Murray River Council has made an in-depth submission to a Federal Government Inquiry into local government sustainability.
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As part of the inquiry, the House of Representatives Standing Committee on Regional Development, Infrastructure and Transport will examine local governments’ financial sustainability and funding frameworks, as well as changing infrastructure requirements and service delivery obligations.
MRC chief executive officer Terry Dodds PSM authored the piece on behalf of the council and described the submission as a long time coming.
“The whole model to finance local government is completely broken, and our submission highlights some blunt truths around this; some that have been on my mind for decades,” he said.
“And whilst there is real risk that the solutions may likely be placed in the too-hard basket, it’s important that we make ourselves heard nonetheless.
“After all, if the existing framework was sound, both the Federal and State Governments wouldn’t be carrying out Inquiries into local government financial sustainability at the same time.”
Mr Dodds is referring to the inquiry Victorian Legislative Council’s Economy and Infrastructure Committee began this week.
National Member for Northern Victoria Gaelle Broad, who is part of the group conducting the inquiry, said it was instigated by the Liberals and Nationals in response to concerns from many local government areas.
“The electorate of Northern Victoria that I represent covers nearly half of the state, and there are 27 local councils in the region,” Ms Broad said.
“I have met with many councils across the region, and between state and local government, it’s not always clear who pays for what and how much each should pay.
“This inquiry will provide an important opportunity to examine what is working well and what can be done better.”
Submissions for the Victorian Government inquiry are due by June 28. They can be made via the committee’s webpage.
Mr Dodds said cost-shifting and service delivery obligations, in particular, are crippling local councils.
“Cost shifting is not a new phenomenon; it has been happening for years with both State and Federal Governments cutting or transferring services,” he said.
“Distance exacerbates this pressure on councils too, especially in rural areas, where we’re left to fill servicing gaps after abandonment by higher tiers of government.
Mr Dodds said that, overall, he hopes the submission can play some part in prompting important discussions with a view to real and meaningful change, but he’s cynical.
“Reports critical of government actions, such as those on the NSW Government’s e-Planning Portal, are often suppressed to avoid political fallout, even when they highlight crucial issues like affordable housing. This lack of transparency undermines trust and accountability,” he said.
“Moving forward, there must be safeguards to ensure reports are released unaltered, and governments must address their own shortcomings rather than just burdening councils with recommendations, as has been the case after the last few inquiries.”
Mr Dodds hoped the Inquiry would prompt the Federal and NSW State Governments to prioritise rebuilding trust with local governments rather than the master-servant mentality that is ingrained in the culture.
“Local government is vital for communities, but it has been neglected and undermined in NSW for too long. It’s time for meaningful change and accountability from all levels of government,” he said.