Keith Campbell
June 22, 2016
The Federal Opposition will restore the indexation of Financial Assistance Grants (FAGs) from July 2017 if it wins Government at the July 2 Federal election.
Shadow Minister for Regional Development and Local Government Julie Collins made the promise to the National Assembly of Local Government conference in Canberra on Wednesday, which is being attended by South Burnett Mayor Keith Campbell and Deputy Mayor Kathy Duff.
The announcement was welcomed by the Australian Local Government Association (ALGA), which has called for a clear commitment from all parties to put an end to the three-year FAGs freeze introduced in the 2014-15 Federal budget.
“We are pleased the Opposition has provided the certainty called for by the sector on restoring indexation of FAGs,” ALGA President Mayor Troy Pickard said.
“The three-year pause on FAGs indexation was unexpected and continues to have a severe impact.
“Having certainty on the indexation of this untied funding will ensure that local councils have the resources necessary to fix local community infrastructure and fund crucial community services such as parks, swimming pools, libraries, community amenities, and recreation and cultural facilities.”
The ALGA also welcomed the Labor party’s commitment to reestablish the Australian Council of Local Government (ACLG), which provides an important direct engagement between local and Federal government.
“The ACLG will ensure that councils have direct dialogue with the Prime Minister and Cabinet on issues of national importance and will strengthen the partnership between both levels of government,” Mr Pickard said.
“The forum will be an opportunity to address issues around the sustainability and certainty of local government funding.”
Ms Collins also highlighted the Opposition’s commitment to a Regional Innovation Fund, which would focus on expanding the role of regions to establish self-sustaining innovation hubs, and funding to encourage the active participation of women in local government.
South Burnett Mayor Keith Campbell was a fierce critic of the FAGs freeze, which came about after the region’s funding was unexpectedly cut by $1.4 million in 2012.
In May last year he estimated the FAGs freeze would cost the region a further $2.8 million.
He said this was equivalent to a 12.6 per cent rate increase over three years “just to make up the difference”.
At present, FAGs grants make up around 13 per cent of the South Burnett Regional Council’s annual income.
- Related article: Council Joins Grant Freeze Fight
