Opposition Leader pledges better funding deal for councils

Leader of the Opposition Tony Abbott was unable to attend the General Assembly due to a late interstate commitment, however his prepared speech was delivered on his behalf by Andrew Robb, Shadow Minister for Finance and Debt Reduction.

Some of Tony Abbott’s key points included the following.

We recognise that local councils are fundamental to Australia’s economic prosperity, and the happiness of the communities they serve.

At the outset I want to emphasise that the Liberal party is the natural supporter of strong and effective Local Government. Effective local councils warm the heart of conservatives and liberals alike.

I know councils are short of funds. I’m told rates amount to about 40 per cent of Local Government revenue. Fees and fines are another 40 per cent, and the rest comes from Federal and State Government grants.

Councils are already raising 90 per cent of the revenue they possibly can from their own revenue bases, according to a recent report by KPMG.

Because of the shortfall I’m told there’s a backlog of infrastructure projects that need to be finished: $14.5 billion worth in total.

There’s little point mouthing support for Local Government services without Local Governments having the funds to pay for them. Community expectations of Local Governments have grown, but the funding of local councils has not changed.

A Coalition government will continue the reforms it began in 1996–2007, which gave Local Government unprecedented recognition and direct funding to fulfil councils’ core responsibilities.

In office we will take the next step. Councils need access to additional sources of revenue if they are to satisfy their growing responsibilities.

So today I want to announce that the Coalition will take action to fund local councils directly.

The shift toward direct funding will be part of a broader policy to place Local Government on a more sustainable financial footing. We will also work to mitigate the ability of different levels of government to shift costs onto local councils without appropriate compensation.

The Coalition will continue to work closely with you as we devise policies to address your concerns. We both want the same thing: stronger, well financed and more effective Local Government. I commend you all for your efforts in this cause.