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Submission to the Independent Inquiry into the Financial Sustainability of NSW Local Government

Last week, Council presented its submission to the NSW Local Government and Shires Associations independent inquiry into the financial position of local government in NSW, examining its capacity to meet current and future community needs.

The inquiry is being chaired by the former head of NSW Treasury, Professor Percy Allan AM, and supported by independent analysis from Access Economics. It was prompted by widespread concern over the ongoing sustainability of local government services and the interaction between the three spheres of government.

Our submission highlighted many issues affecting our community ranging from the financial capacity of Council, cost shifting from state and federal governments, condition of local infrastructure, and the implications of urban planning strategies.

The NSW Government has significant impact upon the sustainability of local government by placing unreasonable demands upon our resources and finances, and in particular through unworkable legislation.

Councils are experiencing increasing difficulty with new government legislation that fails to work effectively because it has not been sufficiently checked out before introduction. We are not being consulted about the likely impacts of proposed legislation and subsequently waste considerable resources until it is amended.

For instance, Public Private Partnerships Legislation now impacts on every community project involving Councils and non-profit organizations such as the local Lions Club or Rotary Club installing a seat in a park. The legislation was not meant to capture these little projects and it presents an unnecessary red tape for Councils and small communities. 

Similarly, Council has been extensively involved with the NSW Rural Fire Service regarding Planning for Bushfires Protection due to serious shortcomings with that document. Hundreds of hours of staff and Councillors time has been expended with the NSWRFS endeavouring to get the right outcomes, which if the legislation were properly managed at the outset would have also avoided much grief for landholders.

Other concerns included the unreasonable delay with gazettal of our Draft LEP 2005 has caused substantial hardship for Council and the community with the hiatus between planning instruments wasting time and money, and resulting in lost opportunities. This document has been sitting on the Minister`s desk for 12 months awaiting signature after having run the full gambit of scrutiny by the public, government agencies and Parliamentary Counsel.

Also, heavy vehicle traffic associated with the SRA quarry at Martins Creek are hammering our roads, and we will probably have to take this recalcitrant government agency to court before we receive proper ongoing compensation.

However, the issue of greatest concern is the poor condition of our Regional Roads and the unreasonable and inequitable burden placed upon our community.

In 1995 they were transferred to Council in poor condition with no new income source being provided for us to meet a new requirement for contributing 50% of rehabilitation costs, which results in funds being diverted from local road projects.

Some $21 Million is required in today`s terms to bring the network up to a satisfactory standard, and because the RTA formula fails to deliver adequate funding for maintenance of these roads, their condition is deteriorating. The RTA and Police are reducing speed limits accordingly.

Council is also supposed to set aside $258,000 p.a. to cover depreciation of these roads. In our case, a rise in general rates of about 15% would be required to meet these responsibilities.

Combine this with the fact that 90% of the network is ineligible for rehabilitation funding from the RTA, and you have an unsustainable situation with the NSW Government putting its head in the sand.

The final report of the inquiry is scheduled for May 2006.

Contact details
Dungog Shire Council
02 4995 7777 (ph)
02 4995 7750 (fax)
shirecouncil@dungog.nsw.gov.au

© 2008 Dungog Shire Council
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