Commonwealth funding reform needed to help ‘grassroots’ local governments

Local government leaders have used a national congress in Margaret River to renew calls for a major overhaul of how the Federal Government funds the sector.

A parliamentary inquiry into local government sustainability earlier this year had already received submissions from council chiefs across Australia who said support levels had plunged to historic lows.

While this week’s National Local Roads, Transport and Infrastructure Congress was told funding levels continued to grow in other levels of government, the nation’s councils were struggling to fund competing priorities.

At the same time, local government “bore the brunt” of population growth, tourism and demand for infrastructure and services, according to Shire of Augusta-Margaret River president Julia Meldrum.

Special guest, Senator Bridget McKenzie, agreed saying local governments were under pressure to build infrastructure and fix roads without adequate Commonwealth support.

“You are at the coalface of all of these problems,” she said.

Other speakers, including WA Local Government Association president Karen Chappel and Australian Local Government Association president Matt Burnett, backed those remarks.

Delegates were told local government responsibility for vast road networks was underserved due to competing priorities and a lack of funding, according to Cr Burnett.

“Improving our local roads and reducing our country’s highly unacceptable road toll is our highest priority,” he said.

“We need serious funding, not just pocket money.”

A sore point throughout the two-day conference was chatter from delegates unhappy with the increasing complexity of Commonwealth grant application processes.

Delegates overwhelmingly called for more formula-based allocations such as in the Local Roads and Community Infrastructure Fund, introduced during the pandemic, and which winds up next year.

The LRCIF was “a breath of fresh air”, some pundits noted, allocating funds to all Australian local governments based on size without any application process.

One insider who asked not to be named said grant applications cost some local governments up to $50,000 because business cases and feasibility studies were needed to argue for the money.

In many instances, this leads to ratepayers funding expensive consultants needed to find an angle to drive up the potential for grant projects, the local government veteran said.

Ms Meldrum said a lack of investment in infrastructure left local governments to go it alone.

“We want to be proactive and visionary in how we approach that growth, and that starts with collaboration,” she said.

“It (growth) has put tremendous pressure on our infrastructure. It is often the local governments that bear the brunt of these costs.”

Cr Burnett said an important way to improve the situation was including ALGA and other bodies in national decision-making.

“You can’t make national decisions without understanding the local impacts,” he said.

“We are the most effective level of government because we have to be. We are calling on the next government to put our communities first.”

In her pre-filmed addressed, Regional Development and Local Government Minister Kristy McBain said Labor recognised the need for greater collaboration with the sector.