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Local Government in Australia during a global economic downturn Cr Geoff Lake President

Local Government in Australia during a global economic downturn Cr Geoff Lake President Australian Local Government Association. Outline of Presentation. Local Government in Australia The impact of the global financial crisis (GFC) in Australia

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Local Government in Australia during a global economic downturn Cr Geoff Lake President

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  1. Local Government in Australia during a global economic downturn Cr Geoff Lake President Australian Local Government Association

  2. Outline of Presentation • Local Government in Australia • The impact of the global financial crisis (GFC) in Australia • Implications of the GFC for Local Government in Australia and what we are doing in response

  3. Local Government in Australia • 565 councils • A creation of state governments • 2% of GDP (annual expenditure of $25 billion) • Employs 170,000+ staff • Very diverse in terms of population and area • Population ranges from 1 million to less than 200 people • Area from 2.5 sq km to 378,000 sq km (size of Japan)

  4. Local Government Finances and Activities Local Government revenue sources: • Property rates 38% • Fess and charges 31% • Grants from other governments 13% • Interest 4% • Other 14% Local Government expenditure: • Transport (incl roads) 25% • Housing and community amenity 24% • General Public services 15% • Recreation and culture 15% • Education, health and welfare 8% • Other Economic affairs 4% • Public order and safety 2% • Other 7%

  5. Australian Local Government Association (ALGA) Voice of local government at the national level Influences policy development at the national level Member of Council of Australian Governments and 13 Ministerial Councils A vehicle for consolidated national effort across all Australian councils

  6. Impact of the Global Financial Crisis National level • Banking sector relatively strong • Global credit squeeze impact • Australia is a trading nation and exports have suffered • Economy expected to contract by 1.4% in 2008-09 • Stimulus packages • October 2008 $10.4b Economic Security Strategy • February 2009 $42b Nation Building and Jobs Plan

  7. Impact of the Global Financial Crisis Local Government • Beneficiary of economic stimulus • Impact on rates and services • Local Government investments • Local Government Superannuation Funds • Borrowing and the credit squeeze

  8. What Australian Local Government is doing in response to the GFC • Increasing spending on local infrastructure • Positioning to receive further stimulus money from the Australian Government • Maintaining (or expanding) local services • Strengthening local government’s institutional place in Australia’s three-tiered system of government • Revisiting where our collective efforts are focused

  9. External funding provided to local government Federal Govt $2.5 billion (68%) State Govts $1.2 billion (32%)

  10. Local government expenditure on influencing government

  11. Final Word • Unprecedented opportunity for local government in Australia at the NATIONAL level • Increasing role for LG and Australian Government  decreasing role for state governments • New relationship between Australian Government and LG • BUT, some challenges – e.g. community perceptions and councillor performance

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