AUSTRALIAN LOCAL GOVERNMENT ASSOCIATION Australian Local Government Association

AUSTRALIAN LOCAL GOVERNMENT ASSOCIATION

Australian Local Government Association Update Municipal Association of Victoria Mayor Troy Pickard, President Australian Local Government Association 8 September 2016

Australian Local Government Association • Federation of state and territory local government associations • Established 1947 • The Municipal Association of Victoria is a member • MAV President, Cr Bill Mc. Arthur is ALGA’s Vice President and a Board Member. Cr Coral Ross is also a Board Member • Small secretariat based in Canberra

Election Outcomes • • Coalition Government returned with slim majority Continuation of existing governance arrangements Infrastructure and Regional Development Portfolio Local Government Minister in Cabinet, Senator Fiona Nash • Shadow Minister for Regional Services, Territories and Local Government, Stephen Jones MP • Difficult Senate and the importance of partnerships in delivering outcomes

ALGA Priorities • Focus on Productivity and Innovation • Local Government’s Plan for an Innovative and Prosperous Future • Establish and re-establish relationships with Ministers and Shadow Ministers • Contemporary issues in funding, regional development and digital transformation

Role of LG in Productivity & Innovation • Major Economic Contributor • Employs more than 187, 000 (10% of public sector) • Annual operational expenditure in excess of $33 billion • Manages non-financial assets worth more than $354 b. • Replacement value est at $438 billion • Enables Productivity and Innovation

ALGA’s 2016 Federal Election Plan “Local Government’s Plan for an Innovative and Prosperous Australia” • Developed during the year before the Election • Focus on investment in productive infrastructure in partnership with the Federal Government • Linked to our 2016 Budget Submission • Released last month in advance of the election • Includes an assessment of the GDP and employment benefits of initiatives

Key Advocacy Priorities 1. 2. 3. 4. 5. Financial Assistance Grants (indexation and quantum) A targeted freight strategy An increase in local roads funding A community infrastructure program Social and human services Outlay over three years would be an aggregate of $4. 05 billion but would add an additional $7. 5 billion to GDP and create 19, 300 jobs over the same period.

Financial Assistance Grants • • Key local government revenue source from the C’wealth $2. 3 b per annum, distributed to all councils Indexed annually by CPI and population growth Indexation freeze for three years from 2014 -15 Restoration of Indexation Increase quantum to 1% of C’wealth tax revenue An increase to an estimated $3. 8 billion per annum Estimated benefits over first three years of restoring indexation and gradually increasing FAGs to 1% 7, 900 jobs and increase in GDP of $2. 81 b

Higher Productivity Investment Plan • $200 m per annum for 5 years • Higher productivity vehicles require local roads and key bridges to perform at a higher level • Additional investment required in the first mile/ last mile on identified freight routes • Assets must be assessed and investments made • Regional groups of councils must be supported • Would facilitate increased freight and address current access barriers to NHVR permit access 2, 400 jobs and increase in GDP of $1. 07 b

Permanent Roads to Recovery • R 2 R highly successful since 2001 • Major outcomes are increased road safety, productivity and equitable access • Complements councils own annual local roads expenditure of $7 b • Estimated direct benefits over first three years of a permanent and doubled R 2 R program 4, 100 jobs and increase in GDP of $1. 72 b

Community Infrastructure Program • $300 m per annum for 4 years • Targeted at community facilities, parks and recreation, stormwater, airports, etc • 2015 State of the Assets: 11% of community assets in poor or very poor condition, totalling $28. 5 b • Follows very successful 2008 -09 RLCIP 3, 700 jobs and increase in GDP of $1. 41 b

Other Priorities • Funding to support councils to work with local businesses and communities to implement local and regional climate change plans • Review of municipal funding arrangements for indigenous communities • Ensuring councils have access to adequate funding for human services • Better natural disaster funding • Legislative or administrative certainty for direct funding

ALGA’s Future Priorities Regional Development • Budget papers foreshadowed a review in 2017 • Encourage a review to build links between councils and RDAs Innovation and Digital Transformation • Use of council facilities/ libraries to provide innovation hubs

ALGA’s Future Priorities Infrastructure Agenda • Infrastructure Funding including Cities Deals • Funding of Roads, including road pricing Federal Funding of Local Government • The adequacy of FAGs quantum and the mechanism • A more streamlined share of taxation • 1% of Federal tax would mean funding of $3. 7 b last year

THANK YOU Any Questions?

AUSTRALIAN LOCAL GOVERNMENT ASSOCIATION