Stronger partnerships between the three spheres of government was the theme of the Local Government Minister’s address to the National General Assembly. Minister for Local Government, Territories and Roads, Jim Lloyd, said the newly elected Government is committed to developing an intergovernmental agreement on funding arrangements in the wake of the Hawker report on cost shifting.
He also promised to continue the annual roundtable with Local Government Associations to ‘hear first hand what you have to say’ and to identify issues.
Drawing widespread applause from the General Assembly, Minister Lloyd said he was strongly committed to Local Government’s retaining their planning powers.
“I will not support the removal or dilution of the local councils planning powers,” he said. “The Development Assessment Forum is developing a model for development assessment that will provide a guide for State and Local Governments on how to improve processes without sacrificing the quality of decision making, and without interfering inappropriately with the local decision making process.” He then turned to the issue of Federal/Local Government funding.
“Without being too one dimensional, the essence of our relationship is money,” he said. “The Financial Assistance Grants, which this year are more than $1.5 billion, are the central part of the Government’s support for Local Government. The money is provided to you, to spend on local priorities, and for many of our smaller councils, it’s one of their main sources of revenue, if not the major source of revenue.
“There is a growing partnership between the Australian Government and Local Government. Through working together there is much our two spheres of government can achieve. We can focus on delivering services to local communities without supporting unnecessary bureaucracy and we can eliminate the cost shifting which bedevils our Federal system of government.
“I know many of you share my vision to expand and strengthen the direct link between Local Government and the Australian Government. The Howard Government is committed to the basic principles of the Hawker inquiry recommendations.That report made it clear that Local Government has been increasingly burdened in recent years with a great number of responsibilities, transferred particularly from the States, without any extra funding. ALGA estimates the level of cost shifting at up to $1 billion annually.
“We cannot allow this situation to continue and that is why work is underway on developing an intergovernmental agreement (IGA) between all three spheres of government to provide for better outcomes at the local level. The Hawker Report contains a number of complex recommendations and the Government is working through them. It has not been an easy task and we have recognised the need to consult fully with Local Government.”
