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17 Apr 2015

FAGs - Funding our communities

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Councils across Australia recently received the third quarterly payment of Commonwealth Financial Assistance Grants (FAGs) for this financial year.  FAGs are an important untied payment to councils from the Federal Government which are invested in essential community infrastructure and services ranging from local roads and parks to swimming pools and libraries.

ALGA's 2015 Federal Budget submission called on the Federal Government to reverse its decision to freeze the indexation of FAGs.  Importantly, the Federal Budget submission continued the call for the Federal Government to consider the adequacy of the quantum of FAGs and the indexation methodology in the future.

ALGA is concerned that the proportion of Federal tax revenue that FAGs represent is shrinking. In 1996 FAGs represented around 1% of total Federal taxation revenue, this had dropped to 0.67%in 2013. Taking into account the indexation freeze, that number will drop towards 0.53% in 2017-18. This will have significant impacts on the capacity of councils to deliver services at a time when financial resources are already strained.

Local government across the country is united in its determination to see this freeze reversed. ALGA is working with state and territory associations and councils to make sure that Federal MPs fully understand the impacts of the freeze in their electorates.

Federation and Taxation considered at COAG

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Today, ALGA President Mayor Troy Pickard, attended the Council of Australian Government's (COAG) meeting in Canberra. The discussions at the meeting around the Federation and Taxation White Papers will include the roles and responsibilities of each level of government, GST and taxation collection and tax sharing arrangements.

ALGA is actively involved in both the Federation and Tax White Paper development and will be making submissions throughout the processes.  It is important for local government that the White Paper processes help councils continue to maintain the services and infrastructure they have been delivering to communities. 

Reducing violence against women is also on the COAG agenda. All governments are determined to eliminate violence against women and continued collaboration between the Commonwealth, the states and territories, and local government is crucial in achieving that objective. Today's meeting will build on previous COAG work such as National Plan to Reduce Violence against Women and their Children and the Advisory Panel on violence against women.

National General Assembly Call for Motions deadline 28 April

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The National General Assembly (NGA) is your opportunity to contribute to the development of national local government policy. The ALGA Board is calling for motions for this year's NGA under the theme Closest to the Community: Local Government in the Federation.

Motions that are agreed at the NGA become Resolutions. These Resolutions are then considered by the ALGA Board when setting national local government policy and when the Board is making representations to the Federal Government at Ministerial Councils, during meetings and in ALGA publications.

To assist Councils in preparing motions a Discussion Paper has been prepared and is available here.

The deadline for submitting motions, 28 April, is fast approaching. You can find information on submitting your council's motions here.

President's Column

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Last week, in collaboration with the Presidents of the State and Territory Associations, I wrote to all councils encouraging them to join the campaign to restore the indexation of the Financial Assistance Grants (FAGs).  In particular, we asked every council to pass a resolution acknowledging the importance of the FAGs in delivering vital local services and infrastructure, and ensuring the positive impacts of these payments are publicly acknowledged.

The decision to freeze FAGs for three years will cost councils an estimated $925 million by 2017-18 and result in a permanent reduction in the FAGs base of around 13%. These grants are a vital part of the revenue base for councils and they are used to fund essential local services and infrastructure.

With the Federal Budget only a month away, it is important that the Federal Treasurer continues to hear how important it is to reverse the freeze on FAGs indexation and avoid councils having to reduce services or increase rates. Over the coming weeks, I am encouraging councils to talk with their Federal MPs to ensure that they have all the facts on what this freeze means for councils and communities in their electorate.

The impact of the freeze at the council level is clearly illustrated by looking at the experience of Cootamundra Shire Council in NSW. The Cootamundra Council will receive around $8 million in FAGs during the freeze period. However, this is around $1 million less than it would have received without the freeze. Council has reported that this equates to a loss of almost 43% of Council's roads renewal budget in 2017/18 and beyond. Council is working through how best to deal with such a significant funding shortfall with every realistic option being considered.

This is the real impact on the ground. Across Australia, the impacts will be substantial. ALGA will continue to advocate that the indexation of FAGs should be restored immediately. This is important for every Australian community and for the financial sustainability of our councils. We must build momentum for our campaign and ensure that the Federal Government and MPs are fully aware of the consequences for local communities.

