In each edition we feature the views of a Local Government Association President. The following is from Councillor Brad Matherson, President of the Municipal Association of Victoria.
Local Government in Victoria is undoubtedly experiencing its most difficult financial times in decades. A $114 million shortfall in superannuation liabilities, minimum 17 per cent increase in fire services contributions and a 30 per cent increase in public liability insurance is placing undue pressure on budgets through no fault of Councils.
It is a problem that I suspect Victoria is not alone in trying to tackle.
Inequitable distribution of tax revenue to Local Government, continued cost shifting by State and Federal Governments, income raising limitations placed on Local Government by State Governments and increasing demand for services are placing unprecedented pressure on the sector Australia wide.
In handing down its 2003/04 Budget, the Victorian Government announced initiatives to index State set statutory fees by the CPI. Although it is still unclear how these initiatives will impact on Local Government, the MAV welcomes the move as a step in the right direction toward maintaining some parity between funding available to provide services and the cost of delivery.
This month at the Annual General Meeting of the MAV State Council, Councils voted to establish a major campaign backed by a communication strategy to deal with the issue of financial sustainability for Local Government.
A newspaper report on the motion put before the MAV State Council sparked a new round of Council bashing by commercial radio ‘shock jocks’ and other tabloid media. One commentator’s assertion proved that misperceptions of Local Government in the popular media are rife:
“It is argued that when fees are linked to the inflation rate there is no ‘real’ increase. But how many can say their wages go up with inflation?”
In truth, the financial sustainability of Local Government will only be guaranteed when total parity is achieved. This requires the very issue of wages growth, which is approximately 1 per cent more than CPI, to be factored into funding available for service provision.
The MAV and its counterparts interstate continue to conduct a range of ongoing ‘sustainable communities’ campaigns. These focus on the impost on Local Government to implement many policies, legislation and regulations set by other levels of government without adequate consultation on the policy formulation or the impacts it will have on Local Government, and the need for funding/resource packages to undertake implementation.
The primary target audience for campaigns to date has been the Federal and State Governments. Media has been selectively used as part of these campaigns to apply pressure to governments to achieve specific gains.
Victorian Councils have now mandated their peak body to make media the target of a major campaign to educate communities on the real costs of providing services that are expected of Local Government. It is a worthy cause. After all, for every dollar collected in tax in Australia, Local Government receives only four cents to deliver an extraordinary range of services.
Advancing the credibility of Local Government will require all the peak bodies for Local Government and every Council around Australia to take up the mantle.
