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Council funding under the microscope

SWAN Hill Rural City Council has welcomed a parliamentary inquiry which will delve into government funding and service delivery.

The inquiry will look into cost shifting from state and federal governments, and the ability of local governments to meet core service delivery objectives.

It will also examine local government’s revenue structure, while considering any alternative models of funding.

School crossing supervision, maternal and child health, libraries, social housing, road network projects, urban stormwater, climate change response and mitigations and disaster response and recovery are some of the issues which will be examined as part of the inquiry, which was initiated by the Liberals and Nationals, despite strong opposition from the Andrews Government, Animal Justice Party and Legalise Cannabis Party.

Leader of the Nationals and Shadow Minister for Local Government Peter Walsh said the inquiry would produce a report aimed at providing constructive advice to the government on building a “more sustainable future for Victoria’s local councils”.

“It’s about more than just looking at council rates, we have to go back to square one and examine the entire funding model for local government,” Mr Walsh said.

“We need to look at what affects council’s ability to manage core responsibilities like rubbish collection, road maintenance, footpaths and libraries.

“Victorians are fed up with Labor shifting costs onto local government and forcing ratepayers to pick up the tab.”

Member for Northern Victoria, Gaelle Broad said her electorate covered almost half of the state with 27 local councils in the region.

“I have met with many Councils across the region, and between state and local government, it’s not always clear who pays for what, and how much each should pay,” Ms Broad said.

“This inquiry will provide an important opportunity for feedback – to examine what is working well and what can be done better.”

At a local level, Swan Hill Rural City Council mayor Les McPhee said the inquiry would explore whether the current approach was sustainable and appropriate, or whether or not a more suitable, alternative model could be determined.

“Council feels it is important to identify gaps in funding for council services and programs to ensure adequate service delivery, and to recognise that in some areas, communities have been deprived of services because of resource constraints imposed on councils, in the current environment,” Cr McPhee said.

“The Inquiry will look at how councils are delivering on services such as infrastructure – roads, footpaths, and drainage, through to human services – like early years and aged care.

“Council is seeking a transparency in relation to State Government initiatives that are imposed onto our Council and the funds provided, or not, with those transfers of responsibility,” Cr McPhee said.

“Greater reporting and budgeting requirements would enable better record keeping for these initiatives.”

Cr McPhee said the inquiry would provide an insightful approach into the responsibilities of all levels of government.

“Ratepayers see Councils undertaking a lot of action, which is required by the state and paid for through ratepayers,” Cr McPhee said.

“Councils should be able to list this work as a compliance item with the associated cost without perception of political statement about the State Government of the day.”

The Economy and Infrastructure Committee of the Legislative Council will complete the inquiry and deliver recommendations to the government by July, 2024.

As part of the process, Councils and community members are encouraged to make submissions to the inquiry.

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