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Finance still frustrates

The Australian Local Government Association (ALGA) has hosted delegates from across Australia at the 2015 National General Assembly (NGA) in Canberra from June 15–17.

Featuring many sessions and speakers over the three days, the theme of the event was ‘Closest to the Community: Local Government in the Federation.’

The 175th Anniversary of the establishment of Local Government in Australia was officially marked on the opening day of the NGA.
Speaking to more than 800 delegates at the conference, Mayor Troy Pickard, President of the Australian Local Government Association, said “although we’re dubbed the third tier of government, Local Government has led the way as the level of government formed in Australia to respond to the needs of the local community, starting with the formation of the City of Adelaide in 1840.

“As the level of government closest to the community, and the local manifestation of government on the ground, this anniversary is a good reminder of the important role of councils and Local Government in our Federation.

“The national discussion around reform is an excellent opportunity to start looking at how all levels of government can have access to appropriate revenues to deliver their respective services and infrastructure.”

Mayor Pickard said that it is vital that Local Government is an active participant in the reform process to ensure that any proposals sustain, and ideally improve Local Government’s capacity to provide for local communities.

“Local Government fully understands that all governments are under financial pressure to meet service expectations, and that is why we support sensible reform.

“But from a Local Government perspective, it is especially important to ensure that the implications of any reform for local communities are carefully examined prior to implementation.”

Mayor Pickard also expressed frustration at the continued freeze on indexation of the Financial Assistance Grants (FAGs).

“Councils across the country are missing out on an expected $925 million in revenue over the period until 2017–18 that would have otherwise been used to fix local community infrastructure and fund crucial community services such as parks, swimming pools, libraries, community amenities, and recreation and cultural facilities.

“In the face of the FAGs freeze, councils are re-evaluating what services and infrastructure they can continue to provide to adjust to the reduced revenue levels.

“The value of the lost grants to one West Australian council equates to the cost of resealing 23 kilometers of road.

“Another council in New South Wales has noted that the loss in grants is equal to a cut in rate revenue of 8.8 percent.

“It is ultimately our communities that will feel the pain of this freeze, so on their behalf, and on behalf of the 560 local councils across Australia, ALGA is renewing its call to the Government to restore indexation of the FAGs as soon as possible.”

Deputy Prime Minister and Minister for Infrastructure and Regional Development, the Hon Warren Truss, announced the government would focus the second round of the Bridges Renewal Programme so that it is open only to Local Government.

“Our experience with the first round showed that State Government projects were better able to meet the criteria for the programme.

“Their projects generally could demonstrate the bigger traffic counts and therefore stronger economic benefits.

“Last mile local projects could not be competitive.

“Therefore, this $100 million second round of the Bridges Renewal Programme will be exclusively available to local government.

“Bridges Renewal Round Two will open on July 1 and close on August 31.

“I encourage councils to work with their Regional Development Australia (RDA) committees and state road agencies in developing their proposals and to consider how their project will complement their RDA regional plan.”

The Sunday prior to the NGA saw the launch of the 2015 State of the Regions report.

‘State of the Regions: Inequality between and within regions’ prepared by National Economics for the ALGA, confirmed trends presented in recent Organisation for Economic Co-operation and Development and International Monetary Fund research papers showing the link between income inequality at a regional level and economic growth on a national level.

“The report identifies a need for policies and investments to be implemented on a region-by-region basis to decrease the existing inequality across Australian regions, which was expedited by the mining boom,” said leading economist and co-author of the report Dr Peter Brain.

“Local government is strategically placed to coordinate job-creation policies at the local level to improve Australia’s economic performance and hence make an important contribution to national economic growth.”

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