From the President

Local government is at a crossroads in terms of its future as the third sphere of government. The challenges it faces mean that there is a 'once in a generation' opportunity to shape the future of governance in Australia. The new and challenging national landscape as defined by the new Federal Government, but which began to be shaped in the last 3-4 years relates to local government's roles and responsibilities, the long term sustainability of councils and local communities and local government's place in the Constitution of Australia. Local government's response to this agenda and its ability to engage Federal and state governments, will contribute to how Australia is governed in the future and how we see ourselves as a nation.

As a sector, local government is represented within states and territories by state and territory local government associations and at the national level by the Australian Local Government Association (ALGA). Through ALGA, local government is deeply involved in intergovernmental relations and is part of the intergovernmental machinery which keeps the Australian Federation together. Through ALGA, local government has a seat at the Council of Australian Governments and in 13 Ministerial Councils. Local government's engagement in these fora ensures that the role and views of the third sphere of government are heard and acknowledged and that local government is able to play an appropriate part in developing and implementing intergovernmental reforms and initiatives.

The role of local government has changed significantly over time. Local government developed in the nineteenth century to provide property-related municipal services and local roads but in recent decades local government has provided an increasing range of social and economic services including health and welfare services, environmental services, community housing recreation and sporting facilities. More recently councils are facing the need to address challenges in the areas of climate change, urban sustainability, water management and the provision of broadband telecommunication services. The changing role of local government has reflected increasing community expectations of government and also a degree of cost shifting onto local government by the other spheres of government.

The broader issue of adequate funding for local government, however, remains unresolved. Recent studies into the financial sustainability of local government undertaken in New South Wales, South Australia, Tasmania and Western Australia, as well as at the national level by PricewaterhouseCoopers (PwC), have concluded that many councils are facing financial sustainability challenges. The PwC report confirms that up to 30% of councils might not be financially sustainable without reforms which increase their revenue or reduce their expenditure. This is supported by the FiscalStar report released this week in NSW.

The PricewaterhouseCoopers report estimates a growing backlog of infrastructure investment in the order of $14.5 billion, with an estimated annual funding gap to cover this backlog and underspend on renewals of $2.16 billion.

To address this lack of funding, local government is looking at a twin track approach involving improvements in its own performance through innovation and creativity and initiatives such as outsourcing and the sharing of services across councils, and improvements in revenue through inter-governmental transfers. Local government is seeking an increase in the general purpose funding it receives from the Australian Government, through Financial Assistance Grants. The Grants, which seek to ensure that everyone, no matter where they live in Australia, receives an acceptable level of local services, currently provide $1.86 billion per annum, but there is a recognition that this is not sufficient to achieve the goal of equalisation of service standards. Local government has sought an increase in the Grants to ensure that the general purpose funding to local government is equal to at least 1% of Federal Tax revenue, excluding the GST. That would equate to a level of grants of around $2.5 billion and would represent a fairer share of taxation revenue for local government and help it to meet the needs of local communities.

The ability of local government to meet the needs of its communities will always be dependent on its ability to play an appropriate role in the Australian Federation and receive adequate funding. As all spheres of government strive to achieve a more collaborative approach to federalism the issue of constitutional reform naturally comes to the forefront of considerations.

The Federal Government is committed to consulting local government on options for achieving constitutional recognition and local government itself is now engaged in examining the issue further. This involves a consultation process with all state and territory local government associations and, through them, individual councils on possible options for constitutional recognition and the process which would be involved in seeking an amendment to the Constitution. Local government as a whole will have a chance to consider the matter in detail at a Constitutional Summit being held in Melbourne from 8-11 December 2008.

As we look beyond 2008, the future of local government is inextricably tied to the future of our local communities and how we face the challenges of economic, demographic and climatic change. Local government plays an important leadership role as an advocate for communities, to stand up for local rights, and also to provide essential services and infrastructure. Local government is indeed at a crossroads - it can stay as it is with the existing limitations and be largely taken for granted, or it can fully effective. Only when local government enjoys a real and comprehensive partnership with the other spheres of government, based on shared respect and a shared vision, will it be able to really fulfil its charter to its local communities and be fully equipped to meet the needs of the people it serves.

Cr Paul Bell AM
ALGA President

Training to prepare farmers

Primary producers and industries will have access to specialised training to help them deal with the impacts of climate change.

The new $26.5 million FarmReady fund is part of the $130 million Australia's Farming Future initiative announced by the Federal Government in the Federal Budget. It follows on from the $46.2 million announced earlier this month for research and development.

