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Federal Government urged to reform funding to local government

FEDERAL GOVERNMENT URGED TO REFORM FUNDING TO LOCAL GOVERNMENT

Northern Territory Local Government Association President Alderman Kerry Moir today supported the call by Australian Local Government Association President Cr Paul Bell for the Australian Government to use part of its large surplus to reform and increase funding for local government infrastructure. (see attached)

“Cost shifting by federal and state and territory governments onto local government has an estimated impact of between $500m to $1.1 billion”, said Alderman Moir. “In the meantime we have seen financial assistance grants drop from nearly 1.2% of total Commonwealth revenue in 1993/94 to 0.8% today and it is continuing to fall”.

“On top of that the outdated per capita formulae for providing financial assistance grants to local government discriminates against the smaller states, particularly the Northern Territory and any change to this current system would have to benefit the Northern Territory”, Alderman Moir said.

“When you have a situation where the Croydon Council (population 287) in North Queensland receives $1,378,972 and the Tapatjatjaka Council (population 288) south of Alice Springs in the NT receives $34,624 you have to question a system that delivers such inequitable outcomes”, Aldermam Moir stated.

“This inequitable funding of councils across Australia is something that needs to be addressed with any new system” said Alderman Moir.

Ends

3 January 2006

Contact: LGANT President Alderman Kerry Moir 0419 303 378

LGANT CEO Tony Tapsell 8936 2888