Local Government Minister Shelley Hancock made the statement during a visit to Goulburn on Friday. She attended a workshop aimed at encouraging more women to stand for local government but also met council representatives from Goulburn and region afterwards.

Goulburn Mulwaree Council general manager Warwick Bennett has vehemently argued the annual cap should be scrapped. He has said councils were eminently qualified to set their own rates, taking infrastructure needs and affordability into account.

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This year the Independent Pricing and Regulatory Authority set the peg at two per cent for 2021/22, which councils have branded inadequate. Goulburn Mulwaree Council's corporate services director Brendan Hollands previously told The Post that 70pc of this would be eaten up by an increase in the Emergency Services Levy (ESL). That levy will see the council paying $732,984 in 2021/22, a rise of 62.6pc since 2018/19.

Mr Bennett said earlier in the week he would raise both matters with the Minister during her visit. Upper Lachlan Shire Council and others were also concerned about the hike.

But Ms Hancock said the government was "absolutely staunch" that it would maintain the rate peg.

"It's a vexed question but we will continue to have it because we don't want to give councils unfettered ability to raise rates by inordinate amounts," she said.

"It's a lesson to councils that they have to live within their means and in setting the peg, IPART recognised the increase in the ESL."

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The levy supports the work of emergency services and provides insurance cover in the event of injury or illness incurred in the line of duty. Ms Hancock described it as very good legislation that removed the reverse onus of proof from firefighters if, for example, they were diagnosed with cancer as a result of their duties. The state pays 11.7pc, councils - 11.7pc and insurance companies also foot a large proportion.

The government picked up councils' increase over the past two years but has refused to do so again.

"I realise there is an impact on councils and we are examining how we can find ways to make it easier for them if there are to be other spikes. We don't predict there will be many more spikes," the Minister said.

Also during her visit, Ms Hancock and Goulburn MP Wendy Tuckerman addressed a Women for Election Australia workshop, aimed at equipping females to stand for councils.

Both women started their careers in local government, the former with Shoalhaven Council (1987 - 2004). Ms Tuckerman was elected to Boorowa Council in 2004 and served as Mayor from 2007 to 2016. She was appointed administrator of the amalgamated Hilltops Council in 2016 and served up until March this year.

Ms Hancock said the state government funded the workshops around the state because NSW was performing the worst of all the states when it came to female representation on councils. They comprise just 31pc.

"If 50pc of the population are women then 50pc of the councillor and mayoral population should also be women," she said.

"I don't think we'll get to that but even if it's 40pc, that will be great."

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She believed perceptions of Parliament as an aggressive "bear pit," family responsibilities, jobs and a lack of confidence were holding females back from nomination. The Minister said it was important to break those perceptions and press the message that fighting for one's community was among the most important things women could do.

"My time in local government was very rewarding," she said.'

"You can drive through the streets of your community and see streets your council repaired and things that you fought for when no one else took an interest. You can take an issue and drive it...and really achieve a lot."

Ms Tuckerman agreed, saying her hometown of Boorowa had come ahead in "leaps and bounds" because representatives cared about their community.

"One important thing is that men and women think differently so it's good to have that (varied) input) around the table," she said.

The state last year launched a campaign, which included videos from prominent councillors like Sydney Lord Mayor Clover Moore and Cr Kerryn Phelps, to encourage interest among women to stand for councils.

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A total 44 females from Goulburn and region attended the workshop at Workspace in Clinton Street.

Council elections will be held on Saturday, September 4. Nominations for groups and individuals close on Wednesday, August 4. For more information visit https://www.elections.nsw.gov.au/

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