Primary producers will be able to apply for grants of up to $1,500 each financial year to attend approved training courses, which will help to cover travel, accommodation and childcare costs. Industry associations and farming and natural resource management groups will be able to apply for grants of up to $80,000 each financial year to help support their members in adapting to climate change. The first courses are expected to begin in the next few months. For more information call 1800 638 746

Waste wipeout at Middleton Beach, WA

New waste and recycling bins installed at Middleton Beach have now, nearly a year on, led to a noticeable reduction in litter and enabled recycling to happen in the precinct for the first time.

Funded by the Packaging Stewardship Forum (PSF) of the Australian Food and Grocery Council and the City of Albany the six new recycling and waste bin stations were installed in September 2007.

Since that time, three audits have been conducted and have found a considerable increase in usage of the recycling bins by beach users from the first to last audit. The volume of contamination, that is non-recyclable material mixed in with recyclable material, was two per cent at the beginning of the trial and decreased to nil by the final audit.

Outcomes of Transport Ministers' Meeting

The nation's Transport Ministers met on 25 July and agreed to recommend to the Council of Australian Governments (COAG), where local government is represented, that subject to the outcomes of regulatory impact assessments COAG endorse in-principle the establishment of:

• A National Roads Safety Council;
• A single national system of heavy vehicle regulation, registration and driver licensing; and
• A single national system for maritime safety regulation administered by the Australian Maritime Safety Authority (AMSA)

Of particular interest to local government is the proposed National Roads Safety Council and a single national system of heavy vehicle regulation, registration and driver licensing.

The objective of the National Road Safety Council is to enhance implementation of key reforms from the National Road Safety Strategy and other road safety reforms by raising the profile of road safety across government, business and the broader community through high level partnerships across key sectors.

The Council's membership would include community leaders and experts from the business, government, academic and community sectors, with expertise in key elements of road safety and/or other essential area. Subject to COAG's agreement, the Council would meet early 2009.

A single national system of heavy vehicle regulation, registration and driver licensing. This is an important micro economic reform that has the potential to significantly improve the efficiency of the road transport industry.

Also of interest to local government is the national registration scheme for heavy vehicles. The Commonwealth is to prepare legislation to establish a Federal Registration Scheme for heavy vehicles by 1 July 2009. Initially the scheme would work in the same manner as the current Federal Interstate Registration scheme including the distribution of the revenue raised to jurisdictions.

Under current Federal Registration Scheme local government does not receive any funding from the registration receipts. However Ministers have agreed that the National Transport Commission be asked to advise on alternative distribution methods consistent with the ATC's in principle agreement that the "money follows the truck".

This is an important principle for local government as it recognises that heavy vehicle registration fees should be allocated to reflect the damage caused to roads irrespective of whether a road is a major highway, arterial or local road. ALGA will continue to pursue this to ensure that local government is properly compensated for the damage to local roads caused by heavy vehicles.

Community wakes up to NAP funding

Response to the 2008-09 Community Relations and National Action Plan funding rounds has been overwhelming, the Parliamentary Secretary for Multicultural Affairs and Settlement Services, Laurie Ferguson, has said.

Applications for funding opened in April 2008 to incorporated, not-for-profit organisations.

Groups such as school communities, non-profit foundations, service clubs, sporting bodies, ethnic communities, youth organisations, local government authorities, universities and education providers have submitted proposals.

"The Department of Immigration and Citizenship has received more than 1000 applications to date, compared to about 500 last year," Mr Ferguson said.

"Given the response, the Community Relations small grants are now due to be announced in late August and the larger Community Relations and National Action Plan-funded projects in late October 2008.

"I believe this positive response in the number of applications is due to the increased awareness of the benefits of cultural diversity in the community.

"Cultural diversity gives vibrancy and dynamism to Australian life and is essential for the wellbeing of all Australians and our communities.

Austroads Publications

The following new Austroads technical publications are available to councils free of charge as a result of the ALGA membership of Austroads:

• Austroads Bituminous Materials Safety Guide (AP-G41/08)
• Guide to Pavement Technology Part 2: Pavement Structural Design (AGPT02/08)
• Guide to Pavement Technology Part 5: Pavement Evaluation and Treatment design (AGPT05/08)
• Guide to Traffic Management Part 2: traffic Theory (AGTM02/08)

These publications are available for free download in PDF format at the Austroads website.

