Transcript AC 2016 - ALGA Update

AUSTRALIAN LOCAL
GOVERNMENT ASSOCIATION
Australian Local Government
Association Update
Municipal 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
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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
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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
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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?
AUSTRALIAN LOCAL
GOVERNMENT ASSOCIATION