“The New Year provides an opportunity for reflection as well as looking ahead,” said Councillor Paul Bell, President of the Australian Local Government Association. “2006 was a year of many successes for Local Government when important steps were taken towards our long cherished goals of Fair Funding, Fair Treatment and Formal Recognition.
“One of the major highlights of the year for me was the signing of the intergovernmental agreement on cost shifting in April. This was an important achievement for Local Government. Previously, cost shifting cost Local Government between $500 million and $1.1 billion a year. One of my proudest moments was the passing by both Houses of Parliament the resolution recognising Local Government in September and October. This was a cause for celebration and an important step towards our long term goal of Constitutional recognition for Local Government.
“Another highlight was the commissioning and launch of the PricewaterhouseCoopers report into Local Government financing in December at Parliament House. The report will underpin our case for fair funding which we will continue to fight in 2007. 2007 will be the year in which we Push the Agenda forward – and continue to build on the momentum we have created with our ‘3Fs’ campaign.”
Councillor Bell said that the State of the Regions report and the PricewaterhouseCoopers report show the challenges facing Local Government and they are being acutely felt, particularly in regional areas. “Access to broadband, skilled labour, affordable housing, the benefits of a booming economy – so often it is the remote and regional parts of Australia that are missing out,” he said. “As President of the Australian Local Government Association I am committed to working to address these issues and they will be a high priority in 2007.”
On the issue of fair funding, he said that Local Government is missing out on its share of taxation revenue. The States have a growth tax in the GST but Local Government Financial Assistance Grants are linked to the CPI and population growth which does not take into account increasing costs and greater community expectations.
“We will continue to argue for a direct share of total Commonwealth taxation revenue of at least one per cent,” Paul Bell said. “The PricewaterhouseCoopers report has recommended a $250 million infrastructure fund to upgrade our community facilities such as swimming pools, ovals, walking tracks and community centres. We are lobbying the Federal Government on this issue and with the assistance of the State Associations, we will also lobby State Governments to provide funding support to encourage local Council efficiency and asset management reforms.
“For our part, Local Government has worked hard to lift its game but we must continue to look for opportunities to share services, expand our revenue sources, and improve our capacity in asset reporting and data collection to assist with financial planning and asset management. In what will be a Federal election year, we will make sure that both the Government and the Opposition include Local Government priorities in their campaign platforms.”
He said the recent National General Assembly provided an opportunity to send a clear message – that Local Government is facing severe financial pressure and we need to work together to alleviate the situation facing local communities and regional economies across the nation.
