FINANCIAL ASSISTANCE GRANTS

The Hon. J.M. GAZZOLA (14:40): I seek leave to make a brief explanation before asking the Minister for State/Local Government Relations a question about Financial Assistance Grants.

Leave granted.

The Hon. J.M. GAZZOLA: I understand that every year the South Australian Local Government Grants Commission makes a series of recommendations to the commonwealth government for the distribution of the Financial Assistance Grants to local government bodies. Minister, will you update the council on the Local Government Grants Commission 2011-12 recommendations to the commonwealth government and subsequent outcomes?

The Hon. R.P. WORTLEY (Minister for Industrial Relations, Minister for State/Local Government Relations) (14:41): I thank the honourable member for his important question. Last month I was pleased to be able to advise the Hon. Simon Crean MP (federal Minister for Regional Australia, Regional Development and Local Government), details of the commonwealth Financial Assistance Grants and supplementary local road funding to be provided to local government authorities in South Australia for 2011-12. I was also pleased to advise the Hon. Anthony Albanese MP (federal Minister for Infrastructure and Transport) of the recommended distribution of the special projects component of the commonwealth Roads to Recovery grants to local governments in South Australia, also for the year 2011-12.

The Local Government Grants Commission's recommendations for the distribution of commonwealth Financial Assistance Grants to councils for 2011-12 were last month endorsed and approved by Simon Crean MP. Grant allocations for South Australia for 2011-12 are made up of $145.8 million in Financial Assistance Grants; $16.2 million in supplementary local road grants; and $4.3 million for the special projects component of the Roads to Recovery grants. A further $24.1 million will be allocated by the commonwealth directly to councils under the Roads to Recovery grants. A total of $190.4 million will be allocated to local governing authorities in South Australia during the year 2011-12.

As members would be aware, the commission is responsible for making recommendations to the minister on the distribution of untied commonwealth Financial Assistance Grants to local governing authorities in South Australia in accordance with state and federal legislative requirements. By way of background, the Financial Assistance Grants are divided into two components: general purpose and identified local roads grants. To calculate the general purpose grants, both the capacity of councils to raise revenue and their expenditure needs relative to the average or standard council are assessed. Greater funding is directed to councils with less capacity to raise revenue from rates or where services cost more to provide for reasons outside the council's control.

In 2011-12 general purpose grants to South Australia are estimated at $109.5 million, an increase of 3.83 per cent from 2010-11. The local roads grants are estimated at $36.4 million, an increase of 4.28 per cent over 2010-11. Furthermore, the Local Government Grants Commission recommendations for the distribution of the special projects component of the Roads to Recovery grants were last month approved and endorsed by the Hon. Anthony Albanese MP. These recommendations were made to the commission on the advice of the Local Government Transport Advisory Panel. Unlike the Financial Assistance Grants, these grants are tied and are made available under the terms and conditions set out in the Roads to Recovery Act 2000.

I am pleased to advise the chamber that the District Council of Kimba, the Rural City of Murray Bridge, the City of Onkaparinga, the City of Holdfast Bay, the City of Playford, the District Council of Mount Remarkable and the District Council of Orroroo Carrieton all received grant allocations for specific projects under the special projects component of the Roads to Recovery grants. The Roads to Recovery program is of enormous assistance to local governing bodies, and I commend the commonwealth government for continuing this important initiative.

Additionally, the state and local government sectors were very pleased to be advised by the federal government's announcement to extend the supplementary road funding grants program from 2011-12 to 2013-14. Once again, the South Australian Local Government Grants Commission supplied a recommended distribution to be considered by the commonwealth government. These recommendations were accompanied by a summary of project details for the special local roads component.

The supplementary local road funding program has been an enormous assistance to all local governing bodies in South Australia and has also gone some way to securing a more equitable share of local road funding for South Australia. I commend the chair of the Local Government Grants Commission, Ms Mary Patetsos, along with commission members Mr John Ross and Ms Jane Gascoigne. Their ongoing commitment and hard work are very much appreciated.