NSW granny flat move - consultation with councils flagged

A NSW government plans to build more granny flats and secondary dwellings to ease the rental crisis.

Premier Morris Iemma said he will begin consulting local councils, the building industry and the public about the initiative. He also will lobby the federal government to scrap capital gains tax on privately rented secondary dwellings.

Free breakfast in Brisbane, Melbourne and Sydney

The Australian Telecommunications Users Group (ATUG) is offering free breakfasts on how businesses can get better deals with their communication technologies in the following locations. Local government and council representatives are encouraged to attend:

Tuesday 12 August 2008
7:00am for a 7.30am start till 9:00am
DLA Phillips Fox,
Level 29 Waterfront Place
1 Eagle St
Brisbane

Wednesday 13 August 2008
7.00am for a 7.30am start till 9:00am
The Naval and Military Club,
27 Little Collins Street
Melbourne

Thursday 14 August 2008
7.00am for a 7.30am start till 9:00am
The Chatswood Club
11 Help Street
Chatswood

Topics discussed will be:

• Internet Services
• Bundled Services
• 3G Technologies
• Internet Security
• Prices and Value for Money

RSVP: Patrick Sinclair on 02 9495 8999 or patrick.sinclair@atug.org.au

Minister wins approval for NSW ban on cigarette displays

The NSW Local Government Minister, Paul Lynch, has received applause from local government for the State Government's tough new tobacco laws approved by Cabinet this week. Speaking at a Local Government function in Paramatta, Mr Lynch was greeted with an ovation for the ground-breaking move. Under the measures, access to cigarettes and the way they are advertised will be severely restricted, and smoking in cars with children under 16 will be banned. NSW is following the lead of Thailand, Iceland and Canada in banning displays. The move follows concern at levels of smoking among children, with 20% saying they have smoked in the past 12 months. A recent Cancer Institute NSW survey found that 31.4% of frequent smokers said that moving displays in shops out of sight would make it easier for them to quit. South Australia was the first state to ban smoking in cars with children on board in May. The Tasmanian legislation came into effect in January, with fines of up to $2000 for people smoking in cars carrying children. Victorian Premier John Brumby is considering a similar ban.

Census of child care services

The most recent Census conducted in May 2006 is now available. The Census is used extensively for monitoring growth in the sector and assisting in policy formulation and planning. The Census examines information about child care users, staff and carers and operational details of child care services for 9 service types:

• Aboriginal Playgroups and Enrichment Programs
• Family Day Care Schemes
• In Home Care Schemes
• Long Day Care Services
• Mobiles and Toy Libraries
• Multifunctional Aboriginal Children's Services
• Occasional Care Services
• Outside School Hours Care Services
• Vacation Care Services

The Census is available here

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LOCAL ROAD SAFETY AND TRAFFIC ENGINEERING CONFERENCE

 

Gold Coast International Hotel, Gold Coast, August 26 and 27

The Local Road Safety and Traffic Engineering Conference, to be held on August 26 and 27, focuses on new developments and innovation in road safety and traffic engineering from a local perspective for local and connecting roads, including pedestrian and cyclist safety. It includes local roads and traffic areas from residential streets, to shopping precincts to rural roads.

Case studies will be a particular feature of the conference with extended discussion periods to enable strong audience participation and interaction, with contributions from Pine Rivers Shire Council, Port Stephens Council, Gold Coast City Council, as well as international best practice in UK, Norway, Japan and Denmark.

Presentations will focus on road safety audits, local area traffic management solutions, speed on local streets, level crossings, parking, traffic management plans, road safety audits, litigation, pedestrian safety and unsealed roads.

The speaking panel will include: Phil Allan, Director Safety and Regulation Division, Department for Transport, Energy & Infrastructure, South Australia; Rifaat Shoukrallah, Senior Manager, Traffic Management and Safety, ACT; Ronald King, Supervising Traffic Engineer, Network Logistics Section, Traffic Management and Operations Section, Gold Coast City Council; Hugh Donaldson, Transport Technical Executive, Parsons Brinckerhoff, and Graham Orr, Traffic and Road Safety Project Officer, Port Stephens Council.

This conference will be of relevance to Council Engineers and Road Safety Officers, Councilors, Traffic Engineers and, Researchers as well as consultants and contractors within the traffic engineering and road safety areas.

