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Posted on 10 May, 2021

Budget measures a timely boost for Local Government’s key role in jobs recovery

The Australian
Local Government Association (ALGA) has welcomed the Federal Government’s
endorsement of the key role councils are playing in creating jobs and supporting
local communities by leading a locally led economic recovery from the COVID
pandemic.

ALGA President Councillor Linda Scott said the key measures outlined in last night’s Federal Budget, including a $1 billion investment in local government community infrastructure and road projects, via the Local Roads and Community Infrastructure (LRCI) Program, will enable local governments to ramp up their locally led economic development work, creating more jobs and enhancing community wellbeing for the public good.

“Local government capacity
to create jobs and support Australians during the pandemic has been on display
since last March when we put measures in place to protect and support our most
vulnerable residents from the pandemic while rolling out shovel-ready
infrastructure projects to cushion local economies,” Cr Scott said.

“The Australian
Government’s decision to boost investment in council-led infrastructure, roads
and transport shows they have listened and responded to ALGA’s advocacy, and
that they value the work that Local Government has undertaken over the past 15
months – on its own and as a preferred partner with the Commonwealth,” she
said.

Communities are
also increasingly demanding local government action to address dangerous
climate change, and Cr Scott said the sector was heartened by Budget measures
establishing a new national recovery and resilience agency, with $600 million
to invest in disaster preparation and mitigation.

This funding will
support resilience projects across communities, including building flood
levies, hardening telecommunication infrastructure, and building more bushfire
and cyclone-proof buildings.

“One dollar spent
on mitigation can save at least $2 in recovery costs. Councils will continue
advocating for the creation of more Federal Government funding for local action
to address climate change, and a disaster mitigation fund of $200 million a
year over four years,” Cr Scott said.

Cr Scott commended
the Government for allocating $250 million in new Budget funding for Building
Better Regions (BBRF). This is $50 million more than previous allocations, and
the largest funding commitment to councils to date.

“Our communities
understand that while the Commonwealth brings a much-needed national
perspective to economic recovery, support and stimulus measures must be
tailored to meet the unique circumstances of each place and each community.

“Councils have the
capacity and the local knowledge to deliver the place-based solutions that
communities expect,” Cr Scott said.

The Budget
announcement that $1.3 billion of Financial Assistance Grants will be prepaid is
also welcome news for the many councils now facing budget shortfalls as a
result of going above and beyond for their communities over the past 15 months.

“While we welcome
the Commonwealth Government’s decision to bring forward its Financial Assistance
Grants, local governments need to see significant increases in this untied
funding to boost locally led jobs growth in Australia,” Cr Scott said.

“We will continue to strongly advocate for a return of Financial Assistance Grants to 1 percent of Commonwealth taxation revenue, in order to support local governments and our communities,” she added.

ENDS