining that rate capping is hurting communities because councils have to cut services (selectively), such as school crossings. The tactic is when one lies enough and the lies become reality, often used by social engineering rogues.
Infancy Good Governance Competency
The rate capping policy provides councils the choice of increasing rates above capped levels through a rate variation process. The process requires them to consider a strong business case, show good explicit decision making traceability and demonstrate genuine community engagement. This process integrates good governance principles - especially concerning transparency, accountability, community responsiveness and inclusiveness, efficiency and effectiveness. Accusing the rate variation process is bureaucratic and consumes unplanned and large resources and money, only reflects the real good governance competency of winching parties, also their capability-level to write business cases, or some other sinister reasons.
One would squirmed even to think the future fury reactions of councils and their peak bodies when future rate caps can be further increased and efficiency factors integrated in the rate capping formula. Does LG serves in the interests of councils and the peak bodies first before local communities – the new black in LG?
What this inquiry’s submissions and reports have not revealed are the legacy leadership cultures and systematic issues in councils and their peak bodies that are blocking the rates capping policy and compromising its implementation success. Concluding the inquiry findings, based on summarising the common themes of submissions (which are mainly from stakeholders who oppose rate capping) at face value, lacks substantiation of deeper analysis to identify the real causal barriers to rate capping and consequently system efficacy improvements.
If councils are tactically persistent to discredit and remove rates capping, they may as well include the LGPRF improvement program and cancel the modernisation of the LG Act. They can also consider restructuring the State Government, to remove the LG portfolio. These cancellations and state government restructuring would allow councils and peak bodies to:
- continue their legacy status quo and without a good governance conscience when monopolising and dictating municipal service provisioning and pricing;
- jeopardise very quickly rates affordability and equity for many Victorians.
Then the rule of law principle of good governance, which relates to complying to the LG Act, can be bent, not breached, to fulfil the wishes of the exclusive few before interest of local communities first?
Cutting to the chase, the policy is working now. If councils and their peak bodies redirect their energies and resources to ensure the success of the policy, there will be greater systematic improvements and many longer term benefits arising from rate capping.