EMBARGO: 3,00 P. M.
SATURDAY 3,8,74
SPEECH BY THE PRIME MINISTER,
THE HON. EG. WHITLAM, M. P,,
AT THE OPENING OF THE NEW LITHGOW CITY COUNCIL ADMINISTRATION BLOCK,
LITHGOW,
SATURDAY 3 AUGUST 1974
AUGUST 1974 WILL PROVE AN IMPORTANT
MONTH FOR LOCAL GOVERNMENT IN LITHGOW AND
THROUGHOUT THE NATION, FOR LITHGOW, IT WILL
MEAN THE ACQUISITION OF MODERN OFFICES FROM
WHICH THE COUNCIL CAN ADMINISTER THE AFFAIRS OF
THE CITY. THIS HAS RESULTED ENTIRELY FROM
THE EFFORTS OF THE COUNCIL WHICH RAISED THE
$ 440,000 NECESSARY FOR THE COMPLETION OF WHAT
IT ENVISAGES AS THE FIRST OF THREE PARTS OF
A CIVIC CENTRE FOR LITHGOW,
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THE IMPORTANCE OF THIS MONTH FOR MUNICIPAL
AND SHIRE COUNCILS THROUGHOUT THE COUNTRY IS THAT IT
WILL SEE BROUGHT TO FRUITION ONE OF THE MOST IMPORTANT
ADVANCES IN THE HISTORY OF AUSTRALIAN LOCAL GOVERNMENTS
IN THE NEXT WEEK OR SO THE AUSTRALIAN GOVERNMENT WILL
RECEIVE THE FIRST REPORT OF THE GRANTS COMMISSION ON
APPLICATIONS BY LOCAL GOVERNMENT AUTHORITIES FOR
FINANCIAL ASSISTANCE FROM THE AUSTRALIAN GOVERNMENT.
LATER IN THE MONTH THE CABINET WILL HAVE THIS REPORT
BY AN INDEPENDENT AND NON-POLITICAL BODY TO GUIDE IT
AS IT DRAFTS THE BUDGET, WHEN THE BUDGET ITSELF IS
BROUGHT DOWN NEXT MONTH IT WILL CONTAIN FOR THE FIRST
TIME GRANTS TO LOCAL GOVERNMENT DESIGNED TO OVERCOME
INEQUALITIES BETWEEN DIFFERENT REGIONS IN AUSTRALIA.
THIS PROCESS REPRESENTS A MAJOR BREAKTHROUGH
FOR LOCAL GOVERNMENT. IT RESULTS FROM LEGISLATION
INTRODUCED BY THE GOVERNMENT LAST YEAR TO EXPAND THE
FUNCTIONS OF THE GRANTS COMMISSION. THE COMMISSION
WAS ESTABLISHED IN 1933 TO PROVIDE RECOMMENDATIONS FOR
SPECIAL GRANTS TO BE PAID TO CLAIMANT STATES UNDER
SECTION 96 OF THE CONSTITUTION, AT VARIOUS TIMES IN
THE PAST 41 YEARS THESE STATES HAVE INCLUDED QUEENSLAND,
SOUTH AUSTRALIA, WESTERN AUSTRALIA AND TASMANIA.
THE BASIS OF MAKING SUCH GRANTS HAS BEEN THE RECOGNITION
THAT AT VARIOUS TIMES SOME STATES HAVE BEEN LESS ADVANTAGED
THAN OTHERS, BOTH IN TERMS OF FINANCE AND SERVICES,
THE COMMISSION HAS SERVED THE PURPOSE OF HELPING TO
REDUCE SUCH INEQUALITIES BETWEEN STATES, / 3
3
WITH THE PASSAGE OF THE NEW GRANTS COMMISSION
ACT LAST YEAR, THE GOVERNMENT HAS NOW EMPOWERED THE
COMMISSION TO EXAMINE NOT JUST THE INEQUALITIES BETWEEN
THE STATES BUT ALSO THE INEQUALITIES THAT EXIST BETWEEN
REGIONS IN THE ONE STATE, THIS RECOGNISES THAT, WHILE
A PARTICULAR STATE OVERALL MAY BE IN A HEALTHY FINANCIAL
POSITION, THERE MAY BE AREAS WITHIN IT THAT LACK ADEQUATE
SERVICES AND FACILITIES, THE LOCAL COUNCILS IN SUCH
A REGION MAY LACK THE FINANCIAL RESOURCES TO OVERCOME
