Media Releases

Minister for Local Government Jeanette Powell today said she was disappointed the Victoria Grants Commission Annual Report 2010-11 detailed no increase in real per capita terms in total general purpose grants to Victorian local councils.

Mrs Powell said Commonwealth funding for Victorian local councils had been significantly depleted over the past 15 years, to the tune of $292 million, and did not reflect the increased cost pressures councils are facing today.

“This report is the latest evidence of long-term neglect of local government by the Commonwealth,” Mrs Powell said.

“Under successive Commonwealth Governments, financial assistance grants to local government have fallen from 1.02 per cent of total Commonwealth taxation revenue in 1996-97 to 0.62 per cent in 2009-10.

“By 2012-13, it is estimated that these grants will be the equivalent of just 0.57 per cent of total Commonwealth taxation revenue.

“If financial assistance grants to local government had been maintained at the 1996-97 level of 1.02 per cent of Commonwealth taxation revenue, grants to Victorian councils in 2009-10 would have been $292 million more than was actually the case,” Mrs Powell said.

This is why the Victorian Coalition Government has committed to:
· a $1 billion Regional Growth Fund that reflects and embraces community and regional priorities to build a better future in regional and rural Victoria;
· $160 million in funding for upgrading roads and bridges across 40 rural councils; and
· $600,000 to establish and support a Ministerial-Mayors’ Advisory Panel; a valuable channel between the two levels of government which should help to improve council’s service delivery.

“I will continue to fight for a fair share for Victorian local councils, which are now operating in an increasingly complex landscape, whilst expectations among constituents regarding service breadth and depth are also rising,” Mrs Powell said

There is a crisis looming in regional Victoria as rural councils struggle to cope with Brumby Government cost shifting, Shadow Minister for Local Government Jeanette Powell said.

“I have met with nearly 30 rural municipalities across Victoria over the past 18 months and they have told me they are struggling to cope with the additional cost burdens that are being imposed by the Brumby Government,” Mrs Powell said.

“Rural councils are suffering from 11 years of cost shifting under Labor. Additional charges imposed on local councils range from the landfill levy to roadside weed management, family day care, libraries, statutory planning and school crossings.

“Councils are being starved of funds as the current levels of government funding in areas such as general purpose and local roads grants, are not sufficient to fund the maintenance and upgrading of council assets such as roads and bridges.

“To protect their assets many councils have been forced to close bridges, apply load limits or restrict the movement of trucks. Just this week Strathbogie Shire Council was forced to close the 120-year-old heritage-listed Kirwans Bridge near Nagambie, because it can’t afford to maintain it.

“This critical piece of infrastructure will not be repaired and that will affect fire, ambulance, and SES services, along with residents.”

Mrs Powell said rural councils already had higher expenditure per person than urban councils and were faced with the burden of higher costs because they maintain more kilometres of roads per person and many more bridges.

“Many rural councils have significant numbers of bridges needing repair, with estimates of about $700,000 to repair or replace a bridge,” Mrs Powell said.

“These councils have to rely more and more on rate revenue, and that has seen some councils nearly doubling their rates over the past eleven years.

“The recent announcement by the Victorian Liberal Nationals Coalition of a $1 billion Regional Growth Fund will go a long way to helping ease the burden on rural councils.

“It is time the Brumby Government listened to rural communities and stopped shifting costs onto local councils and starving them of the funds necessary to support vital infrastructure,” Mrs Powell said.

Local Government Minister Richard Wynne has admitted washing his hands of the responsibility for Neighbourhood Safer Places (NSPs) while under questioning by the Victorian Parliament Public Accounts and Estimates Committee (PAEC), Shadow Minister for Local Government Jeanette Powell said today.

When asked what assistance his government was providing to councils to meet the ongoing cost of maintaining designated NSPs the Minister said ‘It is, in the view of the government, a responsibility of local government to have these facilities in place’.

Mrs Powell said John Brumby had initially promised to fully implement the Bushfires Royal Commission interim recommendations which included that the government identify, establish and advertise designated community refuges and NSPs.

“It is clear that rather than implement the Commission’s recommendation as he promised to do, the Premier has shifted responsibility for NSPs to local councils,” Mrs Powell said.

