Australian Government and ALGA working together to address cost shifting
11 February 2005
Joint media release
The Minister for Local Government, Territories and Roads, Jim Lloyd, and the President of the Australian Local Government Association, Councillor Paul Bell, have today pledged to work together to achieve a new deal for local government over the next two years.
Mr Lloyd and Cr Bell met in Canberra this week to discuss how ALGA and the Australian Government can work more closely to achieve an intergovernmental agreement to help eliminate cost shifting and its adverse impact on local government, estimated to cost councils between $500m and $1.1bn each year.
"Today we are strengthening partnership with local government to address a range of issues that have impeded the progress of Australia's 675 councils for some considerable time," Mr Lloyd said.
"High on the agenda is securing the IGA on cost shifting. While preliminary work on an agreement has already begun, the task of concluding a successful and meaningful agreement that brings together all three levels of government is no easy matter."
"The Australian Government is determined to see this through to completion.
"I look forward to working closely with local government over the course of negotiations. It is clear from David Hawker's Fair Share Report that local government is under significant financial strain, partly as a result of cost shifting.
"I also look forward to working with ALGA to explore ways to address other significant issues, including the need to find additional revenue streams for local government.
"The Australian Government will soon be delivering a formal response in Parliament to the Fair Share Report, which I believe will pave the way to a better and more secure future for all councils," Mr Lloyd said.
Cr Bell said that he was extremely pleased with the Australian Government's commitment to implement core recommendations of the Fair Share Report.
"Local government has high hopes that the IGA can bring significant change and help alleviate cost shifting between local government and its state and federal counterparts," he said.
"We're off to a good start. I am very pleased with Mr Lloyd's commitment to resolve these issues. The road ahead will not be easy. It will involve detailed and at times difficult negotiations.
"But I am optimistic that, with strong leadership, we will achieve a high level IGA. This will pave the way for a series of bilateral agreements between state government and local government that will help eliminate the significant problems posed by cost shifting and the imposition of unfunded mandates.
"I'm also pleased that Mr Lloyd has agreed to work with us to explore options to address local government's limited ability to raise revenue, as highlighted in the Fair Share Report.
"By working together, we will get a result that will improve local government's ability to provide efficient, effective and response services to our communities," Cr Bell said.
