The contribution by local government to significant infrastructure commitments has been overlooked in the 2014-15 Federal Budget, according to the Australian Centre of Excellence for Local Government (ACELG).
ACELG, of which IPWEA is a partner, is the nation's leading research body for the local government sector, and is based at the University of Technology, Sydney.
According to new research by ACELG, local government builds, maintains and renews over $300 billion of infrastructure and assets nationally, with much of this occurring in regional and rural Australia. By comparison, the federal government holds $95 billion of infrastructure and assets.
This research demonstrates that the local government sector stands ready to help ‘fire up’ the economy following the treasurer’s call in his May 2014 budget speech: “…Mining and resources represent about 10 per cent of our economy, but two per cent of our employment. It has, however, done much of the heavy lifting over the decade. So now we need to fire up the rest of the economy.”
It is relevant that the treasurer pointed to the mining sector in his budget speech. According to ACELG research, local government is a significant employer in rural and remote areas (19%), behind agriculture (57%) and mining (33%) respectively, and second only behind mining (41%) in regional areas as the biggest employer (41%).
According to ACELG Director, Associate Professor Roberta Ryan, the budget outlines a central role for local government in ‘firing up’ the economy and creating stronger and more resilient regions.
“Sustained cooperation, coordination and collaboration between the federal government and local governments will be crucial to creating new jobs in regional and rural Australia and boosting economic growth,” said A/Professor Ryan.
“It is truly remarkable that local government’s contribution towards employment in regional and rural Australia, and the sector’s capacity to build stronger and more resilient communities through its significant infrastructure portfolio, has largely gone unnoticed in the budget,” she said.
“The employment capacity and infrastructure portfolio of local government positions the sector as an economic growth powerhouse for regional and rural Australia and its ability to get the economy moving. The Treasurer correctly notes that most of the kilometres driven by the mining sector are on private roads, but the roads the miners use to get to a mine – along with the roads used by farmers, truck drivers and outback tourists who drive through regional and rural community areas – are all proudly built and maintained by local government."
Much of the infrastructure funding in the budget is devoted to large-scale urban road projects.
“Local governments right across regional and rural Australia have the strategic capacity to assist the federal government to effectively deliver the infrastructure commitments made to regional and rural communities,” said A/Professor Ryan.
“With the construction phase of the mining boom nearing an end, local government will be a key player in keeping local jobs in local communities.”
ACELG Website:
www.acelg.org.au