CHAIRMAN of the NSW Country Mayors Association, mayor Rick Firman, has called for the Australian Government and opposition to commit to the restoration of commonwealth funding for local government.

“Federal Governments of all persuasions have slowly but surely eroded the funding that is provided to Local Government,” Cr Firman said.

“It is alarming that the annual Financial Assistance Grants provided to Local Government by the Federal Government have decreased from one per cent of Commonwealth taxation revenue in 1996 to just half-a-per-cent today.”

Mayor Firman raised concerns falling revenue was a major contributing factor to the financial sustainability challenges that many Councils in rural and regional NSW currently face.

“Declining Commonwealth contributions, coupled with rate pegging in New South Wales and increasing operating costs are making it very difficult for councils, and particularly country councils, to continue to deliver services and infrastructure at the levels our communities need,” he said.

Country Mayors’ Association deputy chairman and Bega Valley Shire mayor, Russell Fitzpatrick, with CMA chairman and Temora Shire mayor, Rick Firman.

CMA deputy chairman, mayor Russell Fitzpatrick, said insufficient funding from the Australian Government hits country communities in the hip pocket.

“The inadequate Financial Assistance Grants situation creates large rate rises across rural and regional New South Wales local government areas during a cost-of-living crisis, as councils struggle to remain financially sustainable,” Cr Fitzpatrick said.

“While country councils know their communities are doing it tough, their operating costs have also risen much faster than their revenue over consecutive years. Special rate variations harm the relationship we have with our ratepayers but they have become a necessity in New South Wales,” he said.

“Grants are over 70 per cent of the revenue of some rural councils. Their rate base is stagnant. So, even rate hikes cannot help them much.”

The CMA has written to Prime Minister Anthony Albanese, as well as the leader of the Opposition, Peter Dutton, and leader of the National Party, David Littleproud, requesting one-on-one meetings to discuss the issue.

The Leaders have also been invited to address the Country Mayors’ Association March 28 meeting, which has a theme of financial sustainability.

Country-based councils in New South Wales face unique cost pressures, with many local government areas being the size of small European countries and being responsible for close to 1500kms of roads.

Mayor Firman explained councils are required to deliver public services like administration, recreational facilities, pools, libraries and waste facilities in multiple locations in order to ensure equity of access, which increases the cost of council operations.

“In many of our 87 member council LGAs there is little or no public transport,” Cr Firman said.

“Therefore, it is almost impossible to consolidate service delivery in centralised locations to cut costs. “Our board and our members are committed to ensuring those who choose to live and work in country New South Wales have the services and infrastructure available that validates that choice. It’s all about equity,” Cr Firman said.

“We are asking the Commonwealth and Opposition to please step up to the plate, to support our members in providing the services and infrastructure that our communities need and deserve.

“A commitment to return Financial Assistance Grants funding to 1996 levels would substantially improve financial sustainability not just for New South Wales councils but for local government across Australia,” he said.