To register online visit www.halledit.com.au/conferences/traffic/2008 or contact Denise McQueen at Hallmark Conferences on (03) 8534 5021 Fax: (03) 8534 5121 Email: denise.mcqueen@halledit.com.au.

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September 10-11 Dockside, Sydney

The 3rd annual Local Government Sustainable Development Conference is designed to assist local government managers and practitioners to identify, plan and implement best practice sustainable development solutions in a wide range of areas, including reducing the carbon footprint, promoting energy efficiency, water conservation and planning, community engagement in environmental initiatives, and sustainable planning and urban design.

The two-day conference, to be held on September 10-11 at Dockside in Sydney, will also feature award-winning and leading-edge best practice case studies in sustainable development, including addressing challenges of sustainability, and providing advice for how local governments can achieve their sustainable development goals in a cost-effective manner. The conference is sponsored by Environs, the Local Government Environment Network, which is Australia's oldest local government environment organisation. The President of Environs, Evan Thomas, will chair the conference.

Over 30 experts in sustainability will speak at the conference, including:

• The Hon Penny Wong, Federal Minister for Climate Change and Water (Invited)
• Steve Costello, Assistant Secretary, Urban Water Security Branch, Department of Environment, Water, Heritage and the Arts
• Cr Paul Pisasale, Mayor of Ipswich Council
• Cr Tim Heenan, Mayor, Shire of Yarra Ranges
• David Keenan, Director, City Sustainability, Hume City Council
• Paul Woods, General Manager, Kogarah Shire Council
• Henry Wong, General Manager, Manly Council
• Ian Blair, Senior Consultant, Prima Consulting
• Dr Michael Ambrose, CSIRO Sustainable Ecosystems
• Colin Dimitroff, Principal, Corporate Sustainable Solutions, URS Asia Pacific
• Mike Ritchie, General Manager, Marketing and Communications, SITA; NSW President, Waste Management Association of Australia

The conference will also feature the Environs Australia 'Local Government Sustainability Leadership Awards' ceremony. There are nine nine awards to recognise achievement in progressing sustainability at the local level. The awards will be judged by an independent panel from universities and local government authorities and will seek to reward sustainability innovation and achievement in Australia. The awards are structured at two levels 'Gold and Silver', and against two themes 'Council and Partnerships' as well as providing opportunities for smaller LGAs to be judged against their peers.

The 2008 conference is being supported by environmental leaders including FieldForce, Sita Environmental, KISS irrigation Systems, Earth Utility, CO Zero, Cardno, Landcom and Toyota Fleet Management.

The conference agenda is available here or contact Denise McQueen on (03) 8534 5021 or denise.mcqueen@halledit.com.au

For further information about the Local Government Sustainability Leadership Awards, go to www.environs.org.au

Good early response to Council Conversations on Constitutional Recognition

So far ALGA has received feedback from 59 councils that have taken part in Council Conversations - 40 electronically and 19 other responses. ALGA President Cr Paul Bell urged all councils to have their say.

The input from the conversations will inform the development of the business papers for the Local Government Constitutional Summit to be held in Melbourne 8-11 December 2008.

In its simplest form we need to know:

1. whether your council supports constitutional recognition of local government
2. your views on what your council would like to see achieved from constitutional recognition of local government
3. what your council wants like to see in the Australian Constitution
4. what you think we need to do to gain sufficient community support to win a referendum, if and when one was put to the Australian people.

To assist us in this plan, we need input from all councils on a number of key issues. You can help by conducting a 'conversation' within your council on this topic. Materials, including facts sheets, to assist you and your council to conduct this conversation are available on the web for download. Feel free to copy and distribute this material.

In providing feedback councils should consider:

• The relative benefits to your community
• The likelihood of gaining Commonwealth support for each objective
• The risks of taking multiple or complex issues to the electorate
• The likelihood of opposition.

Councils are asked to complete an online feedback form

The Coalition's position on climate change

Opposition Leader Brendan Nelson announced this week the Coalition's position on climate change. This is critical, as the Government's legislation will require support from Coalition Senators or the Greens and Independents to become law.

Mr Nelson said the Opposition supported in principle an Emissions Trading Scheme (BTS) as part of a three pillars approach to combating climate change: Clean Energy Policy; International Pressure; and an ETS. He said the Coalition would 'vigorously scrutinise' the Government's legislation based on detail; modelling; the impact on the cost of living; and international developments.

