NSW Country Mayors Association (CMA) chairman, Mayor Rick Firman OAM, has bemoaned the major parties’ lack of commitment to Local Government and their failure to address funding shortfalls revealed in the recently released Interim Report into Local Government Sustainability.
“Despite on-going calls from all Local Government peak bodies and from individual councils for the annual Commonwealth Financial Assistance Grants to increase 1% of taxation revenue, not a single party has addressed the issue,” said the Chairman and Temora Shire Mayor.
“Do they think that if they ignore us, we will just go away? Not likely!”
“Declining Commonwealth contributions, coupled with rate pegging in NSW and increasing operating costs are making it extremely difficult for councils and particularly country councils to continue to deliver services and infrastructure at the levels their communities need and deserve.
“Local Government expects that the unique role that councils perform in delivering on-ground services to the people living in every corner of Australia will be recognised and funded appropriately by the Commonwealth. The Federal Election provides a platform for all parties and the Independents to make that commitment,” he said.
Mayor Firman said rural councils across NSW face unique cost pressures with many Local Government Areas the size of small European countries.
“The Interim Report identified that Local Government is being increasingly relied upon to deliver services and infrastructure which were traditionally under the purview of the Commonwealth, state and territory governments, and yet Commonwealth grants have decreased not increased,” he said.
“We believe it is completely unacceptable that we should wear the responsibility without adequate funding.”
In addition, CMA research has shown that apportioning the Grants based on population does not see funds go to where they are most needed. In smaller country councils in NSW, the Grant can constitute over 70% of revenue, while income from rates and Council fees is essentially stagnant and prospects for growing these income sources is extremely limited.
“We all know that Australia is a big country, there is no getting away from the fact that local councils take on the lion’s share of the responsibility for delivering services and infrastructure into our rural, regional and remote communities. It is about time that this was recognised with appropriate levels of Commonwealth funding,” Mayor Firman said.
Prior to the announcement of the election, the CMA wrote to Prime Minister, Anthony Albanese; Leader of the Opposition, Peter Dutton and to the Leader of the National Party, David Littleproud, requesting meetings to discuss the issue.
“It is incredibly disappointing that we have not had a single written response to our correspondence about this critical issue,” said Mayor Firman.
“A recent Zoom meeting with Shadow Minister Darren Chester did not provide any indication that the Coalition was prepared to provide any leadership on the issue. While the CMA appreciated the time the Shadow Minister took to meet with us, we seem to be on very different wavelengths.
“Local Government is constantly expected to step in to fill the service and infrastructure gaps left by the Commonwealth and yet they seem to be ignoring the very real financial constraints that most councils are working under.
“Enough is enough! Something has to give, the status quo simply cannot continue,” he said.
