Australian Local Government Association

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Auslink

4 February 2003

Contents

• Key conclusions
• Executive summary

Key conclusions

ALGA congratulates the government on tackling the need to develop new strategies to address the current and emerging land transport challenges.

ALGA welcomes the commitment to the retention of identified local roads funding.

However, local government's support for AusLink is conditional upon guaranteed secure long term funding for local roads through:

• retention of identified local roads funding, at a level that is at least equivalent to the current (fully indexed) Identified Roads Component of the Financial Assistance Grants; and
• continuation of the Roads to Recovery Program beyond 2005 at least at average annual funding in real terms.

In addition, local government requires:

• specific and identified arrangements to include local government in the AusLink planning and decision making processes, and
• additional Commonwealth funds to meet new elements of AusLink.

ALGA supports the need to establish clear funding mechanisms for the development of regional infrastructure. However, local government is opposed to any mechanism that would mandate the diversion of scarce local government funds for regional transport infrastructure or into a general funding pool.

Development of transparent, accountable and equitable distribution and decision-making arrangements between states/territories, regions, and local government is fundamental to the success of the AusLink framework.

Regional co-operation between local governments for the purpose of the provision of strategic regional infrastructure must be voluntary and build on the significant initiatives already in place.

ALGA recognises that much of the AusLink detail needs to be further developed. ALGA welcomes the opportunity to work collaboratively with the Commonwealth and states/territories on the formulation of these details to meet our mutual needs.

Executive summary

Introduction

ALGA is pleased to make this submission on the AusLink Green Paper in the interests of local government and their communities throughout Australia.

Growth and change in the transport task will place significantly increasing demands on the current transport network, and by inference all infrastructure providers. ALGA thus supports the need to develop new strategies to address the current and emerging land transport challenges.

Comments on the AusLink Green Paper

ALGA supports the broad philosophy and objectives of AusLink. It also concurs with the development of a unified, long-term National Land Transport Plan based on clear national objectives (including agreed regional and local government objectives) and priorities that focus on meeting the major transport challenges facing Australia.

ALGA also agrees that priority should be placed upon integrated networks of land links of strategic importance, including road and rail links and intermodal connections to ports and airports.

It is however, important to recognise that AusLink priorities, planning and funding should clearly differentiate between the national corridors and regional and local networks. Thus, national corridor priorities should not be funded at the expense of local and/or regional priorities. Accordingly, it is vital that additional Commonwealth funding should be provided to meet any new elements of AusLink.

The Green Paper outlines some of the specific challenges that confront local government in meeting existing and future transport demand. In particular, it recognises 'the widening gap between the age and quality of local road infrastructure and the capacity of local government to maintain and replace it' (page 69).

Accordingly, AusLink must guarantee:

• secure long term funding for local roads to meet existing and future transport demands, especially the maintenance backlog; and
• specific and identified arrangements to include local government in the AusLink planning and decision making processes.

ALGA sees it as essential that Commonwealth funding support to local government be continued beyond June 2005, at a level that is at least equivalent to the current (fully indexed) Identified Roads Component of the Financial Assistance Grants and the average annual funding of Roads to Recovery (2001 - 2005).

ALGA notes the 'earmarking' of regional funding proposal, although considerable work is still needed on distribution methodologies, decision-making processes and equity considerations between states, regions and local government areas.

ALGA also acknowledges the Commonwealth's interest in supporting regional arrangements. Local government would welcome this, provided that Commonwealth support builds upon the significant local initiatives already in place. Regional arrangements between local government areas must be voluntary, locally-driven processes to meet individual communities' needs and not mandated regional arrangements.

At this stage, there is still considerable ambiguity, complexity and uncertainty in the Green Paper's coverage of both the funding options and 'regional' approaches. There is a strong need to clarify definitions, nomenclature and data in these areas. ALGA is willing to work collaboratively with the Commonwealth and state/territories to further such matters.

Local Government Transport Needs

Local government is responsible for around 80 per cent of Australia's roads (by length). It collectively provides and maintains infrastructure worth more than $106 billion in 2000 - 01. The Green Paper notes that in 1997 - 98¹ local government's investment in the local road network was $2 billion.

Expenditure in 2002 on maintenance of local roads is estimated at $2.46 billion and the estimated total funding need for local roads in the long term is estimated at $4.14 billion p.a.²

Infrastructure studies for Victoria and South Australia³ identified an increasing renewal liability for local government's infrastructure assets. On the basis of this work, the present shortfall addressed by the Roads to Recovery Program is forecast to increase by a factor of three to four in 20 years.

The local road network is a core component of the national land transport infrastructure network, with most journeys using local roads to a substantial degree. The Green Paper recognizes that '...all communities depend on land transport to provide economic and social connectivity...' and '... Local government has a challenging responsibility to ensure local communities and industries are connected to the broader regional and national transport networks'.

Local government acknowledges and greatly values the Commonwealth's essential support to local government for the provision and maintenance of local roads. Over the period 2000 to 2005 annual average Commonwealth assistance to local government for local roads (comprising $423m in Identified Roads Component of the Financial Assistance Grants and $232m in Roads to Recovery) is estimated to be equivalent to 12.8% of total local government roads expenditure.⁴

However, it is of extreme concern that Commonwealth assistance to local government through Roads to Recovery is not secure beyond June 2005. Roads to Recovery is acclaimed by local government as one of the most successful and welcomed Commonwealth initiatives in recent times. ALGA and the Commonwealth have recently completed a review of Roads to Recovery which clearly demonstrates the success of the program.

In conclusion, local government will be pleased to work in partnership with the Commonwealth and states/territories in the development of an effective strategy to secure improved, properly funded, transport outcomes for all Australians.

Download the Auslink submission [PDF 317 KB]

For more information about the ALGA AusLink Submission, contact Robin Anderson at ALGA.