Rising fuel costs a further burden for Councils

Local Councils are bearing the burden of escalating petrol prices, with ratepayers expected to wear an average increase of 21 per cent on fuel bills. New South Wales Minister for Local Government, Kerry Hickey, said a survey of New South Wales Councils showed that rising fuel prices would impact on Council finances.

“The ongoing fuel crisis begs the question of what services will Councils forgo to keep up with rising petrol prices?” the Minister said. “Will the Federal Coalition’s failure to deal with this crisis lead to fewer sporting facilities, fewer lifeguards at the beach this summer, the closure of community pools or less books for kids to read at the library?”

At a Budget Estimates hearing in August, Kerry Hickey said the Coalition was failing Local Government.

“Local Government’s pain is not just being felt at the petrol pump,” he said. “The removal of population growth figures from the Financial Assistance Grants formula in 1997-1998 has meant the Federal Coalition has also pocketed $171 million which should have gone to Councils.”

He said the release of the fuel survey results placed further pressure on the Federal Government to give the Australian Competition and Consumer Commission (ACCC) more power to stop major fuel companies ripping off consumers.

“We are keeping the pressure on John Howard to deliver relief to families and Councils,” he said.

The New South Wales Department of Local Government survey, based on local Council estimates, revealed the following increases in fuel bills between 2005 and 2006:

  • Blacktown City: $362,585 or 22.82 per cent
  • Campbelltown City: $190,922 or 25.16 per cent
  • Tamworth Regional: $531,109 or 46.3 per cent
  • Cobar Shire: $74,012 or 16.34 per cent.