President of the Australian Local Government Association (ALGA), Councillor Paul Bell, believes that the major challenge for the ALGA team and State Associations during 2005 is bringing the Intergovernmental Agreement (IGA) to finality.
“The top priority must be securing a meaningful IGA between the three spheres of government to help put an end to cost shifting – a practice that is estimated to cost Australia’s 675 councils between $500m and $1.1bn a year,” Paul Bell said. “There is already plenty of good will to tackle this problem with meetings underway to make this agreement a reality.”
Headings for the IGA were agreed to by all State Governments at an initial meeting last year. It is expected that State and Federal Ministers will sign off on a proforma in the early part of the year. This will then be developed into a document to take to the Council of Australian Governments (COAG) later in the year.
The State Local Government Associations have been working closely with their State Ministers to reach these agreements.
“It’s critical to secure an effective framework to guide the financial relationship between State and Local Government and between Federal and Local Government,” Councillor Bell said. “We must then redouble our efforts to achieve fair funding for Local Government which means access to a fair share of national taxation revenue. There is growing recognition that Local Government in under resourced to meet the needs of 21st century communities. Increasing community needs and the growth of the Australian economy is not being reflected in the amount of taxation coming back to Local Government. Funding to Local Government needs to be linked to a percentage of all taxation received by the Australian Government.”
Paul Bell said that ALGA is pleased that the Federal Minister for Local Government, Jim Lloyd, has indicated that councils should be investigating new revenue streams, such as investment bonds, to fund major infrastructure projects for water, sewage, roads and the like.
“Mike Montgomery’s term as ALGA President saw substantial partnerships formed with the Federal Government on issues such as transport, ageing, information technology and natural resource management, we will continue to build on this,” Councillor Bell said. “ALGA will grow these partnerships and look at other areas, such as water resources and sustainable urban transport, where we can work together more effectively to provide better outcomes for Australian communities.
“I look forward to working with the Australian Government over the coming two years to implement effective reform that will enhance the capacity of Local Government to deliver for their communities.”
He said with emergency services Local Government is on hand to respond quickly and efficiently. Similarly, with the challenges of changing demographics, councils are right there to meet the needs of ageing communities.
“New opportunities are opening up with specific purpose payments for programs,” he said. “Local Government has a major role to play to be at the decision making table and to deliver for communities throughout Australia.”
He added that new water plans announced by the Prime Minister include Local Government as a significant player. Recycling, reuse and new water management initiatives under this $2 billion program provide a key role for councils.
“The fact that the Prime Minister has taken this whole program into his Department indicates the importance being placed on water reform and that Local Government will be a key player at the table,” Councillor Bell said.
With changes to the Senate from July, the Howard Government will be able to push forward with its agenda. Councillor Bell believes that Government control of both Houses could assist the progress of Constitutional Recognition for Local Government.
“But we have a way to go before we ask the Australian Government to put this matter to referendum,” Paul Bell said. “We need a clear understanding of what Local Government is and what we are asking people to vote on. It will need unanimous support from State and Federal Governments which the IGA will go a long way in achieving by building strong relationships between all three spheres of government. We need to engage the community in what they want included in Constitutional Recognition, particularly specific roles and responsibilities as well as Local Government being secure within the Australian Constitution.”
Turning to the devastation from the Boxing Day tsunami, Councillor Bell said that if communities want their councils to raise funds this can be done. However, he believes that further down the track rebuilding roads, water, sewage and other infrastructure provides an immediate avenue for councils to provide much needed skills and expertise.
“Council engineers and other staff are already indicating to their councils they are ready to go for three to four months,” he said. “This assistance will be vital as damaged communities and their residents start to rebuild their lives.”
