The Federal Local Government, Territories and Roads Minister, Jim Lloyd, and the President of the Australian Local Government Association (ALGA), Councillor Paul Bell, have pledged to work together to achieve a new deal for Local Government over the next two years. Minister Lloyd and Councillor Bell met in Canberra in February to discuss how the ALGA and the Australian Government can work more closely to achieve an intergovernmental agreement (IGA).
The agreement is needed to help eliminate cost shifting and its adverse impact on Local Government, estimated to cost Councils between $500 million and $1.1 billion each year.
Minister Lloyd said the strengthening of the partnership with Local Government is needed to address a range of issues that have impeded the progress of Australia’s 675 Councils for some considerable time.
“High on the agenda in securing the IGA is cost shifting,” he said. “While preliminary work on an agreement has already begun, the task of concluding a successful and meaningful agreement that brings together all three levels of government is no easy matter.
“The Australian Government is determined to see this through to completion. I look forward to working closely with Local Government over the course of negotiations. It is clear from David Hawker’s Fair Share Report that Local Government is under significant financial strain, partly as a result of cost shifting.
“I also look forward to working with ALGA to explore ways to address other significant issues, including the need to find additional revenue streams for Local Government. The Australian Government will soon be delivering a formal response in Parliament to the Fair Share Report, which I believe will pave the way to a better and more secure future for all Councils.”
The Fair Share Report detailed a pattern of cost shifting across Australia and has sparked bipartisan support for an intergovernmental agreement.
Councillor Paul Bell said that he was extremely pleased with the Australian Government’s commitment to implement core recommendations of the Fair Share Report.
“Local Government has high hopes that the intergovernmental agreement can bring significant change and help alleviate cost shifting between Local Government and its State and Federal counterparts,” he said. “We’re off to a good start. I am very pleased with Minister Lloyd’s commitment to resolve these issues. The road ahead will not be easy. It will involve detailed and at times difficult negotiations.
“But I am optimistic that, with strong leadership, we will achieve a high level IGA. This will pave the way for a series of bilateral agreements between State Government and Local Government that will help eliminate the significant problems posed by cost shifting and the imposition of unfunded mandates.
“I’m also pleased that Minister Lloyd has agreed to work with us to explore options to address Local Government’s limited ability to raise revenue, as highlighted in the Fair Share Report. By working together, we will get a result that will improve Local Government’s ability to provide efficient, effective and response services to our communities.”
The first steps of the process towards an agreement is officer discussions to scope how it will work.
