Media Release: Lift regional productivity? Invest in the councils that deliver in regional Australia
The Australian Local Government Association says a new report on regional productivity reinforces the case for greater direct and untied funding for councils, which are best placed to identify and deliver the infrastructure their communities need.
The Regional Australia Institute’s Regional Productivity Solutions report highlights the importance of infrastructure, housing, workforce capacity, connectivity and resilience to stronger regional economies.
ALGA President Mayor Matt Burnett said councils were already delivering across all of these areas, but were being held back by inadequate and fragmented funding.
“Regional councils know their communities, understand their local economies and know where investment will make the biggest difference,” Mayor Burnett said.
“What they need is the financial capacity to get on with the job.
“Too much Commonwealth funding is tied up in competitive programs that require councils to spend significant time and resources applying for grants, often for priorities determined in Canberra rather than locally.
“Providing councils with more direct, untied and predictable funding would allow them to invest where it is needed most, whether that is roads, water and wastewater infrastructure, housing-enabling works, community facilities, digital connectivity or disaster resilience.”
Mayor Burnett said restoring Financial Assistance Grants to at least one per cent of Commonwealth taxation revenue would provide councils with the flexible funding needed to support productivity and growth across regional Australia.
“The report makes a strong case for a more place-based approach to regional productivity, recognising that the barriers to growth are different from one community to the next,” Mayor Burnett said.
“We strongly support its focus on housing-enabling infrastructure, transport, water security, climate resilience, digital connectivity, skills and essential services.
“These are all areas where councils have a critical delivery role, and where additional investment can unlock economic activity and improve the liveability of regional communities.”
Mayor Burnett said the report also highlighted the challenges created by fragmented grant programs, limited revenue bases and workforce shortages, particularly for smaller rural and remote councils.
“It is important that future regional policy recognises these constraints and gives councils the capacity to plan and invest for the long term,” he said.
“ALGA also supports the report’s emphasis on better regional economic data and stronger place-based decision-making.
“Regional productivity is shaped by industry mix, private investment, commodity prices, workforce availability and local infrastructure, so policy responses need to reflect the very different circumstances of individual regions.
“The central message is one we strongly support: lifting Australia’s productivity means investing in regional communities and giving local institutions, including councils, the capacity to deliver.”