This year’s State and Federal Budgets place unfair burdens on South Australian Councils and their communities.
Despite strong representation from the Local Government Association (LGASA) before both the election and the budget, the Federal Government has failed to renew our supplementary local road funding, reducing us to the lowest proportion of funding in the nation – adding to the pain caused by their freezing of the vital Financial Assistance Grants.
The loss of the $18 million in road funding is more than disappointing and will impact significantly on our regional communities.
While the Federal Government has the right to fund, or not to fund as it sees fit, we were genuinely taken aback that it would apply a cut that only affects South Australia.
The Abbott Government has introduced new funding measures that will be distributed across all Australian Councils but we have been told these funds will not be used disproportionally to fill the $18 million pothole they have created in South Australia, affecting every SA road user this year and every year going forward.
In June, which coincided with the Australian Local Government Association’s National General Assembly in Canberra, I led a delegation of SA Mayors to the Federal Parliament to meet with the Assistant Minister for Infrastructure and Regional Development, Jamie Briggs.
I also, with the LGA CEO Wendy Campana, met with a senior advisor to the Deputy Prime Minister and Minister for Infrastructure and Regional Development, Warren Truss.
We look forward to further discussions with the Government to continue to press our position for a fair go for SA roads.
In the interim, this decision has given us but two choices – cut road programs by $18 million or raise Council rates to cover the gaps.
The State Budget, handed down on 19 June confirmed the challenges ahead for Councils. The increase in the Solid Waste Levy and increase in the Emergency Services Levy will impact directly on Councils.
The Weatherill Government has also announced that pension and low income earner concessions on Council rates will only remain in place until June 2015.
This measure has been blamed on cost cutting in the Federal Budget.
Wherever you want to apportion blame, the end result is that from July next year the $190 pensioner concession will no longer exist, unless the Federal Government reinstates $30 million in funding to SA.
This is of great concern to Councils, particularly those with higher proportions of senior residents and we will campaign strongly for its reinstatement.
The Weatherill Government was formed with the cooperation of Independent MP and now Minister for Local Government and Regions, Geoff Brock.
Part of the agreement that birthed this Coalition was the review of pension concessions.
We had hoped that this would result in an increase to the concession, which has stagnated at $190 for the past decade, not its complete removal.
There were some positives for Local Government from the State Budget including $4 million through the Motor Accident Commission for road safety initiatives and thanks to our long term agreements – funding for libraries, stormwater and community wastewater management systems were quarantined from the Treasurer’s cuts.
But at the end of the day both budgets have provided little joy for our communities and enormous fiscal challenges for our Councils.
