Australian Local Government Association

Kim Carr's Future Cities paper canvasses a "new deal" for local government

1 December 2005

The Australian Local Government Association has today welcomed the release of a Labor policy options paper on urban development, housing and local government, saying it opened an important discussion on how the Commonwealth should be involved in the development of Australian towns and cities.

ALGA President, Cr Paul Bell, said the policy paper - Australia's Future Cities (PDF 900 kb) - was particularly welcome as it provided local government with an opportunity to raise key issues for councils well in advance of the 2007 federal election.

"Most importantly, the paper recognises the fact that local government is under severe financial pressure caused by factors such as cost shifting, inadequate support from state and federal governments, demographic change, decaying infrastructure and growing demand for human services," Cr Bell said.

"ALGA has been campaigning long and hard for fair federal funding, fair treatment and formal recognition of local government.

"We acknowledge significant progress made on these issues in recent years and additional support received from the Australian Government through programs such as the $1.2bn Roads to Recovery initiative. But there is still a long way to go. We look to the major parties to address the problems faced by councils and their communities in the lead up to the next election.

"The paper released by Senator Kim Carr canvasses issues of critical importance to local government. These include the need for:

• fair federal funding arrangments for councils through the reform or replacement of financial assistance grants
• assistance to help councils address the infrastructure crisis they face and meet demand for new and upgraded facilities and roads
• measures to stop cost shifting by state and federal govenments to councils, a practice that has an estimated impact on local government of between $500m and $1.1bn each year
• support to meet the challenges of rapid demographic change and an ageing population
• constitutional recognition for local government.

"Senator Carr is raising the prospect of a 'new deal' for local government, offering the possibility of additional Commonwealth funding, particularly through reform of financial assistance grants and infrastructure support. This is a very welcome move.

"The paper says that any effective solution to the problems faced by councils 'requires consideration of the quantum of payments to local government' (Australia's Future Cities, page 58).

"It says alternative models of funding should be considered, including the adoption of alternative indexation models, greater provision of specific purpose payments as well as active collaboration between all spheres of government.

"It also says that Labor is committed to identifying solutions to the problem of cost shifting.

"On the issue of infrastructure, the paper says that Labor 'believes that local government has a role to play in successfully addressing the widening gap between our current infrastructure stock on the one hand and unmet need on the other'.

"It also canvasses an increased role for local government in extending the range and effectiveness of service delivery, with a particular focus on policy areas such as water, home and community care and the need for greater urban amenity.

"But the paper makes it clear Labor has some expectations of local government. It says Labor looks to local government to implement community strengthening strategies, address issues relating to the viability of smaller councils and support Commonwealth urban development initiatives.

"Much thought and work has clearly gone into Senator Carr's discussion paper. We welcome it. We will digest it. We will discuss it with our members. And we will provide a full and comprehensive response in the coming months," Cr Bell said.

Contact:

Cr Paul Bell AM, ALGA President - 0418 791 596

Rohan Greenland, ALGA Public Affairs - 0412 85 9434 / 02 6122 9434