LOCAL GOVERNMENT DISASTER FUND

The Hon. CARMEL ZOLLO (14:54): I seek leave to make a brief explanation before asking the Minister for State/Local Government Relations a question about the local government disaster fund.

Leave granted.

The Hon. CARMEL ZOLLO: I understand that several regional councils have made applications for financial assistance under the local government disaster fund guidelines. Can the minister please provide the chamber with further information on this matter?

The Hon. R.P. WORTLEY (Minister for Industrial Relations, Minister for State/Local Government Relations) (14:54): I thank the honourable member for her very important question. I am pleased to advise that as part of the Mid-Year Budget Review the government approved $15.5 million to be drawn down from the Local Government Disaster Fund to help regional councils affected by the natural disasters that have occurred in the past 15 months.

Storms in December 2010 and February 2011 over the northern, mid-north and western regions of South Australia caused extensive wind and flood damage to local government infrastructure in a number of adjoining councils, including Goyder, Flinders Ranges, Clare and Gilbert Valleys, Barossa, Light, Orroroo, Carrieton, Northern Areas and Peterborough. An additional application was received from the Corporation of the City of Whyalla for damages sustained to their foreshore seawall as a result of a king tide surge in May 2011.

I recently visited the Light Regional Council, the Regional Council of Goyder, Mid-Murray Council, the District Council of Peterborough, the Whyalla City Council, and the Clare and Gilbert Valleys Council, and personally informed the representatives of each of these councils of the payments approved by cabinet.

Members may be aware that the fund was established in 1990 to assist local governments when faced with the cost of repairing or replacing uninsurable infrastructure. The fund was originally expected to self-generate top-ups through interest on the capital. They were originally funded by a percentage of the Financial Institution Duty which was abolished when the GST came into operation back in the 1990s.

The government, in partnership with the LGA and the local government sector, will undertake a comprehensive review to ensure the fund's ongoing viability. The terms of reference for the review are currently being drafted and will be announced shortly. The review, with input from the Department of Treasury and Finance and SAFECOM, will look at avenues for restoring the fund's capital base.

I think it is important to realise that when the FID was abolished, through the introduction of the GST, it really was incumbent upon the government of the day (now the opposition) to actually find a way of replenishing that fund. Over the years, as a number of disasters have occurred, it has left the fund vulnerable. It has also left the council—

Members interjecting:

The Hon. R.P. WORTLEY: The best time to actually fix up a problem is when it first arises. The best time to fix this problem when they did away with the FID was to find some other source of income to replenish the fund. I can assure you that I, as minister, and the Treasury and the Local Government Association will certainly be looking at ways of fixing up the problem created by those now on the opposition benches. The substantial financial commitment of $15.5 million is an example of this government's willingness to step up to the plate and assist local governments and our regional communities.