Local government inquiry: Road funding fix needed for rural councils

RURAL residents are crying out for reliable roads, the state’s peak farming body has told an inquiry into local government funding and fiscal sustainability.

Last week, the House of Representatives Standing Committee on Regional Development, Infrastructure and Transport held hearings with more than 20 councils in Wodonga, Wagga Wagga and Taree.

Also present were representatives from organisations such as Regional Capitals Australia, NSW Country Mayors and NSW Farmers.

NSW Farmers Business, Economics and Trade Committee chair John Lowe appeared during the hearings, urging urgent reform to secure reliable funding for rural councils and critical local infrastructure.

“Councils in rural, regional and remote areas have an enormous network of roads and they need greater certainty to maintain them, which supports farm businesses and community safety,” Mr Lowe said.

“Roads are the sole connection for many rural communities and farms, but too many councils are being forced to ‘patch and pray’ with unreliable, project-based funding.”

NSW Farmers called on the Australian Government to restore Financial Assistance Grants to a minimum of 1 percent of total Commonwealth tax revenue, providing a stable funding base for local government and a stronger foundation for local road maintenance.

At the same time, Mr Lowe said, there needed to be a pause on special variation rates (SVR) and greater scrutiny on these applications.

“Farm businesses cannot keep absorbing sudden, steep and cumulative rate rises as councils scramble to fill funding gaps due to cost shifting from state and federal governments,” Mr Lowe said.

“They need a fairer, more sustainable model that enables councils to have funding sustainability and effectively deliver for communities in the regions, especially roads.

“It’s also critical that all landholders contribute equitably and fairly – increasing property acquisitions and land use changes from National Parks, state forestry, biodiversity offsets by mining companies and electricity generation companies are reducing rateable land which can leave the burden to fall on others, including farmers.”

Last week’s hearings featured a broad cross-section of regional stakeholders, including MidCoast, Port Macquarie-Hastings, Dungog Shire and Maitland Shire councils.

Federal Member for Lyne Alison Penfold welcomed the inquiry’s visit to Taree.

“This is an important federal inquiry and comes at a time when our local councils are weighed down by the replacement costs of flood ravaged infrastructure and community infrastructure such as roads and sporting fields that are coming to the end of life without the necessary fiscal autonomy to deliver,” she said.

“The problem with centralised decision-making in Canberra is that too often there is a disconnect between policy and the real outcomes that our regions actually need – it is critical that our voice is heard to help shape the Committee’s recommendations.”