THOSE DEFICIENCIES AND EVEN THE STATE GOVERNMENT MAY
NOT BE ABLE TO PROVIDE ADEQUATE HELP, IN FACT IT IS
QUITE OBVIOUS THAT IF THE DISABILITIES OF SOME AREAS
OF AUSTRALIA ARE TO BE OVERCOME THE NATIONAL GOVERNMENT
MUST PROVIDE SPECIAL GRANTS, THAT WAS THE PRINCIPLE
GUIDING THE GRANTS COMMISSION WHEN. IT BEGAN HEARING
APPLICATIONS FOR SUPPORT FROM REGIONAL GROUPINGS OF
COUNCILS THROUGHOUT AUSTRALIA EARLY THIS YEAR,
SUCH ASSISTANCE IS LONG OVERDUE IN AUSTRALIA,
Too MUCH OF TIHE PROVISION OF ESSENTIAL SERVICES IN
THIS COUNTRY HAS BEEN LEFT TO LOCAL GOVERNMENT,
NEITHER THE AUSTRALIAN NOR STATE GOVERNMENTS IN THE
PAST HAVE BEEN PREPARED TO HELP LOCAL GOVERNMENT TO
PROVIDE THOSE SERVICES, I. OCA I_ GOVIRNMENT HAS INDEED
BEEN NEGLECTED AND DOWNGRADED SINCE THE VERY BEGINNINGS
OF OUR FEDERATION, s, ,/ 4
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THE FRAMERS OF OUR CONSTITUTION DID NOT EVEN
BOTHER TO MENTION LOCAL GOVERNMENT AT ALLI As LATE
AS 1927, WHEN THE FINANCIAL AGREEMENT BETWEEN THE
COMMONWEALTH AND THE STATES WAS DRAWN UP, LOCAL
GOVERNMENT WAS STILL IGNORED, IT WAS NOT UNTIL
1936 THAT THE LOAN COUNCIL BEGAN DEALING WITH THE
BORROWINGS OF LOCAL GOVERNMENT AUTHORITIES. YET
IN ALL THAT TIME THE SCALE OF OPERATIONS OF LOCAL
AND SEMI-GOVERNMENT AUTHORITIES HAS GROWN MARKEDLY,
THE GROWTH HAS BEEN PARTICULARLY GREAT SINCE THE
WAR, THIS IS IMMEDIATELY OBVIOUS IF WE LOOK AT
THE FIGURES OF COMPARATIVE DEBTS, THE INDEBTEDNESS
OF THE COMMONWEALTH HAS NOT GROWN SINCE THE WAR,
BUT THE DEBTS OF LOCAL GOVERNMENT AND SEMI-GOVERNMENT
AUTHORITIES HAVE MULTIPLIED MORE THAN 12 TIMES.
LOCAL GOVERNMENT AUTHORITIES ARE NOW BORROWING
MORE EACH YEAR THAN THE TOTAL AMOUNT OF THEIR
OUTSTANDING DEBT ONLY 20 YEARS OR SO AGO,
THE COSTS OF SERVICING THEIR BORROWINGS
BEAR HEAVILY ON THE BUDGETS OF LOCAL GOVERNMENT
AUTHORITIES, OVERALL INTEREST PAYMENTS BY THE
AUTHORITIES WOULD NOW BE EQUIVALENT TO ABOUT 12%
OF THEIR REVENUES, INTEREST PAYMENTS PLUS CAPITAL
REPAYMENTS AMOUNTED TO $ 177,5 MILLION IN 1970/ 71,
EQUIVALENT TO ABOUT 25% OF THEIR REVENUES,
IF WE NEED FURTHER EVIDENCE OF THE FINANCIAL PLIGHT
OF LOCAL GOVERNMENT WE NEED ONLY LOOK AT THE RECENT
REPORT OF THE COMMITTEE OF INQUIRY INTO LOCAL
GOVERNMENT AREAS AND ADMINISTRATION IN NEW SOUTH
WALES, KNOWN AS THE BARNETT REPORT. THE COMMITTEE
POINTED OUT THAT LOCAL GOVERNMENT'IS SHARE OF TOTAL
GOVERNMENT EXPENDITURES HAS BEEN SHRINKING STEADILY
IN AUSTRALIA, IN 1969/ 70 IT REPRESENTED 7.14% OF
TOTAL GOVERNMENT EXPENDITURE IN AUSTRALIA, COMPARED
WITH 21.6% IN CANADA, 25.4% IN THE UNITED STATES
AND 34.6% IN GREAT BRITAIN ( WHERE, IT MUST BE
ADMITTED, THERE ARE NO STATE GOVERNMENTS).
