Julie Collins (Franklin, Australian Labor Party, Shadow Minister for Regional Development and Local Government) Share this | Hansard source

Financial assistance grants to councils are very, very important indeed. The councils know this. I think they would be very disappointed with the last speaker who came in here and said, 'Oh, yeah, we don't really want to do this, but it's all Labor's fault.' I do not see how it can be when they are bringing in at least a $22-billion Paid Parental Leave scheme whilst they are cutting important money from councils that councils are using on roads, bridges and on other programs in their communities for the elderly, young kids, youth workers—a whole range of important programs out there in the community. They are cutting those at the expense of introducing a $22-billion Paid Parental Leave scheme. It just doesn't add up. To come in here and blame Labor for their decision to cut almost $1 billion out of local government over four years just shows that they have the wrong priorities.

What is even more concerning about this decision is that they did not consult with councils before they did it. They did not consult with councils at all before making this decision. Then, of course, they did not tell councils until budget night, when many councils across the country had already locked in their budgets. As we heard from the former shadow minister, it has left councils in a very precarious position indeed whether having to make some very, very tough decisions—decisions to cut services, to cut staff, to increase their borrowings or to put up the rates that bit further. We know, of course, that that will impact on every household right across the country. Every household right across the country will be affected by this government's decision to cut Financial Assistance Grants, to cut almost $1 billion over four years out of local government. We should not be surprised by this, because they are true to form. They have been cutting money from local councils with their RDAF round 5 funding—$250 million ripped out of councils right across the country. This is, indeed, very concerning for councils. It is so concerning that the Australian Local Government Association has actually written to all their mayors saying how concerned they are about it. In fact, they are saying that they $925 million in Financial Assistance Grants reductions by 2017-18 will continue beyond that date, because, of course, the base level of FAGs will be permanently reduced by over 12 per cent. So it is not just going to affect councils over the next four years but this freeze in indexation is going to affect the councils for decades to come.

We had the previous member talk about the Roads to Recovery funding. ALGA had something to say about that, too. They said that by 2018-19, when the current extension of the Roads to Recovery is due to end, the loss of the Financial Assistance Grants will be equivalent to 95 per cent of the Roads to Recovery funding. Almost the entire value of the Roads to Recovery program will be lost by this one measure in freezing the indexation under the Financial Assistance Grants. So to come out here and say, 'But that is all okay because we've got Roads to Recovery.' It is not okay. Councils do not think it is okay and councils right across the country are saying it is not okay. It is not okay to have this cut on councils right across the country, affecting every household in the country with reduced services, increased rates or increased borrowings by their local government association.

Councils have already cut staff—in fact, they did it two weeks ago—because they did not know about this decision from the federal government, because, as I said, there was no consultation. We already have people who are unemployed because of this government's decision which came with no notice whatsoever to councils. Every council across the country had already been talking about their future budgets, and now they have to adjust them for the next four years, because this government gave them no notice whatsoever of this cut.

Of course, this is true to form, because the government did not really support recognition of local government that was going to be put in the referendum last year. They came in here and voted for it, but then they changed their position on it. Clearly, they have cut money to local government. They do not support local government as a legitimate third tier of government—the level of government that is closest to the people and deals on a daily basis with people's most urgent needs. They should be ashamed of themselves for this cut—this cut of almost $1 billion over four years that will hurt families right across the country. Councils across the country are furious about this. They have been writing to me and other opposition members about how concerned they are about this funding cut. It is not okay to come into this place and say, 'It's all Labor's fault,' because it is not. Labor did not make the decision to cut this money; we would not have made this decision; and we certainly would not— (Time expired)

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