President of Local Government NSW (LGNSW), Darriea Turley AM says the organisation is disappointed at what she claims was an “unprovoked attack” on the state’s councils by the Minister for Local Government in State Parliament this week.
President Turley said the sector’s aim was to foster a strong working relationship with the new Labor Government, but were instead left “taken aback at the vociferous nature of the Minister’s attack”.
In Parliament on Tuesday, Local Government Minister and former Botany Bay Mayor, Ron Hoenig (pictured) used Question Time to slam “egregious expenses’ by councils, including Kiama Council’s spending of $105 million for an aged care facility, $350,000 by Liverpool City Council to be renamed as City of Liverpool, and City of Ryde Council’s $110 million price tag for a new civic centre.
The Minister said in Parliament: “Local government need to face their own expenditure issues before they come bleating to the State Government asking for an allocation of funds when it is facing a $180 billion deficit.”
He also referenced an Auditor-General’s report which identified material misstatements or omissions in one-third of NSW councils’ annual reports in the past year.
“The 2021/22 audit report discovered errors worth $1.3 billion,” he told the Parliament.
“Ninety-four out of 128 councils reported high-risk audit findings indicating weaknesses in their processes.”
President Turley has slammed the Minister’s statements as “disappointing” and an “abrupt about face” for the new Government.
“I have held cordial but forthright talks with Minister Hoenig, the Treasurer Daniel Moohkey and the Minister for Emergency Services, Jihad Dib in recent weeks about the huge imposition the massive increase in the Emergency Services Levy (ESL) will have on local councils,” she said.
“All three acknowledge the levy increase will hit some councils extremely hard and are of the view that a new funding model needs to be devised going forward.
“The surprise increase in the Emergency Services Levy imposed by the State Government onto councils will undoubtedly lead to service cutback and job losses in some local government areas.
“So for the Minister to now conflate this issue with the Auditor-General’s report into Local Government is disappointing.
“We know that the Auditor-General’s report reflects that a number of councils have received qualified audits due to their refusal to include the depreciation cost of Rural Fire Service assets they neither own nor control. Prior to the March election, the then Labor Opposition voiced interest in resolving this matter in a number of public forums.”
President Turley said LGNSW remained hopeful that the new NSW Government will change course on its “nonsensical position”, which seeks to “dump depreciation costs for State assets onto council books to make state government budgets look better”.
She said that prior to the March election, the then Shadow Minister for Local Government wrote to LGNSW on behalf of the then Labor Opposition, making clear that the challenges facing councils had been “compounded by a decade-long practice of cost-shifting by the [previous] Government” and highlighting the “decade long drain on local council resources” as a result of State Government actions.
“It is disappointing that post-election the new Minister’s messaging has now taken such an abrupt about face, although it is unclear if this represents the Government’s official position.”
“We are looking forward to working with the Government in a spirit of cooperation and collaboration, and I have written to Minister Hoenig to offer a briefing on the financial challenges faced by local government.
“I hope this attack on councils by him in Parliament is not repeated and that instead we can develop a productive relationship based on consultation and mutual respect,” she said.
