THE Country Mayors Association of NSW is calling on Premier Barry O’Farrell to publicly support the recognition of local government in the Australian Constitution.
The Association’s Chairman, Gunnedah Mayor Adam Marshall, said members unanimously resolved to write to the Premier and Local Government Minister Don Page, requesting the NSW Government to clearly state its public support for the financial recognition of local government.
“Country Mayors support financial recognition of our industry via a simple and pragmatic change to section 96 of the Constitution to remove the doubt about the Commonwealth Government’s ability to fund local councils,” Cr Marshall said.
“Ensuring that the Commonwealth can continue to directly fund local government is critical to the financial sustainability of the sector and its ability to provide the services and facilities that our communities expect and deserve.”
Cr Marshall said the 2009 High Court case of Pape v Commissioner of Taxation brought into question the Commonwealth’s ability to deal directly with local councils because local government is not included in the Constitution.
“This case has created grave uncertainty about the future funding of local government,” he said.
Cr Marshall said that programs such as the Roads to Recovery (R2R) program and the Regional and Local Community Infrastructure Program are crucial to the financial sustainability of local government and the wellbeing of local communities.
“Since the R2R program was established in 2000, more than $3.5 billion in additional funding has been provided to around 560 councils across Australia to improve local roads,” he said.
“Achieving financial recognition would provide certainty of continuing to receive direct Commonwealth funding such as R2R.
Without recognition this funding could disappear for good and that’s why we’re looking to the Premier and his government for unequivocal public support for this simple and pragmatic financial recognition in the Constitution.”
The Prime Minister has committed to holding a referendum on the question of recognition of local government in the constitution at the next election. An expert panel, established by the government in June last year, has endorsed the financial recognition (section 96) amendment as the most likely to succeed. The local government sector is now awaiting the government’s response to the panel’s findings.
