Australian Local Government Association

2004 Federal election

Give local government a fair go says peak body

14 September 2004

Local government feature by Paul Lewer

The Australian Local Government Association is urging the contenders for the Federal Government benches to commit to a much better deal for what is increasingly becoming the "poor relation" of government in Australia, as Paul Lewer reports.

In a comprehensive and closely argued election blueprint on the state of local government across the country now with the political parties the ALGA argues that this tier of government - often most closely linked to essential services for average Australians in the city, the regions and the bush - is being starved of funds.

"Local government is under increasing pressure; it stands alone as the only sphere of government without access to a growing source of revenue," says ALGA President and Moree farmer, Mike Montgomery.

"The Australian Government and the Federal Opposition have made important commitments to local government in the past few years; now we seek their commitment to a new deal for local government to help us build better communities," Councillor Montgomery points out.

The facts in the hard-hitting report to the federal political parties say it all: Local government plays a critical and growing role in the Australian federation; it delivers an increasingly diverse and important range of services to the community. Local government, for example, maintains nearly 85 per cent of the nation's roads and a vast array of community infrastructure.

A salient point raised in the blueprint is that despite growing responsibilities, local government faces a cash crisis as demographic change and an ageing population put the squeeze on the sole source of local government tax revenue - property rates.

Local government has been encouraged by bipartisan support for a landmark inquiry - Rates and taxes: A fair share for responsible local government - that has recommended major changes to give local government the cash to do its job.

Councillor Montgomery takes up the argument: "We want a summit convened to set an overarching agreement on the roles and functions of each sphere of government," he says.

The ALGA is not the only body pushing local government's - and the Australian community's - barrow.

A report from the House of Representatives Standing Committee on Economics, Finances and Public Administration found that the governance arrangements between the three spheres of government denied local government a fair share of national revenue.

"We must replace the grossly inadequate system of financial assistance grants - a system that's nearly 30 years old - with one that provides local government with genuine growth funding based on a fair share of national taxation revenue," Councillor Montgomery avers.

"Both the Australian government and the state and territory governments now have a tax base - through the GST - that delivers real growth in revenue directly related to the growth in the Australian economy as a whole," the ALGA chief points out.

"But local government has been left behind because its sole source of taxation revenue is a property tax - rates."

Among other moves, the election blueprint points to local government's role in environmental protection.

The submission calls on the Australian government to realise the full potential of further direct collaboration with local government on natural resource management. It points out that at least 86 per cent of the cash that local government spends on environmental protection and natural resource management - $4.3 billion on the latest figures - comes from within its own resources.

Among other major calls to the incoming federal government the ALGA has called for more investment in regional infrastructure, particularly transport infrastructure; more support for regional aviation and airports; encouraging educational and training opportunities; boosting business development and tourism, boosting regional information technology and improving access to health care.

The election blueprint contrasts the position of local government in Australia with that overseas.

"Europe, in particular, has invested in regional development," says Councillor Montgomery, adding "and a strong regional emphasis is evident as well in North America."

The blueprint slams what it describes as "unacceptable inequalities" between Australia's regions, saying these inequalities are likely to grow without urgent action to address regional economic growth and development.

It says regional Australia needs enterprise zone-type mechanisms to encourage investment and stimulate growth in distressed regional communities.

Councillor Montgomery makes another telling point: Businesses in the bush are finding it difficult to access finance, attract outside investment, recruit skilled workers and navigate what he describes as "prohibitive regulation". He says that keeping skilled workers in the longer term is a major challenge in man y local government areas.

Then impact of the wholesale flight by banks from much of country Australia is another issue in the ALGA's sights.

It advocates that the incoming federal government evaluate the legislative requirements on banks to satisfy the needs of the entire community.

"Measures introduced overseas must be evaluated," says the ALGA president. "Banks must be encouraged to be more involved in the economic life of communities in rural regional and remote Australia," Councillor Montgomery says.

"Continual efforts must be made to close the 'digital divide' between regional and metropolitan Australia. This would help with electronic access to services. The federal government needs to keep pursuing initiatives that increase affordable broadband access in the bush."

In other developments, the blueprint calls for a fundamental shake-up of all facets of education in regional Australia.

Councillor Montgomery points to the need to develop skills in Australian communities, from basic literacy and numeracy to those skills required to meet the fundamental needs of the community and how best to adjust to the changing nature of work.

"A community committed to lifelong learning and capacity building can contribute to expanding commercial opportunities and offer new solutions to regional challenges," he says.

The ALGA is calling as well for a boost from the federal government for local government public libraries. These repositories of literacy - because of funding problems - suffer from falling investment in book stocks and a lack of capacity to access or service online information or digital collections.

"We want a commitment from the major parties to support public libraries as an essential cornerstone of literacy in our communities," Councillor Montgomery says.

The battle by councils to maintain health services, support small rural hospitals and recruit and keep doctors in their communities is also in the spotlight.

The ALGA is calling on the incoming federal government to set up an infrastructure fund to cover councils' costs when getting facilities to recruit or keep doctors in their towns and regions.

"The current federal government has done much valuable work in this area but more needs to be done to ensure the good health and welfare of people in our communities," says the ALGA president.

Also on the health front the ALGA election blueprint calls on the major parties in the election to commit to an immunisation incentive programme for local government, for seeding grants to meet the needs of seniors and federal government resources to buttress a sustainable framework for childcare services.

 

14 September 2004

Paul Lewer is a Walkley Award winning journalist based in rural southern New South Wales.

Download the Blueprint for building better communities [PDF 142Kb]

2004 Federal election: ALGA Index