The Western Australia Local Government Association (WALGA) has attacked the State Government’s budget for not allocating enough funds to finance their planned reform of local government.
The WALGA estimated between $65 million and $100 million would be required to implement the proposed changes in the metropolitan area.
WALGA President Mayor Troy Pickard said the funding detailed in the budget consisted of $5 million for each of the next three years with metropolitan Local Governments able to access low interest loans from a $45 million funding pool.
“We are deeply concerned at the token allocation of a meager $5 million this year to metropolitan Local Governments in what is the most significant structural reform ever undertaken in WA.
“It won’t fund one merger let alone the dozen or so required to meet the Government’s agenda.
“We reject any offer of loans and call on the State Government to fully fund a process that they have driven by immediately making available the lion’s share of the approximate $65 million that will be required to facilitate structural reform.
“The State Budget announcement is a slap in the face for many Local Governments who have participated in good faith in the State Government’s reform agenda for more than five years. It is time for the State Government to stump up or stop the process.”
Mayor Pickard said if reform were to proceed it would be important for WALGA to try to build the case to Treasury to demonstrate the quantum of funding required.
“Local Governments are already under significant strain due to the organisational impact of reform, this decision will place further burdens upon administrations, adversely impact operations and place unnecessary financial stress on communities.”
“Under this approach the only option for Councils to meet the cost of reform is to hike up their rates which will make it even more difficult for the State Government to convince ratepayers on the benefits of reform.”
