Reports urge fair share for local government

The New South Wales peak body for local government has welcomed a parliamentary report recommending stronger financial support for councils.

Receiving over 130 submissions and holding 10 public hearings, the NSW Legislative Council’s standing committee inquiry into the financial sustainability of councils recognised that more assistance was needed from state and federal governments.

The result aligns with submissions from councils across the state, said Local Government NSW president Darriea Turley. “This is a wonderful outcome for councils and their communities. LGNSW has long advocated for more support from both state and federal governments to ensure the financial sustainability of local councils is secured.”

Among the standing committee’s recommendations:

• a review of rate exemptions and concessions
• a redesign of the rating system
• an increase to financial assistance grants to 1% of Commonwealth taxation revenue
• changes to the developer contributions framework
• more timely disaster recovery assistance to councils
• ongoing funding streams for disaster mitigation and preparedness
• reduce cost-shifting onto councils.

“The recommendations contained in the report demonstrate that the inquiry heard our call,” Turley said.

The standing committee’s report recognises that – without financial support – services will erode and communities will suffer, the Broken Hill City councillor added. “We’re hopeful that this recognition will pave the way for the much-needed improvements.”

Now that the report has landed, LGNSW is calling on the state government to act on the recommendations “in close partnership with councils to achieve better sustainability, resilience and productivity outcomes for all NSW communities”, said Turley.

Vic councils under financial strain

Meanwhile, a Victorian Government inquiry into local government funding found that rising infrastructure and service delivery costs are putting councils under significant financial strain.

In an effort to ease the financial burden, a report from the Legislative Council Economy and Infrastructure Committee – which has been tabled to parliament – recommends that the Victorian auditor-general investigate the impacts of cost-shifting by state and federal governments onto local councils.

The report also calls for:

• reviews of the ratings system and rate cap formula
• increased untied funding for councils to address key areas such as roads
• the consideration of growth funds to support infrastructure for different groups of councils experiencing rapid growth
• reinstate the 50:50 shared funding split between the state and local governments for public libraries and the school crossing supervisor program
• and the reinstatement of the council planning flying squad to help ease the backlog of planning requests for the state’s 48 regional and rural councils.

“This report has attempted to provide a balanced analysis of the issues faced and to provide some ways forward,” said committee chair George Purcell.

Jennifer Anderson, president of the Municipal Association of Victoria – the local government peak body – said the committee’s recommendations drew extensively from MAV’s submission and concerns from councils across the state.

“It is clear the committee has taken seriously the weight of evidence presented before it by the MAV and councils in recognising the value of the role of local government and the challenges councils face in continuing to deliver high-quality services and infrastructure to their communities.”

Anderson said the call to further investigate the impacts of cost-shifting is critically important. “Cost-shifting takes numerous forms and has a real-life impact on several council services.”

MAV is also pleased to see the committee acknowledge that the costs of infrastructure and service delivery have risen at a pace that outstrips the growth in grant funding. “As a result many Victorian councils are being forced to make hard decisions about which essential community services to stop delivering,” Anderson said.

She added MAV will continue to advocate on behalf of councils “to be a constructive and critical delivery partner to the state government as we support inclusive, resilient communities and thriving neighbourhoods and towns across Victoria”.