Sunday, December 3, 2006

Government structural reform can help fund $14.5 billion infrastructure back-log

A study undertaken for the Australian Local Government Association by PricewaterhouseCoopers was released today,4 December 2006. The report confirmed 10-30% of Australian councils have significant sustainability issues together with a backlog of $14.5 billion in infrastructure renewal work.

A similar independent inquiry in NSW headed by Professor Percy Allan reported last May that NSW had a $6.3 billion infrastructure backlog, growing at the rate of more than $500 million annually.

The President of the NSW Local Government Association, Cr Genia McCaffery, said councils Australia-wide were in need of an injection of more capital funds by both Federal and State governments. "The reality is that our aging infrastructure is collapsing, and with static or falling populations, at least a quarter of councils cannot expect to find their own funding solutions from rate revenue alone.”

Where can the billions of dollars be found to renew? At the 2002 National General Assembly of Local Government, the following resolution was carried unanimously:

‘The General Assembly calls upon the federal government to review the effectiveness, efficiency, responsiveness or the adequacy of the current three-tier system of government, with a view to structural reform, by calling for a national convention of mayors and elected members of the state territory and federal parliaments to review the structure of the 1901 constitution.’

Isn't it time that the federal government, opposition, minor parties and independants responded with an achievable, long-term strategy to resolve this crisis, before it gets any worse?

No comments: