Speeches: 2005
6th National Local Roads and Transport Congress
… Since we first met in Moree in the year 2000, the National Local Roads Congress has been a fighting forum for transport needs of local communities. We first came together to find a way forward to address the massive maintenance backlog facing councils across the country. We did our homework, we developed a plan, we lobbied hard, and most importantly, we got a result. …
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President's address to the 6th National Local Roads and Transport Congress
Councillor Paul Bell AM
President, Australian Local Government Association
4 July 2005, Launceston
- Mayor of Launceston, Janie Dickenson
- Deputy Prime Minister John Anderson
- President of the Local Government Association of Tasmania, Lynn Mason
- Fellow delegates
Since we first met in Moree in the year 2000, the National Local Roads Congress has been a fighting forum for transport needs of local communities. We first came together to find a way forward to address the massive maintenance backlog facing councils across the country. We did our homework, we developed a plan, we lobbied hard, and most importantly, we got a result.
That result is Roads to Recovery - a program that has delivered $1.2 billion in federal funding for local government over the past four years. And - as from last Friday - it will deliver another $1.2 billion over the coming four years.
In addition, a further $120 million has been allocated for regional transport projects, $30m for roads in unincorporated areas and $90 million to extend the Black Spot road safety program.
Roads to Recovery is an outstanding example of an effective Commonwealth - local government partnership. It is producing very real and tangible results for Australian communities. It is replacing dangerous bridges and upgrading intersections. It is repairing roads and improving traffic flows. It is boosting economic development, creating employment and improving the lives of countless Australians through 14,000 projects from our city centres to remote communities. And here I pay tribute to the Deputy Prime Minister, John Anderson. Roads to Recovery is very much his baby.
From a local government perspective, we had a minister we could really work with. He listened. He understood. He delivered. And as he leaves the front bench for "cockies corner", he can take enormous pride in what he has achieved. Every single Roads to Recovery sign - and let's face it - they're everywhere - every single sign on every single project is a monument to John Anderson's commitment to the transport needs of our communities. A commitment that is delivering more than two and a half billion dollars for local roads. This is a magnificent legacy.
I might also take this opportunity to thank the Deputy Prime Minister for a wide range of other important initiatives that have been of immense importance to local government. From the National Water Initiative to regional development, telecommunications to aviation security - John Anderson has made a considerable difference to us all. Your work has been important. It is of enduring value. And we thank you for it.
As we know, local roads are a critical part of Australia's road system. They provide access to farms and factories, homes and hospitals, shops and schools, families and friends. All up, local government maintains around 680,000km of roads. It's a $75 billion asset accounting for almost 85% of all Australian roads, only a third of which are sealed. We also maintain 29,000 timber bridges, of which one third are more than 50 years old and beyond their useful life. This is an enormous task which places a massive demand on the scarce resources of Australia's councils. Local road spending consumes a large chunk of council expenditure - around 20 to 25 per cent of the average council budget.
While Roads to Recovery is a critically important source of funding, we are still falling behind. The gap between what we need to spend on our roads to keep them in fit-for-purpose condition and what we can afford to spend is still - even with Roads to Recovery factored in - $344 million a year. This amounts to a full eight per cent of the $3.8 billion spent on local roads each year. In effect, Roads to Recovery is still only slowing the decline of local roads.
With Roads to Recovery bedded down for four more years, now is the time to think more broadly and plan our future transport strategy. And that - in a nutshell - is our task over the coming two days.
There are a number of challenges. I'd like to break them down into one over-arching theme with three key components. First, we need to look at funding for our local road and transport needs. Then we need to drill down and examine a series of issues including:
- regional transport
- sustainable and urban transport issues, including congestion, public transport, noise and pollution
- asset management
Getting our policy platform together is an important task for local government. We have some breathing space and we must use it effectively. As we move toward the next federal election - likely to take place in 2007 - we must build and present our case to the major parties.
Importantly, we have new players on the federal scene. Very soon, we will have a new minister for transport and regional services. We will - of course - continue our close working relationship with the Minister for Local Government and Roads, Jim Lloyd. And last Friday, we welcomed Senator Kerry O'Brien as Labor's new transport spokesman and Senator Kim Carr as the shadow minister for local government. We look forward to working with them as we consider a future local government transport strategy.
The Australian Government has - to some extent - already started the ball rolling. Last month, Jim Lloyd tabled the latest edition of the local government national report. It says that the $344 million gap could be bridged in many ways - for example - additional funding, improved productivity and redirecting spending from new roads to maintenance. But it then goes on to flag the development of - and I quote - "a possible national local government roads strategy".
