IT’s not often Lyne’s federal candidates from opposing parties agree, but when it comes to Financial Assistance Grants (FAGs) across metropolitan and regional councils, they are unanimous: something needs to change.
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Crossing-over both Federal and State levels, federal money is distributed by the NSW Grants Commission according to population and infrastructure. MidCoast Council will receive the total amount of Gloucester, Greater Taree and Great Lakes councils combined.
State member for Myall Lakes Stephen Bromhead says the funding distribution is “made on the basis of councils’ day-to-day operational costs.” While current federal member David Gillespie stops short of criticism he advocates for change. “My State colleagues should revisit the way these funds are distributed to local councils by changing the formula to one that is more focused on the infrastructure task of councils rather than its population base,” he said.
Labor candidate for Lyne Peter Alley agrees. “The formula used to allocate grants to councils needs to be urgently changed to reflect this growing divide… I will certainly be lobbying for such a change at federal level and will be lobbying the local State members to... change their grant formulas.”
Independent candidate and former Taree councillor Brad Christensen also made past presentations in Canberra on the topic. “It is based on population instead of road length. So the big end of town again get the majority of the pie,” he said. “As far as rural, regional councils receiving appropriate funding, this will not happen with the way our representatives stand up for our areas.”
For Greens candidate Julie Lyford, council financial viability is a three tiered process.
“By removing the FAG indexation freeze [costed at $300 million per year], installing a fairer system of funding distribution and stopping cost shifting [resulting in $670 million shifted from federal and state to local government in 2013/14] you put local government on a much sounder financial footing and eliminate the need to raise more income,” she said.
Changes to how federal Financial Assistance Grants (FAGs) are distributed amongst councils is not a universally embraced ideal. Representing both metropolitan and regional councils, Local Government NSW supports change but is happy with the current formula.
