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An Australian Mayor is warning of the unforeseen consequences of a rates cap.

Minister of Local Government Simon Watts says he will advance rate cap policy discussions before the end of the year.

Sue Heins, mayor of the Northern Beaches Council in New South Wales, told a Local Government New Zealand conference it leads to councils making impossible choices.

She told Heather du Plessis-Allan it leads to things like delayed infrastructure repairs and sports grounds with outdated facilities.

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