It suggests a 10-point approach to addressing the gap, saying it should be done by 2008-09. No coincidence that this is the final year of Roads to Recovery Mark Two. And no coincidence that additional federal funding didn't make it to the list. Nor does it address the broader transport issues that concerns local government. I think we are being sent a subtle message - if we don't come up with a strategy to bridge the gap - one may well be imposed upon us.
To me, the challenge is clear. We need to develop a broad strategy where we all make a strong and concerted effort to tackle the problem in a comprehensive and focused way. It's not about hand-outs - it's about collaboration and effective partnerships delivering results on the ground. In the long run, our key transport issues will best be addressed through two strategies. Fair funding, fair treatment, formal recognition
First, there must be broad reform of the financial relationship between federal and local government. We need to remind both state and federal governments that local government is still getting a raw deal when it comes to the distribution of tax revenue. Local government remains the victim of a federal system that is loaded against us.
The federal government - much as we love it - collects the bulk of national taxation revenue. It is their job to ensure its fair distribution so that each sphere of government is given the means to carry out its functions. While the states have now gained access to growth funding, through the GST, local government remains tied to a system of financial assistance grants that simply don't grow in real terms.
ALGA is arguing for three things - fair funding, fair treatment and formal recognition. To achieve fair funding, we need to replace the system of financial assistance grants with access to a 1% share of national taxation revenue. This means funding which grows as the economy grows, strengthening our capacity to address our pressing transport needs. To achieve fair treatment, we need a meaningful intergovernmental agreement which will put an end to cost shifting - a practice that robs local government of between $500m and $1.1 billion each and every year. To achieve formal recognition, we need constitutional recognition. This will help ensure we are treated as a valued and equal partner within the Australian Federation. In addition to these broad reforms, we need to grow our partnership with the federal government to deliver the best possible transport outcomes for local communities.
Issues for discussion
Over the next two days, we must explore options for the future. We need to ask ourselves, can we achieve Roads to Recovery Mark Three? What form should it take? Can it grow to help cover the gap?
How can we best demonstrate the value of Roads to Recovery by using the funding effectively and with good accountability?
Is it possible to use Commonwealth assistance as a lever to grow the funding cake? If so, how?
What is the scope for increased joint-purchasing and resource-sharing among councils?
Are Public Private Partnerships an opportunity, a threat, or both?
How can we use technology to drive our dollar further?
What results will asset management initiatives - like ALGA's National Local Roads Database System - make at the local level?
We have another task to complete during the course of the Congress, and that reflects our theme - Unifying local government's transport agenda. Our symposia sessions examine the two halves of our transport agenda - one focused on urban issues, the other on regional challenges. The urban sessions will examine the management of transport demand and congestion, noise and safety issues and the pressure they place on residential amenity. The regional sessions will in turn examine country transport services and the movement of freight.
Urban transport
Urban transport issues are increasingly important at the national level. While the Australian Government currently sees these as largely state issues, there is a strong case for strategic national initiatives that can add significant value in our urban centres. As Australia's transport systems increasingly compete for public funding, all levels of government need to find ways to make these systems more sustainable - in economic, social and environmental terms. Within cities, 'density' causes problems of congestion, noise and pollution. In regional and rural areas, 'distance' is the issue, and long distance public transport services - whether coach, rail, air or shipping - must meet basic community needs and be both economically and socially sustainable.
ALGA recognises the very considerable contribution the Roads to Recovery program has made to improve the sustainability of the local road network. However, the benefits of this infrastructure-upgrading program can be multiplied by complementary changes in travel behaviour - especially by encouraging alternatives to car use. This would help make local transport more sustainable in both supply and demand terms.
We believe the Australian Government is in a unique position to promote, co-ordinate and disseminate information on sustainable transport initiatives across all levels of government. While the state and territory governments will need to take the lead on larger programs, many beneficial changes in transport use, such as ride sharing, multi-purpose trips and more walking and cycling, are better promoted at the local community level.
ALGA would like to see national assistance for sustainable transport, including funding for a pilot program of transport initiatives at the local government level. A program of just $5 million or $10 million over four years - for example - would allow consideration of key issues such as integrated land use and transport planning, traffic congestion, safety, travel demand management and accessible transport. Such a move would be in keeping with the recent Productivity Commission recommendation for a national review of freight and passenger transport.
Sustaining regional transport services
The regional symposia will - among other things - focus on country transport services. One aspect of this will be regional aviation. Local government maintains nearly 200 regional airports. Regional aviation provides essential social and economic links for non-metropolitan Australia.
Regular, accessible, affordable and viable air services are a vital factor in regional development. Country communities with air services show economic growth nearly twice that exhibited by those without them. Regional aviation is also a key element in equity of access for many country people, and can be a matter of life and death in rural and remote areas. As you might expect, we took a keen interest in the work of the parliamentary inquiry into regional aviation. It released its report - Making Ends Meet - in December 2003.
