June 16, 2015
Many councils will be forced to consider cutting back essential community services as a result of the 2014-15 Federal Budget’s three-year freeze on indexation of Financial Assistance Grants (FAGs), Mayor Troy Pickard warned today.
Mayor Pichard, the President of the Australian Local Government Association, was speaking to delegates on the second day of the 21st National General Assembly of Local Government in Canberra.
“The Treasurer’s decision in the recent Federal Budget to continue the freeze on indexation of FAGs means the grants will not be increased in line with CPI and population increases until 2017-18,” Mr Pickard said.
“Councils across the country are missing out on an expected $925 million in revenue over the period until 2017-18 that would have otherwise been used to fix community infrastructure and fund crucial services such as parks, swimming pools, libraries, community amenities, and recreation and cultural facilities.
Mayor Pickard warned that if the Federal Government persisted with the FAGs freeze, it would be ordinary Australians who would bear the cost.
“The value of the lost grants to one West Australian council equates to the cost of resealing 23 kilometres of road. Another council in New South Wales has noted that the loss of grants is equal to a cut of 8.8 per cent in rate revenue.
“It is ultimately our communities that will feel the pain of this freeze.
“So on their behalf, and on behalf of the 560 local councils across Australia, the ALGA is renewing its call to the Government to restore indexation of the FAGs as soon as possible.
“The Commonwealth must ensure that our local councils, as an important sphere of government that is closest to the community, have the resources necessary to provide the level of services that every Australian community deserves.”
Last month Deputy Mayor Cr Campbell warned the South Burnett stood to lose almost $2.8 million from its income by the time the freeze was lifted.
He said the loss would be equivalent to a 12.6 per cent reduction in rate revenue.
Cr Campbell said that FAGs grants currently make up 13.1 per cent of the South Burnett Regional Council’s annual income.
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