Australia's National Local Government Newspaper Online

Message from the Minister

It has been a busy year so far for the Australian Government in terms of its Local Government responsibilities. The following is an update on some of the work I have been overseeing recently.

2006-07 Financial Assistance Grants

The Australian Government will be providing Local Government with an estimated $1,684 million in financial assistance grants in 2006-07. The payment of the grants commenced on 15 August 2006. This is an increase of $65.7 million or 4.06 per cent over 2005-06 as a result of indexing in accordance with population growth and the CPI to maintain their value.

The annual amount of these grants has increased by around 45 per cent or $520 million since the Howard Government came to office in 1996. The financial assistance grants are equal to about eight per cent of total Local Government revenue, though for some small rural and remote councils these grants can make up more than 50 per cent of their annual revenue.

Detailed in the table below is the 2006-07 estimated financial assistance grant entitlement by jurisdiction.

In addition to these grants, South Australia's councils will receive $13.0 million in supplementary local road grants in 2006-07 as part of a $26.25 million package over three years. This is in recognition that the local roads component of financial assistance grants for South Australian councils is less in proportion to the length of roads and population of other States.

The financial assistance grants are in addition to funds provided to Local Government under the Roads to Recovery programme and other Australian Government programmes.

Additional R2R funding

An additional $307 million under the Roads to Recovery programme was provided to councils in June 2006 for expenditure over the next three years, bringing the total commitment under the second Roads to Recovery Program programme to over $1.7 billion.

The local roads components of AusLink, which includes Roads to Recovery funding, have been hailed universally by Local Governments as the most valuable assistance programmes for improving their transport infrastructure and enhancing quality of life in both the city and the country. The Australian Government is pleased to be in partnership with Local Government under the Roads to Recovery programme to improve this vital component of local infrastructure.

Government Response to the Hawker Report

In its response to the Hawker Report the Australian Government agreed to do a number of things, including:

• developing, with the State and Territory Governments and Local Government, an Inter-Governmental Agreement on relations with Local Government
• proposing a Parliamentary resolution on Local Government that recognises Local Government as an integral level of governance in Australia
• developing a new National Principle under the Local Government (Financial Assistance) Act 1995 specifying that financial assistance grants for amalgamated councils be maintained for four years after amalgamation so as not to deter councils from amalgamating
• reviewing the interstate distribution of the roads component of the financial assistance grants through the Commonwealth Grants Commission.

I am very pleased to report that there has been significant progress on all of these undertakings. I reported on the signing of the Inter-Governmental Agreement on Local Government Relations in the May 2006 issue of Local Government - A National Perspective. This historic Agreement provides, for the first time, a national framework within which Local Government can negotiate with other governments on the arrangements for the delivery of services those governments require of Local Government.

I am pleased I was able to move in the Parliament on 6 September a Parliamentary resolution recognising and celebrating the role and importance of Local Government as well as the contribution made by elected local councillors throughout the country for their community service.

The new National Principle maintaining funding for amalgamating councils came into effect on 1 July 2006.

The Commonwealth Grants Commission report on the interstate distribution of roads funding was completed on 30 June 2006 and the Government is now considering the report's recommendations.

In responding to the Hawker Report recommendations, the Australian Government is demonstrating our ongoing commitment to Local Government and our belief that Local Government can and does provide a level of governance that supports all Australian citizens and promotes an effective democracy in which all residents can participate and contribute to.

Local Government and Planning Ministers' Council

The Local Government and Planning Ministers' Council met in Adelaide on 4 August 2006. Some of the major items for discussion included Local Government financial sustainability, climate change, and communities affected by rapid population growth.

In terms of Local Government financial sustainability, the Council of Australian Governments (COAG) recently decided to discuss Local Government funding at its next meeting in early 2007. The Local Government and Planning Ministers' Council agreed to pursue nationally consistent approaches to the financial sustainability, asset management and financial reporting of Local Government, and agreed that these should be developed and provided to COAG for its next meeting.

The Council agreed to review climate change initiatives aimed at encouraging more energy efficient land use planning practices and infrastructure provision, and the development of a National Adaptation Framework, and to report to COAG by November 2006. The Council also agreed that a proposed review of the available tools for assessing the sustainability of the built environment be referred to the Planning Officials Group to consider the merits of a national approach. The Council considered the needs and opportunities for collaboration on managing issues associated with communities affected by rapid population change. The Council agreed that the Planning Officials Group would consider opportunities for collaboration on best practice guidance on sustainable regional planning strategies (physical and economic), and best practice guidance on assessment tools and processes for determining sustainable land division development proposals.

For information on the full range of topics discussed at the Local Government and Planning Ministers' Council meeting, the communiqué is available at the Council's website at www.lgpmcouncil.gov.au

National Awards for Local Government

This year the National Awards for Local Government attracted 210 entries in the 18 categories available.

Category judging was completed in mid August and the category winners have been announced. Congratulations to all the category winners and those who received commendations for this year's Awards. I am always impressed by the quality of the entries received in the National Awards - it shows the excellent work being undertaken by Local Governments throughout Australia.

The category winners will now be judged by the National judging panel and the National Winners will be announced at a dinner held in conjunction with the Australian Local Government Association's National General Assembly in Canberra on 27 November 2006.

For a full list of 2006 category award and commendation winners visit www.dotars.gov.au/local/awards/winners_2006.aspx

The following articles are also included in this edition or go BACK to the main page: