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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2012-11-13 Daily Xml
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LOCAL GOVERNMENT ROAD FUNDING

The Hon. J.S. LEE (14:57): I seek leave to make a brief explanation before asking the Minister for State/Local Government Relations a question about funding for local government roads.

Leave granted.

The Hon. J.S. LEE: The National President of the Local Government Association and Mayor of Marion, Ms Felicity-ann Lewis, mentioned on ABC Radio on 4 October that councils are about $1.2 billion short for current spending on Australian roads. Money has to come on a federal level as they are the only ones that have money. She said that the states do not have money, which is why giving them the responsibility for roads is problematic.

During the ABC radio interview the Mayor of Port Adelaide Enfield Council, Gary Johanson, revealed that there were at least 10 motions concerning the lack of funding to councils to pay for their roads at the Australian Local Government Conference in Canberra this year. On radio a caller by the name of David said:

I am old enough to remember that our registration fees on our cars and trucks and trailers have gone up umpteen times to pay for the roads. I'd like to know from the minister where is all this money gone that we were paying for the roads and why isn't it actually being spent on the roads?

My questions to the minister are:

1. What consultations have taken place between the minister and the Minister for Transport and Infrastructure to ensure that South Australia is not missing out on road funding?

2. What efforts have been made to improve the efficiencies between state and local government to address a lack of funding for local government roads?

3. When will the state government consult with the community and stakeholders about a better funding model for South Australian roads?

The Hon. R.P. WORTLEY (Minister for Industrial Relations, Minister for State/Local Government Relations) (14:59): I thank the honourable member for her important question. There are three main funding programs for local roads in South Australia: identified local road grants, supplementary local road funding and the Roads to Recovery Program. Identified local roads grants for South Australia for 2012-13 amount to $37 million, an increase of 4.4 per cent from 2011-12, reflecting an increase in the total national pool. This supplementary local road funding—and this was a fund only for 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 pool. South Australia will receive $28.4 million in Roads to Recovery funding for 2012-13.

For all these three road funding programs, 85 per cent of the funds provided to South Australia is allocated by formula funding and 15 per cent is distributed to councils by the South Australian Local Government Grants Commission under the Special Local Roads Program for roads of regional significance.

The Roads to Recovery component is paid directly to local government. Funding for the Special Local Roads Program for 2012-13 is $12.34 million which is made up of $5.55 million from identified local roads grants, $2.53 million from the Supplementary Local Road Funding and $4.26 million from the Roads to Recovery funding.

Distribution of the Identified Local Road Grants between states is based on principles existing prior to 1991-92. The South Australian share of our Identified Local Road Grants is fixed at 5.5 per cent of the national pool. Although South Australia maintains 11.5 per cent of the nation's local roads, it receives only 5.5 per cent of the available funding. This inequity has been addressed in part by the Supplementary Local Road Funding which runs from 2011-12 to 2013-14. This program is unique to South Australia.

This program was extended in the 2011-12 budget for a further three years, providing an expected $50.9 million to South Australian councils during this time. The Roads to Recovery program, provided initially for four years from 2001-02 to 2004-05 and extended from 2005-06 to 2008-09, has been further extended from 2009-10 to 2013-14. This program has addressed the funding inequity for South Australia as this state now receives 8.33 per cent of the available pool funding.

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