By Adam Coleman in Canberra

While 2006 has been a landmark year for local government with momentum created from the Australian Local Government Association’s (ALGA) ‘3Fs’ campaign for formal recognition, fair treatment and fair funding, local government must work together to alleviate the ‘severe financial pressure’ facing local communities and regional economies across the nation.

That is the message of Australian Local Government Association (ALGA) president Paul Bell, who in his opening address at the 2006 National General Assembly in Canberra today (November 28), said the conference’s theme – Pushing the Agenda –  emphasised the need for local government to build on its achievements thus far, “which is crucial as we head into a federal election following the 2007 Budget”.

“In relation to two of the ‘F’s’ – Fair Treatment and Formal Recognition – we have had a year of milestone with strengthened partnerships, the signing of the IGA to stop cost shifting, and the historic parliamentary resolution on recognition of local government passed by the House of Representatives and the Senate recently,” he says.

While celebrating local governments’ achievements in 2006, Cr Bell cautioned that the focus should remain on the financial sustainability challenges ahead.

“In particular, we must continue to present a strong, well-articulated case for the other ‘F’ – Fair Funding," he says.

According to Cr Bell, there is a critical need for a partnership with Federal and state governments to provide funding to councils for community infrastructure renewal.

“We are looking for a partnership – a partnership to assist us to provide the services to our communities that they deserve," he says.

“Over the past year, we have forged deeper partnerships with the Federal Government in health, the environment, emergency and disaster management and aged care. Areas we would like to work more closely with the government on are urban transport, airport planning, and coastal zone management."

Cr Bell says it is imperative that local government capitalises on successful partnerships with the other spheres of government and has the opportunity to present a strong case for further funding, based on a solid and proven track record.   

He also announced that constitutional recognition of local government will be progressed by convening a constitutional summit of local government leaders at Parliament House in 2008 to map out a path toward gaining constitutional recognition.

“However, we can not call for a third referendum until we have full community and bipartisan political support. Next time, we will pull it off – we can not afford to fail," he says.

Cr Bell called the inter-governmental agreement (IGA )agreement the first ever agreement between all spheres of government – the Commonwealth, all state and territory governments and local government – a truly historic milestone in achieving fair treatment and progressing the way the spheres of government do business together.

“More importantly, it sets up a framework where no longer other levels of government can simply add to local government’s responsibilities without, negotiating with us first, addressing the funding issues, and finally setting up a mechanism to ensure that any new arrangement is working,” he says.

“If we can stop cost shifting onto local government, local government and our communities will be much better off."

The Minister for Local Government, Jim Lloyd, suggested the relationship between local and theFederal Government is built on a “solid foundation” and  is “very much a financial relationship”, referencing the more than $2 billion of funding the Federal Government contributes to local government each year. 

The Minister says that while the pressure is on the Federal Government to take action and assist local government, there may be an opportunity for further assistance fro the states.

“I noticed as I looked through your assembly business papers that 39 of the 46 resolutions called for action by the Australian Government in one form or another,” he says.

“I would also remind you that local government is a creature of state government legislation. As I travel around Australia there is an increasing tendency, councillors and other representatives will say to me ‘yes we know this is a state government responsibility but they are not doing it so the Australian Government must’.

“There is a limit to what we can do. Do not forget the responsibilities the states have to step up to the mark to assist you as well. Please keep the pressure on the states and territories as much as you do the Australian Government."

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at editorial@governmentnews.com.au.  

Sign up to the Government News newsletter