Upper Hunter Shire Council has cautiously welcomed two recent Federal Government announcements of fairer funding for local government and greater financial returns for communities hosting renewable energy projects.
The proposed Local Government Federation Compact includes increased Financial Assistance Grants, greater flexibility for road funding and support for council workforce programs. The Upper Hunter council says it has long called for Financial Assistance Grants to be restored to 1% of Commonwealth taxation revenue.
Mayor, Maurice Collison welcomed the announcement but says more detail was needed.
“This is an encouraging announcement, but we need to see clear funding commitments, timeframes and an implementation plan,” Mayor Collison said.
“Federal support for local government has fallen too far while councils are being asked to deliver more. It is now time to restore funding to a fair and sustainable level.”
The Council also welcomed a proposal for renewable energy developments to make direct payments to the councils and communities hosting them. Renewable energy projects are already operating or being developed around Merriwa and Cassilis.
While some of these projects are already contributing to local communities through benefit sharing arrangements, the Council believes that the payments made by renewable energy projects should reflect the income they generate and the impacts they have on local communities and resources.
Deputy Mayor, Pat Ryan remarked that regional communities carried significant impacts from renewable energy development.
“Our roads experience more heavy traffic, there can be increased pressure on water, housing and services, and there are impacts on our rural landscape,” Cr Ryan said.
“The communities hosting these projects should receive a fair share of the value they generate.
“If councils cannot rate renewable energy developments differently, a royalty-style payment may be a fair alternative.”
Cr Ryan concluded that Council welcomed the intent of both announcements but remained concerned about the lack of detail.
“We need to know how much funding will be provided, how it will be distributed, when it will begin and whether existing projects will be included,” Cr Ryan said.
“We welcome the intent, but these announcements must lead to genuine funding and practical benefits for regional communities.”
