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Local funding a means to achieve national economic priorities: ALGA

By intouch * posted 20-02-2020 09:30

  

The Australian Local Government Association’s submission for the 2020-21 Federal Budget outlines how funding at the local level can support the Commonwealth’s priorities of keeping the economy strong, and Australians safe.

Local Government has demonstrated it is a reliable, professional and cost-effective partner in delivering Commonwealth programs, for example the more than 60,000 projects in partnership with the Commonwealth since the creation of the $6.3 billion Roads to Recovery Program in 2001, the ALGA submission said.

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Other key points made by the association were:

  • That increased economic productivity will be enhanced if the Government’s priorities include a focus on partnering with Local Government to invest in local services and infrastructure that strengthen community wellbeing, social cohesion and local economies;
  • The resilience of local communities depends in part on the financial sustainability of their local governments and that sustainability can be greatly advanced by restoring the quantum of Financial Assistance Grants (FAGs) to at least one per cent of Commonwealth taxation revenue;
  • Investment through a partnership with Local Government is vital to boosting national productivity and meeting the challenges associated with population growth and demographic change.

The submission also emphasises increasing Roads to Recovery to $800m per annum to boost Local Government’s component of the national road network and boost road safety, and making the Bridges Renewal Program permanent.

ALGA President, David O’Loughlin said that resilience is a major component of ALGA’s representations to the Commonwealth, “because local communities’ potential is hindered whenever they are hit by a natural disaster, persistent drought, or fluctuations in global trade.

“To help achieve this we propose a targeted disaster mitigation program at a level of $200 million per annum for four years and a Local Government Climate Response Partnership Fund of $200 million over four years.”

ALGA’s submission noted that Local governments are on the frontline when dealing with the risks and impacts of climate variability, and some are struggling to understand the consequences and how they can respond to ensure their communities’ resilience.

The submission also proposed that investing in programs to mitigate natural disasters and respond to climate change yields a double dividend because it creates social and economic ‘co-benefits’ in the absence of disasters or significant rises in temperature, by saying: 

“The co-benefits may include employment growth; regional growth associated with investment and transition to new industries, and increased consumer expenditure resulting from lower insurance premiums and expenditure on energy, for example." 

ALGA also recommends ensuring equitable access to community services and stimulate local economies by investing in a Local Government Community Infrastructure Program of $300 million per annum over four years.

Read the full ALGA Federal Budget submission here.

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