Federal Labor has committed to a Local Government Federation Compact, vowing to look at increased ongoing regular funding for the sector to be used on roads, infrastructure and community services.
Berrigan Shire Mayor Julia Cornell McKean said it could save councils from the succumbing to the escalating financial crisis.
She said without such intervention, Berrigan Shire might be about “about five years” away from having to consider rate increases above CPI and state imposed caps.
Murrumbidgee Council Mayor Ruth McRae also welcomed the agreement, saying having access to untied regular funding is far more beneficial to councils than the occasional “small bites of the apple” targeted grants allow.
The Compact, announced at the ALP National Conference on Saturday, commits to annually increase the level of Financial Assistance Grants to councils across Australia.
It will also broaden the scope of Roads to Recovery funding to be used to purchase plant and equipment to enable councils to carry out their own road maintenance with their own trained workers.
Other inclusions in the five year Compact include:
- Support and increase the availability of apprenticeships in local government, as well as other employment programs in a local government context;
- Deliver new capabilities to improve outcomes in housing, planning, emergency management and aged care; and
- Ensure the government publishes an annual summary of funding for Local Government.
Financial Assistance Grants currently sit at 0.49 per cent of taxation revenue, but councils have been campaigning to have it increased after it dropped from one per cent many years ago.
Until now, those calls have fallen on deaf ears.
While there’s no discussion yet on what the increase offer will be next year and beyond, the local mayors said the promise to address the shortfall is an important first step.
“It’s not going to get to one per cent overnight, but it’s a great first step,” Cr Cornwell McKean said.
“Let’s see what the words say, but it looks like we’re finally having a genuine conversation.
“We’re lucky in Berrigan Shire that we’re not had to apply for a special rate variation in 20 years like some others around us, but we’ve come very close. Without intervention, we may need it in about five years.”
Cr McRae said while Financial Assistance Grants have dropped, “every cost has escalated” and was thankful that “finally there is some serious attention given”.
“It’s been good to see Local Government NSW recognise the difficulties for rural and regional councils in particular, and that roads are one of our hungriest assets.
“The best thing about Financial Assistance Grants are untied, so councils can best decide how it is invested; for council operational staff to lead the conversation.
“Without immersing ourselves in a debate about cost shifting because it’s happening all the time, the reality is that its not just cost shifting council has to deal with.
“More often local government is being asked to step up in areas they would not have otherwise operated, like in health, aged care and education - major essential services.
“The Compact addresses that and will also make sure the roads to recovery fund has a broader remit, and will also support and increase funding for apprenticeships in local government.
“Grow our own is how we roll because it can be difficult to attract.
“LGNSW and the Country Mayors Association view this as a refreshing approach to local government.
“We can deliver, we just need this kind of support to prove it.”
Local government associations will now work with the Federal Government and unions representing the local government workforce to develop and implement the Compact.
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