He said Australia must be part of a global response to reduce emissions and the Coalition would not support a flawed Emissions Trading Scheme, nor would it support an ETS too far ahead of the rest of the world. The Coalition?s position was:

• An ETS should commence when it is ready in. an orderly, methodical and responsible manner which enjoys the broad support of Australian industry and protects vulnerable Australian households - not before 2011 and probably by 2012;
• The design detail of an Australian ETS must be informed by the outcome of the Copenhagen meeting at the end of 2009;
• The carbon price must be set at a level that reflects action by the rest of the world; and
• If no action is underway - Australia must start an ETS slowly, and low on price.

Launceston, Ballarat and Shepparton roundtables

The House of Representatives Infrastructure and Transport Committee is conducting a series of roundtables and public forums in Tasmania and Victoria as part of its inquiry into a new regional development funding program.

The roundtables will discuss a possible framework and future administrative arrangements for the Government?s Regional and Local Community Infrastructure Program.

Roundtable participants have been invited by the Committee to discuss a range of issues highlighted in the Committee's discussion paper which is available on the Committee's website. Members of the public are welcome to observe the roundtable proceedings.

At the end of each roundtable, the Committee has set aside one hour for an open session where anyone can speak with the Committee about issues relating to this inquiry.The Committee will be visiting Tasmania and Victoria for the next series of these roundtables and forums and will be in the following locations during the week of 4 August 2008:

• Launceston, Monday, 4 August 2008, Hotel Grand Chancellor, Chancellor Room 2, 29 Cameron Street;
• Ballarat, Wednesday, 6 August 2008, BEST Employment - Banksia Room, 28 Victoria Street; and
• Shepparton, Friday, 8 August 2008, Eastbank Centre - Alex Rigg Meeting Room, 70 Welsford Street Roundtable discussions will be held between 9.00am and 12.30pm with the public forums to follow for one hour (12.30pm - 1.30pm).

Further information and advice on making submissions, can be found here.

For background information: Please contact the Committee Secretariat on (02) 6277 2352 or by email at itrdlg.reps@aph.gov.au

ALGA's talks on health reform

ALGA met with the National Health and Hospitals Reform Commission on Wednesday 23 July to exchange views on health reform. The Commission was established in February 2008 to develop a long-term plan for health reform and provide a final report to the Federal Government in June 2009.

The Committee noted that it had received hundreds of submissions proposing reform to the health system with many submissions touching on local government's roles and responsibilities. The Committee has received a submission from the Municipal Association of Victoria and had the opportunity to engage with ALGA in a wide ranging discussion on public and environmental health, planning, community well-being and community infrastructure. The Committee did note however that it would welcome greater engagement with local government through individual councils which might wish to put forward their own views on health reform, including changes to roles and responsibilities. The Committee's website is www.nhhrc.org.au.

Report backs formal recognition, fair funding

It's time local government's future was secured by formal recognition in the Australian constitution and a guaranteed share of national taxation like the states receive through the GST, according to Professor Percy Allan, the Chair of Review Today which commissioned the FiscalStar survey into the financial sustainability of NSW councils.

Professor Percy argues that with local government confined to only 5% of general government end spending, its time its future was treated seriously. He said that recent data shows that in 2006 local government expenditure as a share of GDP was only 2.3% in Australia compared with 15.1% in Japan, 12.9% in the UK, 12.7% in the EU and 8.5% in the USA. "Although Australia is a very large country we don't entrust much power, let alone resources to our third tier of government," he said.

The report says some NSW councils are so strapped for cash they may have to increase rates by up to 200 per cent in the next 10 years to keep operating. It has found 35 councils will have to raise rates and charges by between 80 and 200 per cent and another 19 councils by 60 to 80 per cent to address the funding shortfall. Professor Percy urged "each council to take charge of its destiny by identifying its service and infrastructure needs and devising a long-term strategy and financial plan as councils do in New Zealand." "By exploring its sustainability in terms of services, infrastructure and finances, a council can develop a business case for increased funding to put to its community and the Minister for Local Government. Some councils have already done this with success." The FiscalStar report can be downloaded from www.reviewtoday.com.au

The President of the Local Government Association, Cr Genia McCaffery, said councils were at financial breaking point and struggling to provide the services and facilities their ratepayers need and deserve.

The President of the Shires Association, Cr Bruce Miller, said it was time for Governments to act. "The removal of rate pegging and a greater share of federal taxation are part solutions, but the State Government also needs to stop cost shifting and start supporting local councils and their ratepayers," he said. The Associations again called on the Department of Local Government to continue its review of the way councils manage their assets so that infrastructure data is improved.

