The federal Labor government has promised to restore adequate grants to councils across Australia to address the financial crisis in local government. The announcement came at the ALP National Conference, held over the weekend.
The peak body representing the state’s 128 councils, or local government areas (LGAs), LGNSW warmly welcomed Sunday’s announcement, saying the newly formed Local Government Federation Compact ‘includes a commitment to annually increase the level of Financial Assistance Grants (FAGs) to councils across Australia’.
LGNSW President Mayor Darcy Byrne said, ‘This is an important breakthrough for councils and communities across NSW and indeed across the nation’.
‘Australians rely on councils every day to deliver the grassroots services and infrastructure that keep local communities running. For too long, the lack of secure and untied funding has prevented councils from making the investments needed in local infrastructure and services’.
Crisis point
‘This has reached a crisis point’, he said.
‘The pressure is particularly acute in rural, regional and remote communities, where the most isolated councils face the biggest financial challenges’.
‘At the same time, our fast-growing urban councils are under increasing strain as they work to meet the needs of expanding populations.
‘The crisis in local government funding is real and this new national agreement is exactly what’s needed to secure basic, local services in municipalities across the country.
‘This commitment will provide councils with the funding they need to meet local priorities and deliver the basic services all Australians deserve.’
‘Along with the increase in financial assistance, the five-year compact will:
- Ensure Roads to Recovery funding can be used to purchase plant and equipment to enable councils to carry out their own road maintenance with their own trained workers, to the extent possible;
- Support and increase the availability of apprenticeships in local government, as well as other employment programs in a local government context;
- Deliver new capabilities to improve outcomes in housing, planning, emergency management and aged care; and
- Ensure the government publishes an annual summary of funding for local government’.
Mayor Byrne said LGNSW looked forward to working constructively with the Federal Government and with the unions representing the local government workforce, along with the other national, state and territory local government associations to develop and implement the Federation Compact.
‘By bringing all levels of government and unions representing local government workers together we are set to build a new and brighter future for local councils and local services in Australia.
‘Councils stand ready to work with the Government to ensure this commitment delivers the financial certainty local communities need.’
Kyogle mayor Danielle Mulholland said in a statement, ‘The federal Government has made a commitment to increase Financial Assistance Grants (FAG), highlighting the key benefits for rural, regional and remote councils facing an escalating funding crisis.
The Local Government Federation Compact announced over the weekend, at the ALP National Conference, includes a commitment to annually increase the level of Financial Assistance Grants to councils across Australia, helping strengthen the long-term sustainability of Local Government.
Financial Assistance Grants are a vital source of untied funding that councils use to help fund local roads, infrastructure and community services.
‘This is a positive step forward.
‘Now to get the “minimum per capita” provision removed. This part of the FA Grants is based on dollars per head. Obviously, the bigger your population, the more money you get. I am of the view that the money should go to Councils most in need, particularly when it comes to delivering essential services’, she said.
Lismore City Council Cr, Jasmine Knight-Smith (Labor) said, ‘Welcome news for regional communities’.
‘The Federal Government’s commitment to increase Financial Assistance Grants for councils is a positive step toward addressing the growing financial pressures facing local (particularly regional and rural) government.
‘For regional councils like Lismore, this funding helps support roads, infrastructure and maintaining essential community services that metropolitan councils do not. They often have the state government looking after the big budget drains, think Sydney water (These include: water, airports, large unsealed road networks, bio security and weed control, village water and sewer schemes, bridges, causeways and creek crossings, Crown land recreational areas, large sealed road networks, and flood pumps and a levy in our case).
‘I welcome this commitment and look forward to seeing real benefits delivered to our community.
‘I love Lismore. I love regional Australia’, she said.
Win for regional communities
Lismore MP, Janelle Saffin (Labor), has hailed a new Local Government Federation Compact announced at the ALP National Conference in Adelaide as a major win for regional, rural and remote councils and their communities.
‘I was proud to be among the NSW delegates who voted unanimously in favour of annually increasing Financial Assistance Grants to the Australian local government sector,” Ms Saffin said.
‘I applaud Local Government NSW President Cr Darcy Byrne and United Services Union General Secretary Graeme Kelly OAM (both city dwellers) for championing this campaign since 2018.
‘Both are committed to fairness for all, and their strong advocacy demonstrates this.
‘The Compact is a game changer for our communities and especially so the ones that make up the Lismore Electorate I am honoured to represent –Tenterfield Shire, Kyogle, Lismore City, Byron Shire, and Tweed Shire.
‘I look forward to the advance of the amendment and its implementation.’
For four decades The Echo has printed the stories some people loved, some people hated, and some pretended not to read. If you want us to keep telling the truth, the real truth, not the sugar-coated version. We’ll need your support to keep the presses rolling. 
