The State Government has no plans to force the Perth City Council to increase its rates.
Premier Carmen Lawrence said today literature was being distributed to Perth households alleging the Government planned somehow to force an increase in Perth City Council rates.
"This is simply not true," Dr Lawrence said.
"The Government has been examining the planning powers of the Perth City Council in relation to the central business district.
"The issue has no effect on council rates charged to householders in any of the suburbs under the control of the PCC."
The Premier said the real concern for all households was the hidden plans of the Liberal Party to increase taxes and charges after a 'phony audit' of the State's finances.
"The State's finances are in good shape and this is supported by the ratings agency Standard and Poor's, which undertook a thorough examination of the Government's budget two months ago," she said.