Future role and contribution of regional capitals to Australia - submissions close 30 April

On 11 February 2015 the Senate moved that the  Senate Rural and Regional Affairs and Transport References Committee inquire into the future role and contribution of regional capitals to Australia. The Inquiry is seeking to assess the current demographic trends and the changing role of regional capitals; look at funding provided to regional capitals; analyse the benefit and mechanisms of additional funding based on population, demand for services and their strategic importance for the region, state or country as well as opportunities to grow regions and policy measures to support this.

The committee is interested in receiving submissions not just from representatives of regional capitals, but also from other towns and cities who have relevant views to express about the current and future role of regional capitals. Any person, organisation, town or city may contribute to the inquiry through making a submission by 30 April 2015. More information can be found here

Bushfire and Natural Hazards Research Advisory Forum

Over 100 researchers and end user representatives participated in the first Bushfire and Natural Hazards Research Advisory Forum for 2015 in Sydney on the 8 - 9 April 2015.

This forum focused on resilience, examining a range of issues particularly relevant to local government  such as the economics of natural hazards, a system for assessing the resilience of Australian communities to natural hazards, decision support systems for assessment of policy and planning investment options for optimal natural hazard mitigation, child centred risk reduction, managing animals in disasters and enhancing resilience of critical road infrastructure.

The Bushfire and Natural Hazards Cooperative Research Centre was established in July 2013 with an investment of $47million over eight years. Local government is acknowledged as one of the key end users and interested councils are encouraged to participate in the work through partnerships or as interested stakeholders in ensuring the research outcomes will make a difference a practical and beneficial difference to the lives of Australia's diverse communities. More information can be found here.

CSIRO climate tool sketches future

A new online tool released by the CSIRO shows how global warming could change climate conditions in hundreds of towns across Australia. Climate Scientists at CSIRO have examined what Australia could look like by 2030, 2050, or 2090.

According to the tool, eastern Australian coastal sites could see a climate shift to those currently typical of locations hundreds of kilometres north along the coast. Sydney's climate could resemble that of Port Macquarie and towns in major inland agricultural areas could have climates typical of inland areas further north, such as Griffith's climate shifting to that of Cobar, a town around 300km north, under an "intermediate emissions" scenario.

The change in climate is much greater by 2090 and under a "high emissions" scenario. In this case Melbourne's climate could then be more like that of Dubbo, Griffith's more like that of Bourke (600 km away) and Sydney's more like Brisbane.

More information about the climate tool can be found here.

First Direct Action auction underway

The first reverse auction of the new Emissions Reduction Fund (ERF) was undertaken this week. This reverse auction is the mechanism by which the Federal Government will select those successful in receiving part of a $2.5 billion funding pool to get businesses and other organisations to reduce their emissions.   It is unclear to what extent local government will participate in this and future auctions.  

ALGA has previously outlined a number of technical issues with the design of the auction system that could limit council participation in the program. ALGA will continue to monitor the auction process and advocate for appropriate changes to the Fund if further reforms are necessary to ensure local governments are able to engage fully and play their part in reducing emissions.

More information on the ERF and the reverse-auction mechanism can be found on the Department of the Environment.s website.

North Qld mayors demand disaster funding answers

A group of north Queensland mayors is demanding the Federal Government reveal its position on a proposed overhaul of disaster funding arrangements.

The Government is due to respond to a Productivity Commission report by the end of next month, which recommends the Commonwealth reduce its share of disaster recovery funding from 75 per cent to 50 per cent.

The President of the Local Government Association of Queensland, Margaret de Wit, said councils were developing their budgets now and needed certainty from the Government. If the report is adopted the measures would force councils to increase rates or leave damaged areas in ruins for months until they could afford repairs.

Truck and dog trailer notice

The National Heavy Vehicle Regulator (NHVR) is responsible for issuing all new national road access notices and permits under the Heavy Vehicle National Law (HVNL).

The NHVR is currently working with state jurisdictions to finalise the heavy vehicle preliminary National Notice for Performance Based Standards (PBS) Level 1 and 2 Truck and Dog Trailer heavy vehicles.  Around 90 local councils have already contributed to this process by issuing pre-approvals for, or their previous gazettal of, these heavy vehicle types on their local road networks.  This approach will streamline road access arrangements for transport operators using these vehicles, as well as reduce the regulatory and administrative burden on local councils in managing their road networks.

