In each edition we feature the views of a Local Government Association President. The following is from Councillor Mike Montgomery, President of the Shires Association of NSW.
With the recent announcement by Deputy Prime Minister, John Anderson, regarding regional and rural development, we have a clear picture of what the Federal Government has in mind should they win the next election.
We have sought Government funding for a taskforce to evaluate Enterprise Zones, a concept promoted by the Local Government and Shires Associations of NSW, together with the Institute of Chartered Accountants in Australia. The Deputy Prime Minister has just recently committed to a comprehensive assessment of this proposal.
Enterprise Zones have been used successfully for more than 20 years in the USA and Europe to create jobs and prosperity in depressed regional areas. It is an area where one or more local Councils are performing below a predetermined set of social and economic benchmarks.
The zone would nominate itself to the Federal Government and, once approved, can offer attractive benefits to businesses which can create new net employment for the area. These include company tax credits, investment allowances, accelerated depreciation and wage subsidies.
It is a means of attracting economic development to areas which would otherwise remain static or further decline, and should not have a negative impact on neighbouring areas, rather, there could be positive spin offs for surrounding towns.
We look forward to being a part of the proposed committee which will develop an action plan for business improvements across regional Australia.
It is a good time for us to take stock of the real issues impacting on regional economic development, local Councils and communities in rural Australia. Many decisions are made by Federal and State Governments without properly considering the effects on our communities. The decision makers do not look at the cost to local Councils of implementing basic services and meeting community expectations.
The situation with our roads is a prime example. NSW has a road network of 181,800 kilometres of which Councils are responsible for 161,420 kilometres, close on 90 per cent. But there simply isn’t enough money in the system from Commonwealth and State Governments to adequately maintain and develop this vital infrastructure, even with the Roads to Recovery program announced late last year.
We cannot achieve proper regional economic development and sustainability without the adequate infrastructure. Working together with the other states is a powerful way of getting results in this area. NSW Councils are fully supporting the national Australian Local Government Association (ALGA) roads campaign. With the deterioration of our local road network, black spots on country roads have become a major concern and assurances are being sought for the continuation of the program beyond 2001/2002. We are urging a major injection of funds into this important area.
We are also seeking a commitment from both major political parties to continue the Roads to Recovery program and for action to be taken over the recent High Court of Australia decision to abolish the nonfeasance immunity. Previously under the immunity Councils were not liable for accidents which resulted from the natural deterioration of a road.
Australia is a litigious society and the number of public liability claims is increasing. The cost of these potentially huge claims ultimately falls back on the ratepayers and further reduces Councils’ ability to provide essential services to the community.
While the abolition of the nonfeasance immunity is a problem, Councils’ constituents must be aware that eventually they will bear the escalating costs to Councils of those claims. We are calling on Government to act in a timely way and introduce legislation to protect Councils, their communities and other road authorities. If Government doesn’t act quickly, all of us, including our communities, will lose out financially.
The Shires Association of NSW remains committed to representing and promoting the interests of regional and rural communities and will seek to ensure their needs are met.
