LOCAL GOVERNMENT COMMISSION

The Hon. CARMEL ZOLLO (14:47): My question is to the Minister for State/Local Government Relations. Can the minister please provide an update to the chamber on the financial assistance grants allocation for—

Members interjecting:

The PRESIDENT: Order! The Hon. Mrs Zollo, can you go again? I am having difficulty hearing. Try it again.

The Hon. CARMEL ZOLLO: Can the minister please provide an update to the chamber on the financial assistance grants allocation for the 2012-13 period?

The Hon. R.P. WORTLEY (Minister for Industrial Relations, Minister for State/Local Government Relations) (14:48): I thank the honourable member for her very important question and acknowledge her concern for small rural councils that require and look forward to these grants. As part of the 2012-13 budget, the Hon. Wayne Swan MP, Deputy Prime Minister and Treasurer, outlined that $2.2 billion in commonwealth financial assistance grants would be provided to local government across Australia in 2012-13 to assist councils with the provision of services to their communities.

I am pleased to advise that last month the Hon. Simon Crean MP, Minister for Regional Development and Local Government, approved the South Australian Local Government Grants Commission's recommended distribution of financial grants for 2012-13. For the 2012-13 period, local government in South Australia will receive $148 million in total, which represents an increase of 3.6 per cent over 2011-12. Approximately 60 per cent of these grants are going to regional, rural and remote communities.

The financial assistance grants are divided into two components: general purpose and identified local roads grants. Members may be interested to know that South Australia's estimated funding from the federal government comprises $109.5 million for general purpose grants (an increase of 3.8 per cent) and $36.4 million for identified local road grants (an increase of 4.3 per cent).

In South Australia the Local Government Grants Commission is responsible for making recommendations to the commonwealth government on the allocation of untied commonwealth financial assistance grants to local governing authorities in South Australia. 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 out of the council's control.

I can further advise that the supplementary local road funding program (only available in South Australia) was extended for a further three years from 2011-12 to 2013-14 and will provide $16.9 million in 2012-13, which reflects the increase in the financial assistance grants pools. Additionally, South Australia will receive $28.4 million in Roads to Recovery funding for 2012-13. The Roads to Recovery program is of enormous assistance to local councils and I commend the commonwealth government for continuing this important initiative.

I also commend the Chair of the Local Government Grants Commission, Ms Mary Patetsos, along with commission members for their continuing commitment and hard work. You cannot underestimate the importance of these grants to regional Australia. I go out as much as possible with the Grants Commission and on my own talking to councils and looking at their issues. I know firsthand, from when these grants are given, that there are some councils for which these grants account for half of their budget and without them they would find themselves not being able to operate. What that would do is disconnect a lot of rural people from anywhere and deprive them of services that we take for granted in the city.