Local Government associations across Australia have welcomed additional funding measures in the 2015 Federal Budget, but have warned the ongoing indexation of the Financial Assistance Grants continues to put pressure on local budgets.
Local Government Association of the Northern Territory (LGANT) President Damien Ryan said the Federal Budget is good news for the local government sector.
“The Northern Australia Infrastructure Facility will provide cheap loans for new roads, airports, rail projects and more across the NT, Western Australia and Queensland.
“It will definitely encourage more infrastructure projects, and should encourage more public-private partnerships, which will be of much benefit to the remote areas in the NT.”
President Ryan said the budget also included the continuation of funding for regional and remote aerodromes under the Regional Aviation Access Program with an extra $40 million to upgrade airstrips and boost air services for remote communities.
“This is really great news for the NT, there are still issues to sort out about who is responsible for the maintenance of our remote airstrips but this will help greatly.”
The Commonwealth Government is also meeting its commitment to double the funding for the Roads to Recovery (R2R) Program in 2015-2016.
Local Government Association of South Australia (LGASA) President Mayor Dave Burgess said councils and communities genuinely appreciated the road funding.
“The new funding for roads is especially appreciated at a time when there is enormous pressure on the Federal Budget.
“A doubling of the Roads to Recovery program will see an extra $28.4 million for SA local roads next year and access to around $4.2m for black spot funding.
“I would also acknowledge that the National Stronger Regions Fund will kick in next financial year providing $1 billion over five years nationally in assistance for infrastructure projects.”
At the same time Mayor Burgess expressed concerns that Supplementary Road Funding of $19 million for SA has not been reinstated, with the core local road funding allocation seeing SA receive only 5.5 percent of funds while SA has 11 percent of local roads.
“Assuming there is no remedy it will mean that for a second year SA local roads are being funded at a lower comparative rate than in other States and Territories.”
Municipal Association of Victoria (MAV) President, Councillor Bill McArthur also welcomed the funding for the Roads to Recovery and Black Spot programs.
“Victoria will receive $142.4 million through the R2R program next year which will help local councils with municipal road maintenance and renewal.
“The $36.5 million for Black Spot funding is up from $16.8 million last year, and is vital for improving community safety as it helps councils upgrade roads of high accident risk.
“The budget also contains a further $145 million for identified local roads grants and it’s hoped an adequate proportion of the $60 million announced for the national Bridges Renewal Program will go towards local government projects in Victoria.”
Councillor McArthur also said some aspects of the government’s $3.5 billion childcare package were also welcome, specifically a proposal for a streamlined, single childcare payment paid directly to childcare centres to reduce parents’ upfront costs.
“However, we are concerned that this single childcare payment is based on a benchmark price of care, which does not reflect the supply and demand for childcare, and could potentially lead to services charging higher than the benchmark.
“We are also concerned that the proposed subsidy system ties access to childcare to a family’s workforce participation, which may mean some of our most vulnerable children will have access to a limited amount of childcare.
“In addition we are concerned that when this package comes into operation in 2017, it is likely that the cost of childcare will have risen, thus potentially making the benchmark prices inadequate.”
Local Government Association of Queensland (LGAQ) chief executive Greg Hallam said it was encouraging that the regions were a big focus of the spending measures contained in the Budget.
“The commitment to unleashing the potential of northern Australia is welcome, particularly the promise to help fund new ports, power and water infrastructure.
“But it is disappointing that the Government has failed to heed local government’s calls to reverse last year’s decision to freeze indexation of Financial Assistance Grants.”
LGANT, LGASA and the MAV also expressed concern at the indexation of the Financial Assistance Grants.
The Australian Local Government Association (ALGA) stated that the Budget indicates that the Government will restore the indexation of the grants in 2017-18 but the freeze in indexation has already reduced grants to councils by an estimated $96 million in 2014-15 and an additional $200 million will be foregone in the coming year.
“These grants are absolutely essential to local communities as they allow councils to provide a reasonable level of service and infrastructure to local residents,” said ALGA president Mayor Troy Pickard.
“The permanent loss of a substantial proportion of the grants as a result of the continued freeze on indexation will be felt in all communities.”
