Rural people face loss of services

THE peak body representing rural councils has urged the federal government to provide further support, as the dire financial situation of the municipalities is laid bare.

In a submission to the federal inquiry into local government sustainability, Rural Councils Victoria, which represents 34 councils across country Victoria, warned that many rural communities are on the brink of losing essential services.

“We are at a point where we have to make some hard decisions,” RCV chair Mary-Ann Brown said.

“Councils only have two reliable sources of income: rates – which are capped – and grants, which have been declining in real terms for years.

“Small rural communities are resilient and self-reliant but rural councils are being hit from many directions all at once.

“In recent years there have been successive natural disasters, a cost-of-living crisis, community expectations have changed and the system for financing councils and council services has not kept up.

“Put simply, councils need more resources, and we need federal and state governments to help us keep up with inflation.”

One step that the federal government could take is to increase the amount of Financial Assistance Grants available for local governments, Ms Brown said.

“With communities and families across the country facing their own cost-of-living pressures, the option to raise revenue directly from communities is not a feasible one. Many in rural communities do not have the capacity to pay more,” Ms Brown said.

“Governments have all been guilty of cost shifting, forcing local government to take extra responsibilities without providing adequate funding, as well as cutting support for local government in real terms.”

Moorabool Shire Council chief executive, Derek Madden, said this area was also feeling the pressure.

“It’s always a balance to keep rates in line with the state government cap and provide the infrastructure and services our growing community needs,” he said.

“We will continue to advocate strongly to other levels of government for funds for projects such as the indoor pool in Bacchus Marsh, and look at ways we can deliver services in all areas through partnerships with government and non-government entities.”

The RCV survey of member councils found that about one-third of councils have outsourced services in a bid to save money, with about a quarter saying they have also looked at raising fees and charges.

The survey showed that many councils have already cut jobs and extended plant replacement schedules.