Speeches: 2004
National local government priorities in 2004 - LGAT
And I spoke of the need to renew the Roads to Recovery campaign and continue federal government support for the 640,000 km of the Australian road network that is owned and maintained by local government. We'll I'm pleased to be here to report progress on these and other issues of concern to local government and the communities we serve. There has - of course - also been much movement on the roads front.
Address to LGAT Annual Conference
Councillor Mike Montgomery
President, Australian Local Government Association
14 May 2004: Hobart
The challenge ahead
- LGAT President, Councillor Lynn Mason
- Executive Members
- Delegates
Twelve months ago, I stood before you to outline ALGA's priorities for the year ahead. In particular, I outlined ALGA's top two priorities.
I spoke of the failure of the Australian Government to enter into a genuine partnership with local government and the need to reform federal - local government financial relations.
And I spoke of the need to renew the Roads to Recovery campaign and continue federal government support for the 640,000 km of the Australian road network that is owned and maintained by local government.
We'll I'm pleased to be here to report progress on these and other issues of concern to local government and the communities we serve.
There has - of course - also been much movement on the roads front.
In January, the Deputy Prime Minister, John Anderson, announced the renewal of the Roads to Recovery program after a long and sustained lobbying campaign by local government.
Funding of $300m a year for the renewed program - to commence in July next year - was also confirmed in Tuesday's Budget.
Roads to Recovery is an outstanding example of a federal - local government partnership, producing real and lasting benefits for all Australians, from our city centres to remote communities.
I'd like to thank LGAT and all Tasmanian councils for your participation in the renewal campaign. It means a further $1.2 billion will be allocated to councils to address the backlog of maintenance work.
It is a program that does great credit to local government and great credit to the Australian Government in general and John Anderson in particular.
As you know, the renewed program will encompass some changes. Of the $300m allocated to councils each year, $200m of will be paid in the same way as occurs with the current program. The remaining $100m will be allocated to local government for projects of regional importance. The details of how this will operate are yet to be finalised by Ministers Anderson and Campbell, though ALGA will be having a further meeting with their officials later this month.
Now to the reform of financial relations. Since we last met, there have been very substantial developments.
Most importantly, the Hawker inquiry into cost shifting was brought down in Federal Parliament during the National General Assembly last November.
The full title of that report is, of course, Rates and Taxes: A Fair Share for responsible local government.
Both the title and the substance of the report reflect our case for an end to cost shifting through the development of intergovernmental agreements and the development of a better funding deal for local government to be achieved under the auspices of the Council of Australian Governments.
Importantly, the report recommended that COAG convene a summit during 2005 to review the responsibilities of each sphere of government and to ensure that these functions were appropriately funded.
The recommendations amounted to a review of the way our federation operates. The recommendations are ambitious and will require a great deal of good will from all jurisdictions across all spheres of government.
The path ahead is difficult and could be easily derailed.
What local government needs are champions at the federal and state level, willing to take on the task of reform to put local government on a stable and viable financial footing to help us face the future with certainty and confidence.
So, how are we travelling six months down the track?
Well, we're past first base. The Australian Government established a task force to respond to the Fair Share report.
The state and territory local government ministers agreed to place submissions with the Federal Minister for Local Government, though few have met the target of lodging these by early March.
The next critical date will be June 10th when ALGA and state local government leaders meet with the federal and state ministers at a round table in Canberra.
This will be an important meeting. If some consensus on the way forward can be achieved, we can move forward.
To date, the Federal Minister has been a strong supporter of reform. He has shown enthusiasm and determination to drive the reform agenda.
But I am yet to see the same level of enthusiasm displayed by all state jurisdictions.
If the states show reluctance to achieve meaningful change, the federal government may well have a pretext for throwing their hands in the air and saying - well, we tried but the states wouldn't be in it.
That's something we must avoid at all costs.
Of course, advancing the case for a better deal for local government must also take place at the highest level of inter-government relations - COAG.
I have this week written to the Prime Minister, Premiers and Chief Ministers to flag the importance of this agenda and the need to have placed firmly on the COAG agenda for next year.
It is an issue I will also raise in person when COAG meets in Canberra on June 25th.
There are some further complicating factors. One is the coming federal election. Another is the obvious political divide between the Labor administrations in all states and territories lined up against the Coalition in Canberra.