National Enrol to Vote Week

The Australian Electoral Commission's national Enrol to Vote Week runs until Sunday, 3 August 2008. Enrol to Vote Week aims to get eligible young people on the electoral roll and ready to vote in federal, state or territory and local government elections.

The Australian Electoral Commission is supporting Enrol To Vote Week by providing enrolment forms, educational resources, promotional materials and other information to schools and on the Enrol to Vote Week website.

To find out more about Enrol to Vote Week activities, visit the website or call the AEC on 13 23 26.

No Nuclear Waste Dump position welcome

National and Territory environment groups have welcomed Territory Labor's announcement that Labor Party opposition to the imposition of a national nuclear waste dump on the Northern Territory will stand strong. The Australian Conservation Foundation said the upcoming NT election provided the opportunity for Territorians to send a clear message to Canberra that they don't want a nuclear waste dump imposed on the Territory.

Call for inspection of pool fences to stop child drownings

Poorly maintained fences and lack of adult supervision mean as many children are drowning in backyard swimming pools in NSW as a decade a go, a report has found.

The NSW Commissioner for Children and Young People Gillian Calvert has conducted the first study into child deaths in NSW, finding an almost 38 per cent reduction in child deaths between 1996 and 2005.

Ms Calvert said the drop was significant, but at the same time the number of children drowning in swimming pools remained steady.

"We didn't see a change in the deaths over the 10-year period, yet these are very preventable deaths," she told reporters today.

"When we looked at why, what we found was it was a combination of poor parental supervision plus poorly maintained gates and fences so that children could access the pool without the parent knowing."

She has recommended local councils regularly inspect all swimming pool fences across NSW to ensure they comply with the state's fencing requirements. (AAP)

National Rural Health Conference

The 10^th National Rural Health Conference will be held from 17 - 20 May 2009 at Cairns Convention Centre. All information on the website www.ruralhealth.org.au.

South West 1 wins Earth Award

Leading the way in innovate construction and environmental design, Logan City Council's South West 1 development has been awarded the Earth Award by the Civil Contractors Federation (Queensland).

The Civil Contractors Federation Earth Awards are designed to highlight distinction in construction technique, as well as environmental and project management. Logan City Council will now be eligible for a national award, to be announced later this year.

For more information on South West 1, visit www.logan.qld.gov.au

Aged Care staffing levels

The Minister for Ageing, Mrs Justine Elliot, said it was currently the responsibility of the aged care homes to ensure that there were adequate numbers of appropriately skilled staff to meet the individual care needs of residents.

She said the Australian Government was committed to examining staffing levels in nursing homes based on the care needs of residents after the impact of the new Aged Care Funding Instrument (ACFI) on aged care financing are understood. "Since this will affect approved providers, residents, their families, unions and staff, we want to talk to all those groups," she said. The Aged Care Act 1997 (the Act), Section 54-1 (1) (b) sets out the requirements of aged care providers in relation to staffing. It says approved providers are required to maintain an adequate number of appropriately skilled staff to ensure that the care needs of all care recipients are met. Under the Aged Care Standards and Accreditation Agency?s Standards, Outcome - 1.6 Human Resource Management also require that there are appropriately skilled and qualified staff sufficient to ensure that services are delivered in accordance with these standards.

Transparency on Indigenous spending

Prime Minister Kevin Rudd has said he wants "transparency" in Indigenous spending, following allegations the Northern Territory government has misspent billions of dollars of federal grants.

Documents from the Commonwealth Grants Commission allegedly show the NT Government received $218 million last year for Indigenous services but spent only $110 million.

Speaking in Arnhem Land last week, where Federal Cabinet met for the first time in an Indigenous community, Mr Rudd said an agreement had been reached at the Council of Australian Governments (COAG) meeting earlier this year.

"What we've been on about since we've been in government about the question of the dispersal of funds across the states and territories for Indigenous programs is, for the first time in the country's history, the Commonwealth are putting together a proper system of transparency across all government," he said. "We are due to receive a report back through the Premiers and Chief Ministers at the first COAG of next year on all of that."

The NT Government has denied allegations that since 2001, billions of dollars of Commonwealth funding has not reached the key areas of health, child care, public safety, regional projects and corrective services. NT Chief Minister Paul Henderson has rejected calls for an independent investigation into his government's spending, saying independent reports had already established that 50 per cent of the Territory budget was spent on Indigenous people.

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