This national notice is applicable to all PBS truck and dog trailer combinations with 3 or 4 axle rigid truck towing a 3, 4 or 5 axle dog trailer. This national notice when promulgated will cover preliminary state and territory road networks, encompassing PBS Level 1 and 2A routes currently covered under a pre-approval with any road manager, including local governments.  Future work will focus on targeting other roads that are not currently included in these preliminary networks. For more information visit the NHVR's website here.

No Jab - No Play or pay

The Commonwealth Government will end the conscientious objector exemption on children's vaccination for access to taxpayer funded Child Care Benefits, the Child Care Rebate and the Family Tax Benefit Part A end of year supplement from 1 January 2016. This means that vaccine objectors will not be able to access these government payments.

Existing exemptions on medical or religious grounds will continue, however a religious objection will only be available where the person is affiliated with a religious groups where the governing body has a formally registered objection approved by the Government.

The new policy will tighten up the rules and reinforce the importance of immunisation and protecting public health, especially for children.

For more information on child care assistance and family payments, visit www.humanservices.gov.au.

New campaign to boost early breast cancer detection

Minister for Health Sussan Ley this week launched the$55 million campaign 'An invitation that could save your life' to make sure all Australian women aged 50 to 74 were aware they qualified for a free breast screen every two years.

Ms Ley said this also marked the first time Australian women aged 70 to 74 have been specifically targeted for breast screening awareness, with an additional 220,000 breast screens expected to be delivered over four years as a direct result. Breast screening saves lives. It is the second most common cause of cancer-related deaths among women in Australia, however if detected early and managed nine-out-of-10 cases can be successfully treated.

The Government's $55 million commitment will cover the cost of the promotional campaign, as well as the cost of additional invitations and free breast screenings generated as a result.

More information is available here.

Road Safety - one of the most pressing issues facing society today

Whilst advances in road design and vehicle safety have no doubt made a significant contribution to reducing road trauma, it is clear that a vital piece of the puzzle is still missing because the fatalities and injuries continue.  Community ownership of the road safety is vital if we are address this issue.  

Since its inception in 2007 the Fatality Free Friday campaign has continued to expand its operation and is now recognized as Australia's only national community based road safety program. It has successfully fostered community ownership; complex road safety issues and encourages those who can make a significant difference in reducing road trauma.

Councils are being invited to participate by joining the Fatality Free Friday Alliance. Joining the Alliance is a way to express your region's commitment to cutting deaths and injuries on Australia's roads. For a relatively small contribution to cover costs, your council can become a Fatality Free Friday Alliance Partner for 2015 and will receive a range of benefits including promotional items and corporate acknowledgement. More information is available here.

Boards encouraged to adopt 30 per cent target for female directors

The Australian Institute of Company Directors (AICD) is calling for all boards to ensure that 30 per cent of their directors are female and urges S&P/ASX200 companies to meet this new target by the end of 2018.

AICD Managing Director and Chief Executive Officer, John Brogden, said the new objective will help companies more quickly reach the critical mass required to produce the optimal business benefits of board diversity.

"There is an undeniable case for gender diversity on boards. It is not only the right thing to do but the smart thing to do, because it means better business performance. Numerous pieces of research demonstrate a positive link between the level of female representation on boards and improved corporate performance.

"The 30 per cent target will apply to all company structures, as the AICD has a broad membership of over 35,000 that extends well beyond the top listed companies to small ASX entities, private business and not for-profit organisations," he said.

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At the Conference, held 11-12 June on the Gold Coast, you will hear from amazing keynote speakers:

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There will also be targeted presentations on sponsorship, effective marketing and promotion and of course time for networking, so register now!

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ALGA News can be read online each week at www.alga.asn.au/news.aspx
Editor: newscomments@alga.asn.au Tel: 02 6122 9434.
Australian Local Government Association - 8 Geils Court, Deakin, ACT, 2600.
Copyright © 2001 Australian Local Government Association. ISSN 1447-980X
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