Ratepayers across Victoria are struggling with high Council Rates fees and charges

Federal grant that must pass via state government are reduced to an unacceptable level

this and cost shift must stop.

This may be the first step

President Jack Davis J.P

‘30 June 2005

HAWKER WELCOMES GOVERNMENT COST SHIFTING RESPONSE

Member for Wannon, David Hawker, today welcomed an announcement that the majority of recommendations put forward by the Inquiry into Cost Shifting onto Local Government have been supported by the Australian Government.

Mr Hawker, who chaired the 2003 Committee Inquiry, said that the recommendations are aimed at forging a new, fair funding partnership between the three spheres of government that will better serve all Australians.

The report highlighted the problems that local government faces with extra responsibilities being loaded onto Councils, mostly by the State Government, without adequate financing.

“One of the most crucial recommendations involves all levels of Government coming together to develop an inter-governmental agreement that identifies the roles and responsibilities of local government in delivering State and Federal programs and the allocation of funds and resources needed to fulfil these responsibilities.

“The Government announced today that it will pursue the development of such an inter-governmental agreement,” Mr Hawker said.

“The Government also agreed that local government should be recognised as an integral level of governance in Australia and will seek to have cost shifting recognised as a genuine problem.

“Support for recommendations requiring State Governments to report on the volume of funds to be distributed to local government, and ensuring that Special Purpose Payments (SPP) directed to local government should be conditional on States not reducing their effort, will go a long way towards rectifying the current problems of duplication and short-changing of local governments by the States.

“The Federal Government has also recognised the need to continue to develop partnership arrangements with local government on the delivery of Federal programs such as the highly successful Roads to Recovery,” he said.

Member for Western Province and Victorian Shadow Minister for Local Government, John Vogels, was delighted that the Federal Government will propose a resolution in both chambers of Parliament that will recognise Local Government as an integral level of governance in Australia.

"The recommendation that Specific Purpose Payments directed to local government by the Federal Government, such as roads, be conditional upon the States not reducing their efforts is to be applauded.

"For example, in Victoria we have witnessed annual increases in grants and transfer payments by the Commonwealth Government to the State for on-passing, only to find that no actual increase is derived by Councils due to similar dollar reductions from the Victorian Government," Mr Vogels said.

In conclusion Mr Vogels said, "developing an inter-governmental agreement that identifies roles and responsibilities for each tier of government with adequate resources, will go a long way in delivering the services that councils are expected to provide."’

RATEPAYERS VICTORIA, Inc. A0040924M - PO BOX 1057 Huntingdale, Victoria 3166