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EMBARGO: 11.30 a. m.
S 1* 4 ' A PRESS STATEMENT NO. 307
23 August 1974
GRANTS TO LOCAL GOVERNMENT
The Australian Government has approved the first grants
ever to be made toleduce inequalities between local government
areas throughout Australia. For the first time since its
creation in 1933, the Grants Commission has reconmended grants
for local government areas.
The Government, which last year empowered the Commission
to recommend aid for local government areas in addition to
claimant States, has a} proved the body's proposals.
It will grant a total of $ 56,345,000 to local government
organisations throughout Australia in 1974/ 75.
The allocations for Councils in each State are:
New South Wales:
Victoria: Queensland: South Australia:
Western Australia:
Tasmania: $ 21,359,000
$ 14,630,000
$ 8,954,000
$ 4,774,000
$ 4,959,000
$ 1,669,000
The grants will be paid to Councils through State Governments.
The Australian Government has accepted the Commission's
reconendation that no conditions be attached to the way in
which local government bodies spend their allocations in 1974/ 75.
The acceptance of the proposals of the Commission, an independent
and non-political body, reprzecnts one of the most important
advances in the history of Australian local government. This
major breakthrough results fromi legislation introduced by the
Government last year to expand the Commission's functions.
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The Commission w; c. st,.! bishe-, d in 17133 to 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 Auctralia and
Tasmania. The basis of making such grants has been the recognition
that at various times some State! 7 have been le-ss advantaged
than others, both in terms of finance and services.
The Commission has served the purpose of helping to
reduce such inequalities between States.
The Grants Commission Act 1973 empowered the Commission
to examine not just inequalities betwc~ en States but also the
inequalities that exist between rcgi ons in the one State.
This recognises that while a single State may be in a
strong financial position overall, some areas within it may lack
adequate services and facilities.
Local Councils in such areas may not have the financial
resources to overcome those deficiencies and even the relevant
State Government may not be able to provide adequate assistance.
It has become quite obvious that if the disabilities
of some areas of Australia are to be overcome the national
Government must provide special grants.
That is the principle whi hh has guided the Grants
Commission and the Government in their deliberations.
National Government assistance for Councils is long
overdue in Australia. Neither the Australiannor State Governments
in the past have been prepared to provide adequate assistance
to enable local government to provide the many essential services
which the community now demands of it.
Local Government has indeed been neglected and downgraded
since the very beginnings of our federation.
The extension of the Grants Commission's powers and
the Government's acceptance of its recommendations will mean
that local government, for the first time, will be given the
kind of assistance that it so desperately needs.
CANBERRA, A. C. T.