A parliamentary committee will investigate the role of the federal government in addressing the sustainability of local government.

The House of Representatives Standing Committee on Regional Development Infrastructure and Transport announced on Thursday that the new inquiry will consider a range of issues including:

• financial  sustainability and funding

• changing infrastructure and service delivery obligations

• workforce attraction and retention and labour hire practices

Committee Chair Luke Gosling said local government sustainability is essential to supporting the community by providing local infrastructure and related services.

The committee will consider submissions on the challenges faced by the sector in doing this, Mr Gosling said.

“The Committee has prioritised a deeper understanding of local government financial sustainability and funding frameworks, alongside the changing infrastructure requirements and service delivery obligations for local governments,” he said.

Mr Gosling said the Committee is also aware of significant public infrastructure workforce shortages, particularly in local government areas, and the importance of promoting skills development and job security.

“The Committee will examine labour hire and retention trends, including the impacts of labour hire practices, to identify barriers and opportunities to support our local workforce and local government sustainability and service delivery obligations,” he said.

The announcement has been welcomed by the Australian Services Union, which says ongoing funding shortfalls across local government workforces have resulted in outsourcing, reduced services, and an overall erosion in the quality of local jobs and services.

Announcement welcomed

ALGA said with additional responsibilities costing billions of dollars being forced onto Australia’s 537 councils every year, it expects the inquiry will consider and address the financial challenges and funding shortfalls being faced by local governments.

President Linda Scott said the association looked forward to presenting the sector’s case to the committee.

“It’s encouraging that the changing infrastructure and service delivery obligations of local government have been recognised and included in the inquiry’s terms of reference.

ASU National Secretary Robert Potter said the announcement was a welcome acknowledgement that local government mattered.

“Our communities are relying on these local government workforces more than ever yet these services, and the workers that run them, have faced extreme financial pressures and reduced funding, threatening the sustainability of the sector and the critical services they provide,” he said.

However he said more work remains to be done and the ASU is calling for further commitments including increased funding for Federal Assistance Grants.

The committee is accepting submissions until May 3.

Earlier this year, the independent NSW Price Regulator announced it was reviewing the financial model for councils, including whether the current funding system delivers value for money and can sustainably support community needs.

Submissions for the IPART review are now closed, with a report due to government in 12 months.