There is the possibility, however, that these may ultimately work in our favour.
My guess is that we will see little significant public progress until after the federal election.
In the meantime, we in local government must keep our eyes on the prize. We must do all we can to keep the key stakeholders focussed on our ultimate objectives - measures to eliminate cost shifting and achieving a better federal funding deal giving us access to a fair share of national taxation revenue.
Local government has been under funded, under resourced and under valued for far too long.
The Fair Share report offers us a way forward.
Let's hope that there is genuine good will on behalf of all parties to see that much needed change does indeed take place, as recommended by all members of the Hawker inquiry.
In the few minutes I have left, I'd like to quickly look at other aspects of Tuesday's Federal Budget.
Local government was a big winner in transport terms. As I mentioned earlier, funding was confirmed for Roads to Recovery Mark II - or R2R2 as it is now dubbed. Importantly, Labor has also committed to introducing a Roads to Recovery style program, particularly now the money is - so to speak - in the bank.
The Budget also confirmed allocation of the $810m committed earlier this year to AusLink regional transport projects.
There is also additional funding for AusLink of more than $1.1 billion to be allocated over a five year period.
While we will have to wait until June 7th to see the full details of how AusLink will operate, we are pleased to see that two of ALGA's key objectives for AusLink have been met:
- Roads to Recovery funding has been quarantined from the AusLink bucket;
- And there is to be additional, separately identified funding for the AusLink program.
Last year, I spoke to you of the need for any new security arrangements for regional airports to be met by the Australian Government and not passed on to local government.
ALGA directly lobbied John Anderson on this issue and I was delighted to find - as I poured through the fine print on Tuesday night - a commitment to do just this.
A further $21m has been allocated for regional airport security, more than doubling the $14m allocated in December. This means that the capital costs of upgrading regional airports will no longer be done on a 50-50 basis with airport owners and operators, but will be fully met by the Commonwealth.
There is also additional funding in the Federal Budget of $77 million over four years for the Regional Partnerships program.
The expanded program is designed to address some of the recommendations of the Regional Business Action Plan to improve access for regional businesses to finance and capital.
Importantly, the Budget renews the National Strategy for An Ageing Australia and provides a considerable boost for aged care accommodation and child care, including funding additional family day care places.
The aged care initiatives are important. ALGA is working with the Minister for Ageing, Julie Bishop, on issues of demographic change and we look forward to further developing this partnership to assist councils meet the challenges and opportunities presented by an ageing population.
The Budget also funds a new $20m community safety grant program and renews the Regional Arts Fund with funding of more than $10m provided over the next four years.
Measures for the environment announced in the Budget that will benefit local communities include:
- the extension of the Natural Heritage Trust to 2007-08 adding $300m to the program;
- the extension of the National Landcare Program for two more years to 2007-08; and
- additional funding for greenhouse gas emission programs.
Part of the additional funding for greenhouse programs will - if I can quote Environment Minister David Kemp - "reinforce the enthusiasm of local governments and communities through building on local initiatives such as the Cities for Climate Protection, Cool Communities and Travel Demand Management programs".
And here I'd like to pay tribute to the work of your President, Councillor Lynn Mason, who has so very ably represented the interests and concerns of local government on environmental and NRM issues at the national and international level.
Our standing with the federal government on these issues has never been higher and much of this is due to the hard work and diligence of Cr Mason.
I'd like to finish by reflecting on both the Federal Budget and our core goal - achieving a fair share of national taxation revenue.
In his Budget address on Tuesday night, the Treasurer said the outlook for the Australian economy is for continued growth, with increasing employment and low inflation.
He said - and I quote - "The combination of strong growth, low inflation and low unemployment puts Australia at the forefront of the economies of the developed world."
With such a strong economy, with such strong prospects for the future, surely now is the time to drive forward with the unfinished business of the tax reform agenda - giving local government the same deal given to the states under the new tax system - doing away with the archaic system of financial assistance grants and replacing it with access to a fair share of national taxation revenue.
There should now be no impediment for freeing local government from its fiscal shackles and giving councils a fair go. Our communities deserve nothing less.
Thank you.
Cr Mike Montgomery
May 14, 2004
Hobart
