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15 May 2015

Roads to Recovery and Black Spots funding to double for next two years

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Recognising the important role local government plays in managing and maintaining our local roads network, the Budget this week showed the Government maintaining its commitment to double Roads to Recovery (R2R) in 2015-16 and provided further Black Spots funding for the next two years.

R2R funding will double, with $700 million allocated to councils in 2015-16 to support the maintenance of local roads to facilitates greater access for Australians and improved safety, economic and social outcomes.

R2R allocations for the councils in each jurisdiction will follow the same methodology used in previous R2R rounds. A full list of allocations to councils over the next five years can be found here.

The Black Spot Programme aims to reduce crashes on Australian roads. Black Spot projects target those road locations where crashes are occurring, funding measures such as traffic signals and roundabouts at these locations.

The Government has committed $500 million to the Black Spot Programme from 2014-15 to 2018-19, which includes an additional $200 million over two years from 2015-16.

There are also changes to the programme's eligibility criteria for 2015-16 and 2016-17. Under the new criteria, the minimum Benefit Cost Ratio for proposals has been reduced from 2:1 to 1:1. In addition, the minimum crash history of sites has been reduced from 3 to 2 casualty crashes over five years or 0.13 casualty crashes per kilometre per year over 5 years. The criteria have also been amended to allow more funding for the proactive treatment of unsafe roads.

The Government has guaranteed that at least 50 per cent of funding provided over the next two years will be dedicated to fixing roads in regional Australia.

For more information on the Black Spots Programme click here

Financial Assistance Grants to Local Government

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In the 2015-16 financial year, the Australian Government will allocate $2,289 billion in Financial Assistance Grants (FAGs) for local government services to the community.

The freeze on indexation announced in the 2014-15 Budget remains in place, the impact of this freeze was estimated last year to be $925 million in lost FAGs in the four years to 2017-18. In 2017-18, indexation is projected to be re-instated, by which time the annual funding base is estimated to be 13% lower than it would have been without the impact of the freeze.

The Budget doesn't reduce the impacts on communities from the freeze and ALGA will be advocating in the lead up to the 2016 Budget and the next Federal Election that the freeze should be lifted immediately. This issue will be part of discussions at the 2015 National General Assembly of Local Government (NGA). The Assembly is your opportunity to share your views and concerns about this and other national issues. The Assembly program is almost finalised and promises a strong and diverse discussion about local government's role in the community, in the tax system and in the Federation. Click here for more information about the program, registration and speakers.

FAGs continues to be provided in two components, general purpose assistance grants and untied local roads grants. Both components of the grant are provided as untied funding allowing councils to spend the grants according to local priorities.

A breakdown of FAGs allocations by jurisdiction is below.

Financial Assistance Grants to local government by jurisdiction2015-16

Financial assistance grants

NSW
$m

VIC
$m

QLD
$m

WA
$m

SA
$m

TAS
$m

ACT
$m

NT
$m

TOTAL

$m

General Purpose Assistance

507.2

394.6

318.7

174.5

113.3

34.5

26.0

16.5

1,585.3

Untied Local Road Funding

204.1

145.0

131.8

107.6

38.7

37.3

22.6

16.5

703.4

TOTAL

711.3

539.6

450.5

282.0

151.1

71.8

48.6

33.0

2,288.7

More information on FAGs and the 2015-16 allocations is available here.

Applications for round two of Stronger Regions opens today

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The National Stronger Regions Fund (NSRF) will provide funding of $1 billion over 5 years to fund priority infrastructure in regional communities. Grants of between $20,000 and $10 million are available to local government and incorporated not-for-profit organisations.

Round two opens today and will close on 31 July 2015. Grant funding must be matched in cash on at least a dollar for dollar basis.

Grants will be provided for capital projects which involve the construction of new infrastructure, or the upgrade or extension of existing infrastructure. The project must deliver an economic benefit to the region beyond the period of construction. Projects should support disadvantaged regions or areas of disadvantage within a region. The NSRF funded component of the project must be completed on or before 31 December 2019.

The first round of NSRF will see 51 projects worth approximately $212 million commence in 2015-16. A full list of the round one projects is available here.

More information on the NSRF including the program guidelines is available here.

