Two Wide Bay Burnett region mayors appeared before an Australian Government inquiry last week to speak against federal funding shifts which place an unfair burden on regional ratepayers.
The House of Representatives Committee on Regional Development, Infrastructure and Transport held the public hearing in Brisbane as part of its inquiry into local government funding.
The submission, presented by the Bundaberg and Fraser Coast mayors on behalf of the Wide Bay Burnett Regional Organisation of Councils (WBBROC), highlights the challenges regional councils face in funding essential services and infrastructure for their communities.
Local governments deliver many of the services which residents rely upon each day and yet they are receiving just 3% of total taxation revenue.
Financial Assistance Grants are one key source of Federal Government funding for Councils however between 2021 and now the Wide Bay Burnett region has had this funding cut by $5,858,158.
WBBROC Chair and Bundaberg Region Mayor Helen Blackburn said Councils were reliant on grants to maintain financial sustainability and those funds were not only decreasing but they were also uncertain.
“Councils – and by extension the communities they represent – cannot keep taking hit, after hit, after hit,” Mayor Blackburn said.
“We are always grateful for every dollar of funding support we receive from other levels of government but without untied, guaranteed funding Councils are planning for the future of their communities with one hand tied behind their backs.
“If we can’t rely on the availability and timing of grant funding, or if this grant funding from other levels of government continues to decrease, Councils will become more and more reliant on rates rises to continue to meet the needs of their communities.
“This is an unfair share of the burden for ratepayers to hold.
“Investing in local infrastructure is essential. It ensures roads are safe, water and sewerage networks are reliable and parks and community facilities continue to meet the needs of families and businesses.”
Fraser Coast Mayor George Seymour said councils were under increasing pressure to maintain roads, water, waste services, parks and community facilities while also supporting growth.
“Regional councils like ours are expected to deliver more services for growing communities, yet funding from the Australian Government hasn’t kept pace with the responsibility we carry,” Cr Seymour said.
“We are asking for greater and more flexible federal funding, including untied Financial Assistance Grants and support for major infrastructure projects, so we can maintain essential services and plan for the future.”
The WBBROC submission highlights:
• How Local Governments rely on grant funding and the financial impacts of the current funding structure and availability; and
• The need for Local Government to be appropriately funded for historical cost shifting from other levels of government. Any further cost shifting (including policy and legislation amendments impacting councils) must be adequately discussed and negotiated.
That’s why WBBROC is calling for:
• Targeted funding for essential regional infrastructure, including water, roads, and community facilities;
• Simplified and streamlined funding programs that allow councils to deliver projects efficiently and identify the priority purpose for those grants;
• Restoring untied Financial Assistance Grants to at least 1% of Commonwealth taxation revenue to provide long-term financial certainty for local governments and the communities they serve; and
• Fairer Disaster Recovery Funding Arrangements including maintaining the Federal Government contribution at 75%, a simplified and improved approval processes and earlier access to disaster funding. Further, resilience and betterment funding must be provided to ensure the WBBROC region is better equipped to deal with future events. Actions taken ahead of known disaster events to protect local communities, infrastructure and the environment should be appropriately funded.
The case for the Wide Bay Burnett was put forward alongside submissions from the Department of Local Government and Local Government Association of Queensland.
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