“I have met numerous councils from bushfire-prone areas who tell me it will cost each of them hundreds of thousands of dollars to develop and maintain NSPs.

“This extra burden will put a strain on councils’ already stretched finances and could jeopardise other local projects.

“Only $500,000 from this year’s budget has been allocated overall for municipalities to develop and maintain NSPs, yet the Municipal Association of Victoria requested $12 million to cover costs for the next two years.

“Once again the Brumby Government has treated local government with contempt by passing on state responsibilities without adequate funding.”

Mrs Powell said ratepayers would have to pay an increase in rates because of the Brumby Government’s constant foisting of state responsibilities on to local councils.

“Unless the government provides local councils with additional funding for NSPs it's going to be the ratepayers of these municipalities who have to wear the cost,” Mrs Powell said.

Councils are being forced to collect yet more tax for John Brumby with ratepayers soon to be charged a higher landfill levy, Shadow Minister for Local Government Jeanette Powell said today.

“From 1 July, the landfill levy for householders in Melbourne will increase from $9 a tonne in
2009-10 to $40 a tonne by 2011-12 while the levy for rural ratepayers will increase from $7 a tonne to $20 respectively,” Mrs Powell said.

“The Victorian Liberal Nationals Coalition welcomes recycling initiatives and green jobs so we did not oppose this legislation but we condemn Labor for its lack of consultation and transparency.

“The immediacy of this increase without appropriate consultation is putting huge financial pressure on councils across Victoria.”

Mrs Powell said at least 16 councils had contacted her with concerns.

One letter says: “Council believes that the net effects of such large and arbitrary levy increases add to the financial stresses already punishing our community while increasing the extent of illegal dumping.”

“A number of councils now have a million dollar black hole in their budget because the levy was introduced in March when they had already completed budget planning,” Mrs Powell said.

“Local Government Minister Richard Wynne should seriously consider compensating councils given the high costs municipalities now have to bear.

“Councils are also concerned that illegal dumping will occur as a result of people attempting to avoid a fee hike.”

Mrs Powell said the Municipal Association of Victoria was becoming increasingly frustrated by councils’ increasing role as ‘state collection agencies’ and had recommended councils identify the increased levy as a state government charge in its rates notices.

“Premier Brumby and Local Government Minister Richard Wynne must come clean and admit it if they plan to dump more State Government responsibilities on local councils,” Mrs Powell said.

“After nearly eleven years, Labor is clearly not up to the task of governing Victoria and is forcing councils to do the job instead,” Mrs Powell said.

Local government is the big loser in Victoria’s State Budget, Shadow Minister for Local Government Jeanette Powell said today.

“Due to the lack of support from the Brumby Government, councils will be forced to raise rates or borrow large amounts of money to maintain and upgrade ageing infrastructure,” Mrs Powell said.

“Under John Brumby councils are being increasingly lumped with state government responsibilities without enough funding to carry out the associated duties, which means the added burden falls on ratepayers to cover the gap.

“One of the major concerns for local government is the very limited funding provided for councils to identify and maintain Neighbourhood Safer Places in this Budget.

“The Victorian Government was handed this responsibility in the Bushfires Royal Commission Interim Recommendations, but John Brumby shifted it to councils with just $500,000 total funding.

“This State Budget has provided another $500,000, but the Municipal Association of Victoria has estimated councils would need a total of $12 million for NSPs.”

Mrs Powell said the Brumby Government had also once again failed to properly fund upgrades to public libraries across Victoria.

“The State Budget allocates $3 million to extend the Living Libraries capital works program for another year which is considerably less than the estimated $20 million needed to provide new information technologies and maintain staffing and operational requirements,” Mrs Powell said.

Mrs Powell said local councils would also be disappointed with the limited funding provided for pest management and control of roadside weeds.

“After waiting years for a decision by the State Government on who is actually responsible for managing roadside weeds, councils will now be forced to wait until after the election to find out,” Mrs Powell said.

“The Brumby Government continues to burden councils with increased responsibilities and inadequate support.”

The Brumby Government State Budget should include increased funding to support rural and regional councils, Shadow Minister for Local Government Jeanette Powell said today.

Mrs Powell said the Victorian population was growing at an unprecedented rate which placed increased pressure on local government infrastructure and services.

