The peak body for local government has cautiously welcomed the state government’s response to a financial sustainability crisis that is threatening the viability of the sector.
LGNSW President, Mayor Phyllis Miller OAM said it was helpful for the sector to finally receive some clarity about the state government’s position in response to the 17 recommendations of a parliamentary inquiry into the ability of local governments to fund infrastructure and services and to get an understanding of their vision for longer term reform.
‘I do thank the government for their commitment to involve the sector in shaping and implementing the necessary reforms going forward through the establishment of an Expert Advisory Panel and we’re grateful for their preparedness to partner with councils in seeking that Financial Assistance Grants from the Commonwealth return to 1 per cent of Commonwealth taxation revenue,’ said Mayor Miller.
‘However, some of the government’s suggested measures for addressing financial sustainability concerns could actually add to the administrative burden currently on councils,’ she said.
Special rate variations
‘For instance, in regard to the process for special rate variations, the government is suggesting councils undergo a comprehensive spending review – something we would argue that councils already do via their annual budget process. This is carried out by their democratically elected body in line with their community’s wishes.
‘While there is a lot in the government response that we can absolutely agree on, there are a number of key areas where more detail is required – such as the absence of leadership on reducing cost shifting or addressing issues with the development contributions framework. On this and other aspects of the report, I look forward to working with Minister Hoenig and with the government to develop and implement the reforms that will be required.
‘Overall we see this as a first step in the reform of local government financial sustainability. Councils stand ready to work with the state to make meaningful change and bring about genuine and substantial reform to the financial viability of councils.
‘This inquiry – and its recommendations – were a huge step forward and we are keen to see the government commit to their implementation so that councils can continue to deliver for our communities.’
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