Image: Jim Forest
As the 2016 federal election looms, Victorian councils are calling on political parties to commit to eight priorities that invest in local roads, community infrastructure, and services for children and older people.
Municipal Association of Victoria (MAV) President Bill McArthur said local government’s plan for investment in local roads and facilities could deliver tangible benefits to all communities.
“Party leaders have been sent our list of six priorities identified by local government nationally, plus two Victorian local government requests to continue federal funding for kindergartens and aged care programs.
“Local government collects just 3.6 per cent of all taxes nationally, yet its small budgets are responsible for maintaining $354 billion in local roads, facilities and infrastructure relied upon by communities every day.
“Core financial assistance grants provided by the Commonwealth to local government have not been indexed for three years, representing an estimated loss of $118 million to Victorian council budgets, Cr McArthur said.
MAV wants the incoming government to restore indexation in 2017 and increase the total quantum of financial assistance grants to at least one per cent of Commonwealth taxation.
“Local roads make up 75 per cent of the entire national road network and are a huge cost for councils to maintain and upgrade,” he said. “Commonwealth Roads to Recovery funding will provide $163.8 million to Victorian councils this year, with a total investment exceeding $1.4 billion since the program first began in 2001.
“The base funding has been around $71 million for Victorian councils, but additional funding was committed by the Commonwealth over three years using funds generated from the reintroduction of fuel excise.
“This has been a welcome additional investment into our local roads, and we’re calling for the Roads to Recovery funding to be permanently doubled in the Federal Budget to improve road safety outcomes, Cr McArthur said.
The six federal election priorities identified by the Australian Local Government Association (ALGA) in consultation with the MAV and its other state association members were:
1. Restore indexation for financial assistance grants
2. Increase the quantum of financial assistance grants to at least one per cent of Commonwealth taxation (a rise from $2.3 billion to at least $3.8 billion a year)
3. A national freight strategy, including a local government higher productivity investment plan providing $200 million a year for five years to boost productivity
4. Permanent doubling of Roads to Recovery funding (to at least $700 million a year) from 2017
5. A community infrastructure fund providing $300 million a year for four years
6. $100 million over four years to help councils implement local climate change plans.
The additional two priorities are federal matters that significantly affect all Victorian councils and have been identified through MAV’s strategic plan:
7. Ensure the Commonwealth’s contribution to 15 hours universal access preschool program is no longer subject to short-term agreements and that enduring funding is provided in the Federal Budget to give certainty to councils, kindergartens and families.
8. Honour the signed Commonwealth-Victorian Government Transition Plan to ensure the continuation of home and community care services and block funding for councils until at least 2019.
