COAG: Local government has foot in the payments door
The Prime Minister and Premiers have agreed that, where local government participates in the national reform agenda, it should share in the benefits of the reform process. Local government's inclusion in payment arrangements under a new, ten year reform agenda was raised directly with the Prime Minister by ALGA President, Cr Paul Bell, at last Friday's meeting of the Council of Australian Governments . As a result, it was agreed that "payments to the states and territories and, where appropriate, to local government, would be linked to achieving agreed actions or progress measures and to demonstrable economic benefits, and would take into account the relative costs and proportional financial benefits to the Commonwealth, the states and territories, and local government of specific reform proposals." The exact way in which payments will be made under the reform agenda is yet to be determined, but will be based on 'intergovernmental action plans' that will set out agreed outcomes, progress measures and milestones. The Premiers had pushed for a commitment from the Commonwealth to make up front payments for participation in the reform agenda, a move flatly rejected by the Prime Minister. Instead, 'milestone money' will be available. Cr Bell said that he was pleased with the outcome. "Local government has specifically been included in the section of the COAG communiqué dealing with funding arrangements," he said. "That's an important start - we've got our foot well and truly in the door". Under the current national competition policy reform agenda, which expires in June this year, some states made some payments to local government for their contribution to the reform process.
R2R: strategic component guidelines out soon

The Australian Government will shortly invite councils to submit regional road projects for possible funding under the strategic component of the Roads to Recovery program. Some $127m is currently available following a $100m top-up announced by Local Government Minister Jim Lloyd at last year's National General Assembly of Local Government in Canberra. The Commonwealth will write to councils with funding guidelines in early March. Councils will also receive a CD-ROM enabling councils to make online submissions in a specified format. The Federal Department of Transport and Regional Services has consulted ALGA - and through ALGA, state associations - on the development of the guidelines. ALGA is aware of concerns that the Australian Government may have a pre-determined list of eligible projects, or that proposals that have already been submitted hold an advantage. ALGA has had assurances that this is not the case. ALGA President Cr Paul Bell has previously requested and secured undertakings from the Australian Government that funds now available would be allocated under a fair and open process, and that projects already submitted would have no advantage over new proposals. The process to evaluate projects will be assessed on their comparative merits against standard criteria. Proponents who have already submitted projects will be invited to re-submit them in the specified format. Once called, councils will have about two months to lodge submissions. The Department has advised that the program will encourage submission of projects of a genuinely regional nature, especially those developed in collaboration between two or more councils and local industry.
COAG refers airport angst to transport ministers

State premiers have supported local government concerns about rampant development on federal airport land. On Friday, the Council of Australian Governments noted the concern "regarding implications of some development on Commonwealth property and agreed to refer the issue to the Australian Transport Council (ATC) to examine". Late last year, ALGA raised council concerns at ATC, including the proliferation of development outside local planning controls, the impact of development on surrounding infrastructure, access and congestion issues, and the exemption of property owners from paying rates. The Commonwealth's response to date has been uncompromising, arguing that the contribution made by privatised airports to local communities goes unappreciated. At the last ATC meeting in December, Federal Transport Minister Warren Truss said the Commonwealth would not amend its Airports Act to address council concerns. But - in a small concession - he said he would "make it clear" in the Act's guidelines that there will be a formal notification process to alert state/territory and local governments to planning developments on airport land. ALGA will monitor progress on this undertaking and will press for further concessions when the matter again comes before ATC later this year.





