There has been some good news for local councils to come out of the Labor National Conference last weekend with support for the Federation Compact which is not only promising to increase core funding for local government but also addresses road funding, training and capacity building for councils. A Federation Compact is a formal cooperative framework designed to adjust funding, clarify service delivery and redefine financial support responsibilities between levels of government. The continuing cuts to the Financial Assistance Grant’s (FAG) has taken a huge toll on local governments with many councils’ financial sustainability at risk, particularly in rural and remote areas. In the latest budget the FAG was cut to .49 per cent of total tax revenue. When it was first set up in 1974 the FAG represented one per cent of total tax revenue and successive governments, since the 1990s, have been reducing it to where it currently sits. Chairman of the Country Mayors Association of NSW (CMA) and Temora Shire Council mayor, Rick Firman said that the CMA board and its 89 remote, rural and regional member Councils has welcomed the Labor National Conference’s support for the Federation Compact. “Financial sustainability is the number one issue facing our members,” Cr Firman said. “The Federation Compact which we understand was unanimously supported by delegates at the conference is very welcome news. “The Compact goes to the heart of the problems that almost every council in Australia faces; financial sustainability, skills shortages, road maintenance and the capacity to deliver the services our communities need.” After years of lobbying by various local government bodies including the CMA, Local Government NSW (LGNSW) and Australian Local Government Association (ALGA) the commitment to annually increase the level of FAG to councils across Australia is seen as a welcome step forward. LGNSW President mayor Darcy Byrne has also welcomed the announcement to restore adequate funding to councils across Australia to address the financial criss in local government. This is an important breakthrough for councils and communities across NSW and indeed across the nation,” Cr Byrne said. “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. “This has reached a crisis point.” Along with the increase in financial assistance, the five-year Compact announcement 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, support and increase the availability of apprenticeships in local government, as well as other employment programs in a local government context. It will also deliver new capabilities to improve outcomes in housing, planning, emergency management and aged care. ALGA President mayor Matt Burnett said the vote was an important recognition of the financial pressures facing Australia’s 538 councils and the communities they serve. “This result reflects years of determined advocacy by ALGA, councils, local government associations, the unions representing council workers and community leaders across the country,” Cr Burnett said. “This is a significant and encouraging result for local government and for every Australian community that depends on council services and infrastructure. “Labor delegates have recognised that the strength of local government is essential for our nation’s future through a federation compact. “Today’s vote sends a strong message that councils must be properly supported to maintain local infrastructure, deliver essential services and respond to the changing needs of their communities.” The funds associated with FAG’s are important for councils as they are not tied to specific grants or funding which allows councils to deliver the infrastructure and services their communities need and demand. Cr Firman added that While we appreciate there is more work to do, to tease out the fine details of the operation of the Compact, the commitment to on-going annual increases for the FAG is great news. “We thank the Prime Minister for supporting this great initiative and recognise the work that now needs to be done to turn the Labor Party’s overwhelming support for the Compact into implemented government policy as quickly as possible,” he said. In terms of what it means locally to the Temora Shire Cr Firman said that if it was restored to previous levels that has a significant impact in a positive sense on our bottom line. “So that's why all of us are hoping and praying that this will happen sooner rather than later, Cr Firman said. “But obviously, you know, we would be encouraging the government and indeed the opposition as well to ensure that this is implemented for the 27/28 budget. “But at the end of the day, it's a positive start and a step in the right direction.”
