This week marked the 28^th month since the Local Government and Shires Associations of NSW commissioned a report into the effects of cost shifting onto Councils by the NSW Government called ‘Are Councils Sustainable’ by Percy Allan AM. The report was given to the Minister for Local Government on the 3^rd May 2006 .

“It is now well over two years since the Allan Report was presented to Minister Paul Lynch. Why has he still not given a reply as to how he will support NSW Local Councils and commit the NSW Government to assist Councils against cost shifting,” said Chris Hartcher, Shadow Minister for Local Government.

Next month the NSW Parliament will begin Budget Estimates Hearings for 2008-09. Last year Paul Lynch had this to say about the Government response to the Allan Report:

Friday 19 October 2007 – Budget Estimates GPSC 3 – Local Government:

Mr PAUL LYNCH: The whole-of-government response is being prepared and we would anticipate, I think, but that will be released reasonably soon.

The Hon. MELINDA PAVEY: So after Christmas?

Mr PAUL LYNCH: I did not say that.

The Hon. MELINDA PAVEY: February, March?

Mr PAUL LYNCH: I said what I meant and meant what I said.

The Hon. MELINDA PAVEY: So, soon.

Mr PAUL LYNCH: That is what I said.

“It is now 28 months since the report was presented to the Minister and a year since he Paul Lynch said the Government response would be ‘soon’. Paul Lynch should deliver his response, if he cannot do it (he’s had over two and a half years) he should resign,” said Chris Hartcher.

At the same Estimates Hearings last year Paul Lynch also said, ‘The focus of my portfolio is to provide a framework for a strong and sustainable local government sector that works together to meet community needs’. 

“It is clear that Paul Lynch does not take this framework seriously. Local Councils work hard with their communities, the Minister does not. The time has come for Paul Lynch to start meeting those needs. The Minister cannot continue to sit on his hands and do nothing while NSW Councils continue to struggle financially,” said Mr Hartcher.

“Yet despite, or perhaps because of, this monumental inactivity this Minister is even being considered for the Deputy Premiership,” said Chris Hartcher.

In July this year the latest report into the ‘Financial Sustainability of the Existing Financial and Infrastructure Policies of NSW Councils 2008’ was released.

The Financial Report into NSW Councils concluded that 35 Councils are financially unsustainable and 19 Councils are on the verge of being classed as unsustainable also.

“The report shows that Local Governments are increasingly forced to come up with funds due to the Governments continued cost shifting. The Minister for Local Government has failed to adequately address Councils concerns. Paul Lynch lacks the will to fight to secure funding for essential local services and infrastructure from his own Government and stop the cost shifting,” Chris Hartcher said.

“In 2006/07 this shortfall was as much as $412 million, up $33 million from 2005/06,” he said.

“The cost shifting by the NSW Government has included Private Certification Provisions, Environmental Protection, Public Health, Food, Brothels, Companion Animals, Occupational Health and Safety, Abandoned vehicles, Contaminated Lands, Heritage, Waste, Energy, Water, resources for the NSW and Rural Fire services, pensioner rates rebates, educational services and roads infrastructure.

“The shortfalls vary from Council to Council, with estimates being as high as $3 million for regional councils - up to $11 million for Bankstown City Council and Sydney City Council, and $12 million for Gosford Council.

“It is clear that over the past 13 years, NSW Labor has let infrastructure go by the way side forcing local Governments to pick up the pieces.

“It is the typical attitude of Ministers in the Iemma Labor Government – if they think something is too hard or can’t be bothered with it, they just tiptoe away hoping no one will notice,” Mr Hartcher said.

“If Paul Lynch cannot deliver a report in two and a half years, a year after he said it would be soon, then he should resign.

“When Morris Iemma reshuffles his cabinet, Paul Lynch should be replaced and given nothing,” said Mr Hartcher.