President's Column

TroyPickard4

There was some good news and some disappointment in this week's Budget for local government. The Government met its commitment to double the funding for the Roads to Recovery programme and provide additional Black Spots funding in 2015-16 but this was offset by the continuing freeze on the indexation of the Financial Assistance Grants (FAGs). 

The doubling of Roads to Recovery is an important boost to all councils who need help maintaining the first and last miles of our transport network, on which the nation relies to move goods and people. This doubling will see an extra $350 million in Roads to Recovery funding provided to councils next year and, in addition, Black Spots funding will increase from $60 million to $160 million.

The Budget also included the continuation of funding for regional and remote aerodromes under the Regional Aviation Access Programme with an extra $40 million to upgrade airstrips and boost air services for remote communities.

I was disappointed, however, that this much needed increase in investment in local infrastructure takes place against the backdrop of a continued decline in our core funding because of the ongoing freeze on the indexation of the FAGs.  During the three years of the freeze the Government will have reduced the base of the FAGs grants by an estimated 13% and, by 2017-18 when indexation is restored, around $925 million will have been foregone by communities around Australia.

ALGA has strongly advocated for the immediate restoration of indexation.  The Budget papers indicate that indexation of FAGs will be restored in 2017-18 but by then the impact on many councils will be substantial. Cootamundra Shire Council in NSW for instance 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.

Local government across the country is united in its determination to see indexation restored as soon as possible and 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.

Our objective must be to see an end to the freeze in 2016-17.  Doing so will limit the reduction in the base and restore around $200 million in FAGs funding to our communities.

This is important for every Australian community and for the financial sustainability of our councils. We must continue to build momentum for the early restoration of indexation and ensure that the Federal Government and MPs are fully aware of the consequences for local communities.

Regards

 

Mayor Troy PIckard
ALGA President

 

 

A successful advocacy partnership

The Australian Local Government Association, the Australian Airports Association and the Royal Flying Doctor Service recently joined forces to advocate for the continuation of funding for regional and remote Australian aerodromes under the Regional Aviation Access Programme leading up the Budget. Prior to the budget the Commonwealth had not committed to fund this essential programme beyond 2014-15.

Announced in the budget was the continuation of funding for regional and remote aerodromes under the Regional Aviation Access Programme and the allocation of $39.6 million to upgrade airstrips and boost air services for remote communities. The additional airstrip funding from 2015-16 will provide grants to assist safety and access upgrades at remote airstrips under the Remote Airstrip Upgrade Programme. The funding will be available to repair and upgrade runway surfaces, safety equipment such as runway lighting and navigation aids, and infrastructure such as fences and gates.

For more information on the Regional Aviation Access Programme click here.

Drought assistance for regional communities and farmers

Rural communities experiencing extreme drought will be eligible for Commonwealth assistance with a new $333 million support package. In recognition of the drought's effects on farming businesses and regional communities, the Government will provide:

  • $35 million for shovel-ready, local infrastructure and employment projects.
  • $25.8 million for programmes to manage pest animals and weeds in drought-affected areas.
  • $20 million to expand existing social and community support programmes.
  • $1.8 million to fund additional rural financial counsellors in drought-affected areas.
  • $250 million in 2015-16 to continue access to existing drought specific concessional loans schemes.

For information on the new drought support measures click here.

$100m to protect against national emergencies

Announced in the Budget was $100 million to improve Australia's ability to quickly and effectively respond to a health crisis caused by a natural disaster or terrorist attacks.

The funding included $34 million to replenish the National Medical Stockpile and $64 million to support the Darwin-based National Critical Care and Trauma Response Centre.

In a time of national emergency such as an influenza pandemic or a bio-terrorist attack the National Medical Stockpile is a key element in defending Australians.  In recent times we have seen disease threats like the bird flu pandemic and Middle East Respiratory Syndrome (MERS) outbreak, while last year was one of the worst flu seasons on record.

The $64 million funding extension in the National Critical Care and Trauma Response Centre is aimed at improving Australia's capability to respond to natural disasters like recent cyclones in northern Australia and Vanuatu.

