In each edition, we feature the views of a Local Government Association President. The following is from Margaret Vigants, President Local Government Association of the Northern Territory.
We are all aware that Senator Harradine holds the balance of power in the Senate until 30 June and the Federal Government is aiming to have the taxation reform legislation passed by both Houses of Parliament before that date.
We are currently benefiting in the Northern Territory from the Senator’s negotiations when the legislation was passed to sell 33% of Telstra. At that time he voted for the sale on the understanding that funds would be set aside to improve telecommunications in rural and remote areas of Australia.
The Northern Territory Government and the Local Government Association have now had major projects approved for funding from the fund established. The projects when completed will significantly improve the ability of people in small communities across the NT to communicate as effectively via email and the internet as people in larger cities now take for granted.
There are many similar telecommunication based projects now under way around rural and remote Australia that would not have started if Senator Harradine had not at the critical time sought to get the best for regional Australia from the strong position he has with the balance of voting power in the Senate.
If we look ahead a couple of months, my opinion is he will be in a similarly critical position with respect to the passing of the taxation legislation that may usher in the GST and fundamental changes to the way Local Government receives its small proportion of the revenue collected by the Federal Government.
If he is in this position, and the changes being proposed by the ALGA and State/Territory Associations to the taxation reform legislation have not been properly addressed by the April Premiers Conference, or the passage of the bills through the House of Representatives or Senate changes, I hope that he again acts in support of communities across Australia. He will be in a position to negotiate changes in support of the position being sought by Local Government and let us all hope that he uses his ‘power of one’ to do so again.
In addition to the changes being sought by ALGA, the particular proposition that Queensland, Western Australia, South Australia, Tasmania and the Northern Territory would advocate Senator Harradine’s strong support for is the achievement of fiscal equalisation for the interstate distribution of Local Government financial assistance grants. This one change would substantially improve the funding available to Councils that cover 75% of Australia’s land area.
In the Northern Territory it would provide a significant funding boost to Councils on Aboriginal land which would allow these communities to do far more work on overcoming the community infrastructure backlog that they now face.
There is a compelling case for fiscal equalisation to be applied to Local Government funding which is outlined in the submission prepared by the five LGAs representing the above States and Territory. In essence it is a case based on consistency of Federal policy, as 95% of money is now distributed by the Federal Government on the basis of fiscal equalisation principles. Local Government is simply seeking, in the interests of consistency, that the final 5% provided to Local Government is distributed on the same basis.
If you are reading this in Victoria or New South Wales and thinking this is all very well but the only catch is we will suffer because of it, I urge you to have a further look at the case put by the five LGAs. The submission shows that fiscal equalisation can be achieved without detriment to Victoria or New South Wales or Local Government in those two States.
The Premiers, at their April meeting, have the power to act in relation to the propositions being put by Local Government. So do Senators from the four States and Territory referred to in this article, if they were to vote to support what is best for their constituency. If they and other Federal politicians fail to act on behalf of communities in rural and remote areas of Australia, I say all power to Senator Harradine as he negotiates in the final stages of the deliberations on taxation reform. He did it with telecommunications. He could do it again with funding for Local Government.
