Anthony Albanese (Grayndler, Australian Labor Party, Leader of the House) Share this | Hansard source

in reply—The Financial Assistance Legislation Amendment Bill 2009 makes amendments to two acts. It amends the Local Government (Financial Assistance) Act 1995 by providing a mechanism for the Commonwealth to make payments to states and territories to assist local government as soon as possible. The amendments provide a flexibility that is lacking in the current act.

That flexibility is important. Local government faces its own challenges meeting the demands of the global economic recession. Our capacity to bring forward one quarter of the 2009-10 payments immediately, when the funding is most needed, is an important part of the government strategy to provide a targeted and timely economic response. Next year’s payment will then be reduced by the same amount, with the grants paid over four quarters. This will ensure that local government will have a steady and predictable income stream from the financial assistance grants over the course of 2009-10.

The second act amended by this bill is the Federal Financial Relations Act 2009. The amendments will increase the general drawing rights from the COAG Reform Fund for the purposes of making grants of general revenue assistance to the states. The government looks forward to the passage of this bill within the current sittings of parliament to enable the Commonwealth to meet its budget commitments to provide general purpose financial assistance to the states and to help local government meet the economic challenges before us.

I thank the members for their participation in the debate. The member for Ballarat has played a critical role as the chair of the House of Representatives committee which has considered funding for regional Australia through community infrastructure. That has been an important process in reforming the way that we deliver community infrastructure support in local communities. In the past we have not gone directly to local government; it has been bureaucrats and politicians in Canberra who have determined the outcome of programs such as the former government’s discredited Regional Partnerships program.

We on this side of the House have reformed this process so that local communities have their priorities heard by the federal government through their elected local representatives in local government. That has been an extremely important reform which has been welcomed by local governments right across the nation.

The shadow minister made some comments, once again being critical of the regional and local community infrastructure program. I remind the House that every single local government area in Australia has benefited from that program, with $800 million record funding. There was $250 million allocated under the first round to all councils and shires across the country. Applications from all 565 councils and the ACT have been approved, and 3,220 community infrastructure projects were approved to the value of $250 million, with contributions from local government achieving a much greater economic stimulus than just that figure, but as part of the strategic component of that program we have also allocated $550 million for 137 projects around the nation.

Those 137 projects have produced an economic stimulus of over $1½ billion. Each council was asked to submit their one priority to a value greater than $2 million, and projects right around the nation benefited: in cities, in regional communities, in every state of the Commonwealth and across all political affiliations—unlike the way the former government’s projects were instituted through the Regional Partnerships program.

The shadow minister was not there when I announced the project in Cook, in the Sutherland Shire, but in coming months when he walks outside his electorate office in Caringbah, he will see work taking place to upgrade the very suburban centre in which he has his electorate office. That is a part of the Sutherland Shire Council’s project under this fund. That will stimulate jobs in the Sutherland Shire, stimulate the Sutherland Shire economy and make the communities of Southerland, Caringbah and that area, a much better place for the community, and particularly for the small businesses in that area.

But of course projects have been approved right across the board. Those opposite voted against this program. It was part of the Nation Building and Jobs Plan, the economic stimulus we put forward. They voted against it, but right around the country they have been turning up at launches. When they turn up at launches—whether it be the Leader of the Opposition with the Waverley pavilion refurbishment or whether it be the member for Gilmore, the member for Mallee or the member for Mayo—they are acknowledging that these local projects are a good thing for their local communities, which they are, but they voted against them. And still the shadow minister has come in here and been critical of this program. Their opportunism is there for all to see.

The shadow minister also made a comment that this legislation which we have put forward was not asked for by local government, which of course would imply that somehow local government was not supportive of this reform. The ALGA press release of 12 May 2009 states the following:

Local government funding weathers tough Budget

Councils will also welcome early payment of the first installment of $479.7 million of $1.9 billion in Financial Assistance Grants to local government. As Local Government Minister Anthony Albanese said tonight: ‘No community in Australia is immune from the impacts of the global recession.’

They then went on to say:

In relation to community infrastructure, Australian communities are already beginning to reap the benefits of the $800 million Community Infrastructure Program, providing better facilities while stimulating local economies and creating jobs.

That is what the peak organisation of local government has had to say about this legislation and about our financial support for local government at this difficult economic time. It contrasts markedly with the performance of the former government, which chose to fund private enterprises such as, infamously, the Indigo Cheese factory, which had shut down. It chose to fund that rather than fund community infrastructure through local government. I commend the bill to the House.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

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