New $100 million Northern Australia Beef Roads Fund

The Commonwealth Government will invest $100 million improving roads that are critical to the beef industry. A new $100 million Northern Australia Beef Roads Fund will make targeted upgrades to key roads necessary for transporting cattle. This will underpin the future viability of the cattle industry which has long been a pillar of the northern economy.

Moving cattle in the north, from farm gate to market, involves some of the longest land transport distances of any Australian commodity. Land transports costs in the northern beef industry comprise up to 35 per cent of the market price of livestock.

The Fund will rely on the CSIRO's state-of-the-art logistics modelling, which for the first time looks at the whole cattle supply chain--every farm, road, stopover, port and processing facility in the country. The modelling allows analysts to test different scenarios, such as how sealing a road will influence transport times and costs. Using this approach, targeted upgrades that improve one road 'link' can strengthen the entire supply chain.

Australia's first street sweeping recycling plant unveiled

Australia's first street sweeping recycling plant has been unveiled. The plant has the capacity to recycle 12,000 tonnes of street sweeping material per year equivalent of 240,000 green waste bins.

Located in central Melbourne and managed by Citywide, the facility will divert up to 80 per cent of collected material away from landfill for reuse and recycling. The plant sets the benchmark for environmentally sustainable street sweeping recycling. Diverting waste from landfill reduces greenhouse gas emissions and Citywide's street sweeping recycling plant takes this one step further by processing collected waste to create valuable by-products.

For more information click here.

National Volunteer Week 2015 launched in Canberra

National Volunteer Week 2015 was launched at the Museum of Australian Democracy on Monday 11 May.  The theme for the year is Give Happy, Live Happy - to recognise and celebrate that not only are volunteers helping make the lives of others happier, volunteers themselves are happier and healthier.

Volunteer Week celebrates the contribution of more than 6 million Australians who volunteer each year. At the launch, Volunteering Australia officially released the revised National Standards for Volunteer Involvement, which have been developed in consultation with volunteer organisations across the nation. The standards provide a framework for organisations to consider the role of volunteers within the organisation and the impact effective volunteer involvement can have on achieving the strategic goals and aims of the organisation.

For an copy of the national standards and for information on volunteering click here.

Audit assesses northern Australia's infrastructure

The Commonwealth Government has released the first Infrastructure Australia audit of northern Australia's infrastructure. The audit outlines the region's current infrastructure asset base and its potential long-term needs. It found that the population in northern Australia is projected to grow more quickly than Australia as a whole.

Reforms being undertaken to improve infrastructure planning, project appraisal and selection will complement the work of the audit. This work will assist in allocating funding to infrastructure projects that return the highest benefits to communities for a stronger and more prosperous northern Australia.

Celebrating brilliant business women in government

Women from all tiers of government are being urged to enter the 2015 Telstra Business Women's Awards which recognise brilliant business women who have pushed boundaries and achieved excellence.

In 2015 a new Award category Government and Academia will be introduced in all states and territories that is open to women in the Commonwealth, State and local governments and related organisations.

In their 21st year, the Telstra Business Women's Awards have rewarded and raised the profile of thousands of women across all areas of business, providing them with opportunities to meet, mentor and support other aspiring business women.

Nominations are now open for the Telstra Business Women's Awards, with entries open from 11 May to 29 June. For more information click here.

New CEO for Regional Australia Institute

The Regional Australia Institute (RAI) today announced Su McCluskey will be stepping down from her role as CEO at the end of June. Ms McCluskey is the RAI's inaugural CEO and has been pivotal in establishing the Institute as the authoritative voice of regional Australia.

The RAI Board has appointed the Institute's Deputy CEO, Jack Archer, to the position of CEO, commencing on 1 July 2015.

Neighbour Day Save the Date - 27 March 2017

Neighbour Day 2015 recorded the largest number of registered events with close to 70,000 people celebrating their neighbourhood on Sunday, 29 March. Event registrations were up by 63% from 2014 to 556 this year. Participation numbers increased 134%, with many more joining in with unregistered events.

Local councils were key partners in Neighbour Day activities this year with many people indicating they heard about local events via their council website, flyers or media.  Big thanks are due to all the councils that became involved in Neighbour Day 2015.

Now is a good time to note Neighbourhood Day in your calendar for next year - 27 March 2016. For more information on Neighbourhood Day click here

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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