“Supporting and improving councils’ ability to plan for future growth and develop infrastructure projects will ultimately benefit the economy of regional communities,” Mrs Powell said.

“For nearly 11 years Labor has ignored the growing needs of local councils and their communities.

“Rural councils with large geographical areas and a low rate base need support from the Brumby Government as it generally costs more to provide basic services in country areas.

“Without extra government funding many rural councils would be financially unsustainable.”

Mrs Powell said Labor’s constant cost-shifting onto councils meant ratepayers were either forced to pay increased rates or face reductions to vital community services.

“This has placed a huge strain on council services including libraries, meals on wheels, pensioner rate rebates and health and community services,” Mrs Powell said.

“Municipal libraries are in a particularly weak financial position because the Labor Government’s funding contribution has continually declined in recent years.

“Councils are being burdened by cost-shifting and red tape by the State Government.

“It is time John Brumby adequately funded local government to provide community services and keep costs down,” Mrs Powell said.

The State Budget should include increased funding for councils to designate and maintain Neighbourhood Safer Places (NSPs), Shadow Minister for Local Government Jeanette Powell said today.

Mrs Powell said councils in high fire risk areas were doing a great job but they were being undermined by a lack of State Government support.

“NSPs provide vital refuge for bushfire-prone communities and they must be established and maintained as a matter of priority,” Mrs Powell said.

Mrs Powell said the Bushfires Royal Commission interim recommendations included directives for the Brumby Government to identify, establish and advertise designated community refuges and NSPs.

“The State Government created new laws shifting this important task to councils but only provided a meagre $500,000 total funding to the Municipal Association of Victoria (MAV) for Victoria’s 79 councils to meet their obligations under the legislation,” Mrs Powell said.

“Councils received on average $7,000 each from the State Government to bring refuges up to an appropriate standard, but the real cost is estimated at up to $1 million, not including maintenance.

“The requirement of councils to fund NSPs will have a major impact on ratepayers as it has not been costed in councils’ own budgets for 2010-2011.

“I have spoken with a number of rural councils who tell me they have limited capacity to develop and maintain NSPs due to their low rate base.

“The Victorian Liberal Nationals Coalition has repeatedly called on the Brumby Government to provide additional support to help councils in bushfire-prone communities bring existing NSPs up to standard and the 2010-2011 State Budget should include funding to do just this.

“Under John Brumby and Local Government Minister Richard Wynne councils are shouldering an increasing number of State Government responsibilities but without appropriate funding.

“In the interests of public safety, the Brumby Government’s Budget must provide additional measures for councils in bushfire-prone areas to implement and maintain NSPs,” Mrs Powell said.

The Brumby Government should increase support for local councils to carry out bushfire risk management, according to lawyers for the Bushfires Royal Commission.

Shadow Minister for Local Government Jeanette Powell today applauded Counsel Assisting’s recommendations to the Bushfires Royal Commission on roads and roadsides which said local government needed to be adequately resourced to manage roads and roadsides.

“Lawyers for the Bushfires Royal Commission say Victoria’s bushfire risk is greatest in rural and regional municipalities where resources are likely to be scarce, due partly to a low ratepayer base,” Mrs Powell said.

“Counsel Assisting has recommended that more be done to assist councils to carry out the important task of bushfire prevention.”

‘The State and Commonwealth governments should increase the resources provided to local government in Victoria to discharge its bushfire risk management functions.’
(Land Use Planning Submission of Counsel Assisting the Bushfires Royal Commission)

Mrs Powell said local councils were doing a tremendous job at managing bushfire risk in their communities but they were under-funded by the State Government.

“Under John Brumby, councils are being made to manage an increasing number of state responsibilities without adequate resourcing,” Mrs Powell said.

“Local Government Minister Richard Wynne should stand up for the councils he represents to ensure they receive a fair share of the funding pie.

“The risk of fires will be much greater unless councils receive appropriate funding to remove high fuel loads on roadsides.”

Mrs Powell said the Brumby Government had denied that existing roadside works were inadequate but it had supported ‘in principle’ Counsel Assisting’s recommendation to increase resources to councils to discharge bushfire risk management functions.

“The Municipal Association of Victoria understandably welcomes any provision of more resources, and says particular emphasis should be given to smaller councils in areas of high bushfire risk,” Mrs Powell said.