The report provides powerful arguments for better resourcing and federal assistance for local government owned regional airports. I believe the Australian Government will respond to the report in the very near future. I acknowledge the considerable work undertaken by the Australian Government to support regional aviation, particularly through assistance to regional airlines and through additional funding to assist regional airports with new security requirements. However, we encourage the Government to implement key recommendations of the report including the call for the introduction of a better regional airport subsidy scheme.
Revenue
Revenue is another area that needs our attention. We must gain access to fair cost recovery arrangements. Two examples spring to mind. Cost recovery for the impact of heavy vehicles is an issue of growing importance to local government. As technology improves, cost recovery will become much more tightly targeted by vehicle type and use.
In setting future heavy vehicle pricing systems, better account must be taken of the level of truck use on local roads. We want access to cost-recovery revenue so we can fix the damage caused by heavy vehicles to local roads. This could be done in a variety of ways. For example, by assessing the damage to road infrastructure or the impact on environmental and residential amenity.
Significant challenges also lie in areas where grain movement is switching from rail to road. This is particularly true in New South Wales, Western Australia and South Australia. There needs to be much better recognition of the consequences of these changes and compensation must be paid to councils for the resulting damage to local roads.
AusLink
During the course of the Congress, we will also hear a great deal about AusLink. AusLink outlines the Australian Government's long-term vision for a national land transport strategy. This, in turn, sets the framework for investment and operation of surface transport modes to a far greater extent than in the past. In reflecting the Australian Government's national economic concerns, AusLink places considerable emphasis on major national and international transport logistics needs, with long-term investment based on national network and corridor studies.
The initial AusLink investment program was announced in this year's Federal Budget. It provides $11.8 billion for road and rail construction and maintenance for the coming five years. ALGA has applauded the ideals that underpin the AusLink initiative. The program has many strengths. But in the context of this general support, there are issues we would like to see further explored. I'll cover three of them.
First, there is some concern that AusLink will gradually shift funding responsibility for maintenance of the national highway to the states and territories, at a time when many of these roads are reaching the end of their design life.
Second, there is also concern that AusLink is freight-focused and unfairly neglects urban public transport needs.
My third point concerns the strategic regional component of AusLink. ALGA very much appreciates the Australian Government's decision to provide additional funding to cover the strategic regional component of AusLink.
We acknowledge the additional $120m provided for these strategic projects. But we also know that a great deal of interest was generated by the announcement that additional funding would be available on a competitive basis. We encourage the Government to consider local government's willingness to work together to develop regional road projects and ask it to provide additional funding to boost the funding available for this purpose. We have suggested an additional $250m would be a sound and worthy investment.
Road safety
During the course of the Congress we will hear about the critical issue of road safety. One of the reasons Australia has been significantly reducing road trauma over the past 30 years, is that the public perception of road safety is changing. Road safety is no longer seen as a purely 'transport problem' - but also as a preventable community health issue. With this increasing community focus, local government is now playing a key role in road safety.
Local roads are a vital component of the 'residential amenity' of our neighbourhoods - and a crucial part of this amenity is safety. But the pressure on our roads - and on safety - is increasing at a dramatic pace. By 2020, Australia's total freight task will almost double; urban passenger trips will increase by about a third; and non-urban passenger travel could rise by 70 per cent. This will place much greater demands on local transport infrastructure and the safety margins of our road system. To manage this challenge, local government must be a key partner in the efficient and effective planning, funding and delivery of road services.
The Roads to Recovery and Black Spot programs are excellent examples of federal and local government partnerships which are providing direct road safety benefits to our community. Increased safety has been a major outcome of the more than 14,000 Roads to Recovery projects. Improving the surface condition, width and alignment of many local roads, upgrading dangerous intersections and better signage, all make a real difference to road safety in our community. Investment in local roads is investment in human life.
Summary
Fellow delegates. I have this morning outlined some of the challenges we face as we work together over the next two days. In particular, we need to focus on a comprehensive transport strategy for local government that will meet the needs of our communities through the 21st century. I think we need to keep four key elements in mind:
- long-term certainty for local road funding
- strengthening federal partnerships to address areas of specific need
- greater federal involvement in sustainable transport
- assistance to build local government capacity in data and asset management.
We have a strong and growing partnership with the Australian Government. We need to build on this partnership and work with them to ensure we can continue to do what we do best - serve the needs of local communities. We also need to work towards uniting our urban and regional transport agendas. When we work together, when we are united and focused, we can achieve real, meaningful and lasting change for our communities. The end of the day, local government is like a herd of elephants. When we're united, when we're focused, when we're heading in the same direction, we're absolutely unstoppable.
Enjoy the Congress.
Cr Paul Bell AM
Australian Local Government Association
4 July 2005
Launceston, Tasmania
