This budget presented the treasurer an ideal opportunity for the Howard Government to support local communities where they need it most through a Local Community Infrastructure Renewal Fund – but he missed it.
Local Government had asked for $250 million per annum to begin to address the $14.5 billion shortfall in local community infrastructure renewals like libraries, swimming pools, sporting fields and stadiums, community centres, footpaths and bicycle paths.
This initiative was identified in the Price Waterhouse Coopers Report into Local Government Sustainability to improve the health and wellbeing of communities, improve social inclusion and in many cases act as a catalyst in the rejuvenation of local economies.
In typical fashion, the budget is presented in the best possible light, but the reality is the percentage of Federal funds going to local government has once again declined this year.
0.75% of tax revenue will go directly to local government down from 0.78% last year. This figure has dropped from 1.01% since the Howard Government has been in office.
The Treasurer is also misleading when he spruiks about the increase to Financial Assistance Grants.
Mr Costello, local councils know that this is an increase in line with CPI increases.
Once again the Howard Government has squibbed at the task of real reform of the Financial Assistance grants to Local Government.
Contact: Taryn Langdon 02 6277 3334 or 0417 148 059
