Councils have been campaigning for the government’s commitment to Financial Assistance Grants (FAGs) commitment to be doubled. Instead, it will drop slightly in the new financial year.
These grants have been reduced from one per cent of Commonwealth taxation revenue in 1996 to just 0.05 per cent today.
Individually and through united fronts via Local Government NSW and Country Mayors Association of NSW, Edward River and Murray River Council have been demanding the grant be brought back up to a minimum of one per cent.
If successful, MRC’s allocation could increase to more than $20 million.
For ERC, the allocation could rise to more than $14 million.
Country Mayors chairman, Mayor Rick Firman OAM, said the failure to increase FAGs in the budget was among a “mixed bag of outcomes’ for rural and regional NSW.
“We are extremely disappointed the budget has failed to recognise the very real financial challenges that local governments everywhere are having delivering services and infrastructure to the communities they serve,” he said.
“The government’s failure to increase the Financial Assistance Grants funding allocation is a slap in the face.
“It is unbelievable that in an economy where prices in all sectors are increasing, the Financial Assistance Grants allocation has fallen from 0.51 per cent of total Commonwealth taxation revenue to 0.49 per cent. It’s just not good enough.”
“It is time for our Federal Government to recognise the pivotal role that councils play in maintaining the health, economic and social wellbeing of every community in Australia.
“It needs to see that investing in local government is investing in the social fabric and social cohesion of 538 communities that are represented by their local council.
“Other grant funding announced in the budget does not make up for the shortfall in the quantum of the Financial Assistance Grant.
“Remote, rural and regional councils rely on this grant to provide and maintain public pools, sporting fields, parks and gardens, libraries and cultural infrastructure, not to mention the breadth and depth of supporting services we all provide.”
Cr Firman said Country Mayors was pleased to see continued commitment to bringing the Roads to Recovery Program up to $1 billion dollars a year, and attempts to reduce barriers to housing construction.
But he said the promises attached with the latter were not yet strong enough to adequately support rural and regional Australia.
“We are pleased to see that the Federal Government has recognised that one of the greatest barriers to housing construction is the cost of enabling infrastructure like roads, stormwater, electricity and water with its announcement of $2 billion in funding over four years to help in its delivery.
“But only $500 million is earmarked for regional Australia, which is not nearly enough to deal with the growing demands for housing in regional areas.
“In NSW alone, our 89 member councils represent almost three million people spread over an area of more than 700,000km.
“All our members are reporting problems with funding and delivering enabling infrastructure like roads, water, stormwater and sewerage.
“While $500 million seems like a lot of money, when shared across all of regional Australia across four years, it is not nearly enough funding.”
Lobbying from Country Mayors will continue.
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