/( tL
PRIME MINISTER
FOR MEDIA AUGUST 17 1980
ELECTORATE TALK
Local governments and local authorities throughout Australia
know now that they will benefit this year from a substantial
increase in Commonwealth funds. The Commonwealth's
undertaking to raise the proportion of personal income tax
collected going to local government to 2% has now
been fully implemented. As a result, the current allocation
for 1980/ 81 has gone up by more than 35% to more than
$ 300 million.
At least 30% of these funds are to be distributed to all
councils on a per capita basis with the balance being allocated
by individual State grants commissions on a needs basis.
As well as this flow of income tax funds to local government
in untied grants, there has been a significant shift in the
Commonwealth's arrangements for funding roads. over the
past five years, the proportion of funds allocated for local
road funding has risen from 18% to 24% this year.
Income tax sharing with local government was introduced by the
Federal Government five years ago when the level of assistance
under the Labor government was about $ 80 million. Under the
Commonwealth's revenue sharing arrangements this jumped to
$ 140 million in 1976/ 77, and it has been moving up consistently
ever since. With the current $ 300 million, local government
will have received more than $ 1,000 million in untied grants
in the five years of tax sharing.
The Commonwealth Government has thus given local government
a substantial and rapidly growing source of funds. It has
done this because in such a vast country as Australia, local
government is essential for the development of community
identity. Local governments are often the driving force
behind community spirit, enabling aresponse to be made to
the community's needs which would not be possible from a
remote bureaucracy in a capital city or in Canberra.
The Commonwealth Government does not have a constitutional
responsibility for local government, but it does have a
strong philosophical commitment to giving Australians the
maximum possible control over their own affairs. Decisions
about water, sewerage, local roads and bridges are properly
made by local government. The smaller the local government is, ./ 2
4W, JQU
2
the more say the people in that community have over these
decisions, the results of which affect them on a day to day
basis. The best solution to local problems is local action,
based on local understanding.
While the Commonwealth is moving ahead to take the decision
making process as close as possible to the community, in
New South Wales the Labor government is pursuing a policy
which is exactly the opposite. In the past week, visiting
several shires in New South Wales, I found increasing
resentment of the programme of amalgamrations which is being
forced on local and shire councils in that State.
The arguments for merging local government into regional
governments can be beguiling large authorities would be
financially stronger and more efficient, according to
these arguments. However, the arguments are false. The
financial strength of local government is now assured
because of the Commonwealth's personal income tax revenue
sharing.
The question of efficiency is one for the communities themselves
to resolve. If councils want to combine in the interests of
efficiency, then that is fine. But if the people of a community
wish to retain their own shire, even if it is small and
somewhat less efficient, then that also is their own right,
and that is how it should remain.
Forcing amalgamations on local councils against the wishes
of the people of a community is a bad principle which
defeats the purpose of local government. A previous
Labor government in Canberra proposed a similar scheme
for amalgamating local councils into a series of regions.
The purpose was to undermine the State governments and
reduce their authority.
Both then and now these amalgamations, when they are not
voluntary, are at the expense of the rights of citizens
to make the decisions affecting their lives to the maximum
extent possible. If a community wants its local government
to remain small, then that is the community's right.