Why has there been an increase in leaseholder charges for Perisher Range resorts?
The NSW Government requested the Independent Pricing and Regulatory Tribunal (IPART), which sets the price of gas, water and electricity in New South Wales, to conduct a review of the cost to the state of providing and managing municipal services and facilities within the Perisher Range resorts.
After a lengthy investigation, IPART has reported to the Government that the cost of running Perisher Range resorts will be about $160 million over the next 30 years. Furthermore, it recommended that this cost should be borne by those people who use the ski fields rather than continue to be subsidised by NSW taxpayers.
This would provide for operating and maintaining existing infrastructure within the Perisher Range resorts as well as new essential capital works for managing water supplies, sewerage, solid waste, roads and amenities.
In its determination, IPART found future funding for the Perisher Range resorts should be raised in 3 ways:
- increasing the rates and charges for lessees within the Perisher Range resorts
- a developer contribution to infrastructure for all new developments
- applying a per-vehicle surcharge for entry to the NSW ski fields.
In 2005, the NSW Independent Pricing and Regulatory Tribunal (IPART) set municipal services charges, including annual increases for Consumer Price Index (CPI) and an additional 2.5%. While IPART reviews were forecast to occur on a 5-year cycle, this has not occurred. The rates set by IPART are not sufficient to cover operating and capital expenses for Perisher. In the absence of an IPART review, Government continues to apply the additional 2.5%.
Since 1 July 2006 leaseholder charges apply uniformly to Perisher, Smiggin Holes, Blue Cow and Guthega and increase each year by CPI plus 2.5%.