Delegates unanimously condemned the practice of shifting costs onto Local Government.
“The rampant practice of cost shifting services onto Local Government represents a real threat to the provision of high quality local services,” said ALGA President, Councillor John Ross. “Local Government is being slugged in the following three ways. Commonwealth funding is not increasing in real terms, State funding is in decline and new service obligations are being imposed on us by State Governments with no additional funding to support them.”
State Governments will receive $33 billion from the Commonwealth this financial year, up from $24 billion in 2000-01. But State assistance to Local Government has declined from 15 per cent of Local Government revenues in 1974-75 to just seven per cent in 1997-98. Commonwealth assistance has more or less remained constant.
The National General Assembly of Local Government called on the Commonwealth to introduce a comprehensive Local Government reform package to fund and support the role of Councils. It also called on the Commonwealth and States to fully fund services that are now being provided through Local Government. Federal legislation would also be sought to initiate a referendum at the next general election to entrench the role, responsibilities and sustainable funding for Local Government in the Australian Constitution.
