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Chaffey’s Corner: Councils’ shoestring budgets hanging on by a thread

Jamie Chaffy MP, Member for Parkes

As the Shadow Assistant Minister for Regional Development, Local Government and Territories, I have met elected members from right across Australia. One thing they have all had in common is their absolute frustration at struggling to provide the necessities for their communities.

At the Australian Local Government Association (ALGA) National General Assembly in June, more than 1,100 local government leaders from across the country came to Canberra to listen to speakers on a range of issues – and to be heard.

At four drop-in sessions during the week, I listened to the call from each state and territory to address the ever-increasing list of tasks they must perform with dwindling funds.

These are people who are committed, who are innovative, who are resourceful, but who are now desperate. They do not have the funds that are needed. Some are facing coastal erosion, some need help with infrastructure for new housing to address growing populations, some are doing their level best to provide solutions for aged care, and most are responsible for expensive and regulation-bound water infrastructure, sewerage infrastructure, waste disposal facilities and animal handling facilities.

Councils have the least power but are tasked with providing most of the essentials of life. They struggle to keep their communities afloat, particularly in regional areas. Councillors and staff must manage a hugely diverse portfolio of services and infrastructure.

And yet, in Federal Parliament during the week of the ALGA National General Assembly, Australia’s Prime Minister stood up in Question Time and said: “This isn’t a council. This is a serious parliament.”

This remark was made as a number of local government representatives, including council mayors, were present in the chamber.

It is a statement that shows great dismissal and harsh disrespect of our third level of government.

The remark explains the recent Federal Budget that was deafening in its silence when it came to local government.

The national campaign by councils to return the Financial Assistance Grants to 1 per cent of Commonwealth taxation revenue was instead met by a reduction in the program from 0.51% to 0.49%. This sparked an emergency motion at the National General Assembly and a letter to the Speaker of the House of Representatives calling on the Australian Parliament to return Financial Assistance Grants to 1% of taxation revenue.

The emergency motion underscores the level of financial unsustainability being felt throughout local government – they are continually being asked to do more with less.

The Federal Budget also cut the Local Roads Community Infrastructure Program, cut $4.7 billion from infrastructure funding with only 2% of what’s left going to the regions, cut $21.4 million from regional communications funding, put an end to the Inland Rail north of Parkes, and sliced $103 million from the National Water Grid.

People are doing it tough, and so are councils. They cannot keep going to ratepayers to make up the shortfall.

Councils need non-contestable funding rounds for equitable grants – they should not all have to compete with each other – small councils against big councils, remote councils against metropolitan councils – for funding.

The House of Representatives Standing Committee on Regional Development, Infrastructure and Transport’s public inquiry into the funding and financial sustainability of local governments in Australia is hearing the same messages loud and clear: current funding frameworks are not fit for purpose; councils are having to make impossible choices; financial sustainability is declining.

I await the outcomes of the inquiry with interest, and I know the Coalition will be looking to the recommendations to develop policy.

The Coalition wants to invest in communities through their local councils to build on the aspirations of those communities. This is because we trust and respect local government. Only local government can deliver on these aspirations with the support of state and federal governments.

The Coalition has already announced it would implement a Future Generations Fund to go towards cutting government debt, investing in national security, and financing major infrastructure projects.

The Regional Australia Future Fund will help out councils with major infrastructure projects and community services outside metropolitan areas.

Councils put people first, and all of government needs to do the same. We need to do better by our communities.


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