YET, WHILE THE FINANCIAL PLIGHT OF LOCAL
GOVERNMENT HAS WORSENED, WE LOOK TO IT INCREASINGLY
TO MEET SO MANY OF OUR COMMUNITY NEEDS. INDEED THERE
HAS BEEN A QUITE NATURAL AND PREDICTABLE ACCELERATION
IN THE DEMANDS MADE BY THE COMMUNITY' ON LOCAL
GOVERNMENT, WE LOOK TO LOCAL GOVERNMENT TO PROVIDE
ROADS, SEWERAGE, RECREATION FACILITIES), HEAL. TH SERVICES
AND PLANNING. IN MOR'E RECENT YEARS WE HAVE EXPECTED
IT TO EXPAND INTO SUCH AREAS) AS HEALTH SERVICES AND
CHILD CARE CENTRES, THE BARNETT REPORT POINTED OUT
THAT, IN THE VIEW OF MOST SHIRE COUNCILS IN NEW SOUTH
WALES, " THEIR AREAS COULD NOT SURVIVE WITHOUT A
CONTINUANCE OF LARGE CENTRAL GOVERNMENT GRANTS AND,
WITHOUT EXCEPTION, COUNCILS B3ELIEVED THE AUSTRAL-IAN
GOVERNMENT'S INVOLVEMENT IN FINANCING LOCAL GOVERNMENT
WAS ESSENTIAL, I is 96
THE PRESENT AUSTRALIAN GOVERNMENI SHARES lHAF BELIEF
ANrD HAS TRIED TO PUT IT INTO PRACTICE IN IHE LAST
MONTHS. OUR EXPANSION OF THE FUNCTIONS OF 1HL
GRANTS COMMISSION IS A MAJOR EXAMPLE OF THIS. WE
HAVE ALSO UPCRADED THE LEVEL. OF AUSTrRALIAN ( GOVLRNMENT
ASSISTANCE TO LOCAL GOVERNMENT IN SUCH AREAS AS
ABORIGINAL ADVANCEMENT, AGED PERSONS HOUSING,
SOCIAL. SERVICES, SEWERAGE AND RECREATION,
UNFORTUNATELY WE HAVE NOT BEEN ABLE TO ACHIEVE
ALL THAT WE WANTED, LAST YEAR I TWICE ASKED THE
STAT(" PREMIERS TO GIVE LOCAL GOVERNMENT A VOICE AND
A VOTE ON THE LOAN COUNCIL. I FIRST MADE THE REQUEST
AT THE CONSTITUTIONAL CONVENTION IN SYDNEY IN SEPTEMBER.
I TOLD THE CONVENTION:
" I HAVE NO DOUBT THAT THE OVEtRRIDING
CONSIDERATION IN MANY MINDS HERE RELATES TO THE
FINANCIAL. RELATIONS BETWEEN TirE AUSTRALIAN GOVERNMENT
AND THE STATES. SOME OF YOU MAY PREFER TO BELILVE THAT
THE OVERRIDING CONSIDERATION IN MY MIND IS TO CONTINUE
AND EVEN COMPOUND THE PRESENT SITUATION BY WHICH THE
NATIONAL GOVERNMENT DOMINATES THE FINANCIAL RELATIONS
BETWEEN IT AND THE STATES. THAT'S NOT TRUE. MY
OVERRIDING CONSIDERATION AND CONCERN IN THIS CONTEXT IS
TO BALANCE THE FUNCTIONS AND FINANCES OF THE AUSTRALIAN
GOVERNMENT, STATE AND LOCAL GOVERNMENTS TO ENSURE
ADEQUATE SERVICES AND DEVELOPMENTS OF RESOURCES. / 7
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I WISH EACH LEVEL OF GOVERNMENT TO BE IN A POSITION TO
PERFORM BETTER ITS ASSIGNED FUNCTIONS, FOR THE BETTER WELFARE
OF ALL OUR CITIZENS, WHEREVER THEY LIVE,"
THE PREMIERS REJECTED MY PROPOSAL. IT WAS FOR THIS REASON
THAT THE GOVERNMENT TOOK THE QUESTION TO REFERENDUM IN MAY THIS
YEAR. WE SOUGHT THE APPROVAL OF THE AUSTRALIAN PEOPLE FOR AN
AMENDMENT TO THE CONSTITUTION TO ALLOW THE AUSTRALIAN GOVERNMENT
TO MAKE GRANTS DIRECT TO LOCAL COUNCILS AND TO BORROW MONEY ON
THEIR BEHALF. NO GOVERNMENT HAS EVER FOUND IT EASY TO WIN A
REFERENDUM; NEVERTHELESS THIS REFERENDUM WAS CARRIED IN NEW
SOUTH WALES AND ALMOST CARRIED IN VICTORIA AND WAS SUPPORTED
BY 46,8 PER CENT OF THE ELECTORS IN ALL STATES.
THIS DEFEAT WILL MAKE IT HARDER FOR US TO PURSUE OUR
OBJECTIVES OF UPGRADING LOCAL GOVERNMENT AND IMPROVING ITS
FINANCIAL POSITION. WE WILL HAVE TO CONTINUE TO LIVE WITH
THE CUMBERSOME MACHINERY OF OLD. NEVERTHELESS OUR COMMITMENT
TO LOCAL GOVERNMENT REMAINS. WE WANT TO SEE IT TAKE ITS
PROPER PLACE IN OUR THREE-TIERED SYSTEM OF GOVERNMENT,
WE WANT TO SEE THAT IT HAS THE FINANCIAL ABILITY TO MEET AS
MANY OF THE DEMANDS THAT ARE MADE UPON IT AS POSSIBLE.