Australian Local Government Association UpdateMunicipal Association of Victoria Mayor Troy Pickard, President Australian Local Government Association 8 September 2016
Australian Local Government Association Federation of state and territory local government associations Established 1947 The Municipal Association of Victoria is a member MAV President, Cr Bill McArthur is ALGA’s Vice President and a Board Member. Cr Coral Ross is also a Board Member Small secretariat based in Canberra
Election Outcomes Coalition Government returned with slim majority Continuation of existing governance arrangements Infrastructure and Regional Development Portfolio Local Government Minister in Cabinet, Senator Fiona Nash Shadow Minister for Regional Services, Territories and Local Government, Stephen Jones MP Difficult Senate and the importance of partnerships in delivering outcomes
ALGA Priorities Focus on Productivity and Innovation Local Government’s Plan for an Innovative and Prosperous Future Establish and re-establish relationships with Ministers and Shadow Ministers Contemporary issues in funding, regional development and digital transformation
Role of LG in Productivity & Innovation Major Economic Contributor • Employs more than 187,000 (10% of public sector) • Annual operational expenditure in excess of $33 billion • Manages non-financial assets worth more than $354b. • Replacement value est at $438 billion Enables Productivity and Innovation
ALGA’s 2016 Federal Election Plan“Local Government’s Plan for an Innovative and Prosperous Australia” Developed during the year before the Election Focus on investment in productive infrastructure in partnership with the Federal Government Linked to our 2016 Budget Submission Released last month in advance of the election Includes an assessment of the GDP and employment benefits of initiatives
Key Advocacy Priorities Financial Assistance Grants (indexation and quantum) A targeted freight strategy An increase in local roads funding A community infrastructure program Social and human services Outlay over three years would be an aggregate of $4.05 billion but would add an additional $7.5 billion to GDP and create 19,300 jobs over the same period.
Financial Assistance Grants Key local government revenue source from the C’wealth $2.3b per annum, distributed to all councils Indexed annually by CPI and population growth Indexation freeze for three years from 2014-15 Restoration of Indexation Increase quantum to 1% of C’wealth tax revenue An increase to an estimated $3.8 billion per annum Estimated benefits over first three years of restoring indexation and gradually increasing FAGs to 1% 7,900 jobs and increase in GDP of $2.81b
Higher Productivity Investment Plan $200m per annum for 5 years Higher productivity vehicles require local roads and key bridges to perform at a higher level Additional investment required in the first mile/last mile on identified freight routes Assets must be assessed and investments made Regional groups of councils must be supported Would facilitate increased freight and address current access barriers to NHVR permit access 2,400 jobs and increase in GDP of $1.07b
Permanent Roads to Recovery R2R highly successful since 2001 Major outcomes are increased road safety, productivity and equitable access Complements councils own annual local roads expenditure of $7b Estimated direct benefits over first three years of a permanent and doubled R2R program 4,100 jobs and increase in GDP of $1.72b
Community Infrastructure Program $300m per annum for 4 years Targeted at community facilities, parks and recreation, stormwater, airports, etc 2015 State of the Assets: 11% of community assets in poor or very poor condition, totalling $28.5b Follows very successful 2008-09 RLCIP 3,700 jobs and increase in GDP of $1.41b
Other Priorities Funding to support councils to work with local businesses and communities to implement local and regional climate change plans Review of municipal funding arrangements for indigenous communities Ensuring councils have access to adequate funding for human services Better natural disaster funding Legislative or administrative certainty for direct funding
ALGA’s Future Priorities Regional Development Budget papers foreshadowed a review in 2017 Encourage a review to build links between councils and RDAs Innovation and Digital Transformation Use of council facilities/ libraries to provide innovation hubs
ALGA’s Future Priorities Infrastructure Agenda Infrastructure Funding including Cities Deals Funding of Roads, including road pricing Federal Funding of Local Government The adequacy of FAGs quantum and the mechanism A more streamlined share of taxation 1% of Federal tax would mean funding of $3.7b last year
THANK YOU Any Questions?