LOCAL Government NSW warns the Fair Work Commission’s Road Transport Contractual Chain Order will impose significant new costs on councils, with flow-on impacts for communities across New South Wales.

LGNSW vice-president Khal Asfour said the order would add further strain to councils already under intense financial pressure.

“Councils are working hard to protect essential services amid rising fuel costs and supply uncertainty,” Cr Asfour said.

“This decision risks adding yet another cost burden at the worst possible time and we call on the Federal Government to assist councils and their communities to make sure services can continue to be provided.

“We acknowledge the vital work the transport sector performs. This is an issue where we both need more support from the government.

“This order will mean the cost burdens of rising fuel prices will be substantially borne by councils – and our communities – at the end of the contractual supply chain,” he said.

“We support the Australian Local Government Association’s calls for greater engagement and consideration of the impact of these types of decisions on councils and urge the State Government to respond to our call for financial support for councils.

“We also need the NSW Government to guarantee fuel supplies for council waste and recycling services, and to ensure councils are supported to meet rising fuel costs. One practical solution is to reinvest waste levy funds to offset these increases.

“Councils and landfill operators will pay almost $900 million in waste levies this year, yet these funds currently go into consolidated revenue.

“Reinvesting this money back into the system would help ease the impact of escalating fuel costs on councils and their communities,” Cr Asfour said.

Australian Local Government Association president Matt Burnett said Councils are going to face increased costs from a number of directions after the announcement.

“Not only are we looking at the increased cost and administrative burden on councils, but it also shifts costs from businesses onto councils that can’t afford more financial pressures,” Cr Burnett said.

“The entire point of these changes is to ensure that small businesses aren’t heavily impacted by the current fuel supply crisis. And we support that. But not at the expense of council services. This order puts increased pressure on communities and ratepayers, who are already feeling the strain.

Cr Burnett said the lack of consideration for councils reinforces the need for ALGA to have a seat at the national table when decisions are made that affect councils’ bottom lines.

“Local government can’t afford decisions to be made without us,” he said.