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Bass Coast’s Financial Challenges Shared By Councils Across Australia

Councils across Australia are entering a period of financial crisis unless some dramatic reforms are introduced by state and federal governments.

By Bass Coast Shire Council - 27th April 2007 - Back to News

The findings come as part of a PricewaterhouseCoopers report commissioned by the Australian Local Government Association on the financial sustainability of local government.

"Councils across Australia are facing the same challenges and pressures that we are experiencing here at Bass Coast," said Bass Coast Shire Council’s Corporate Services Director, Danny Luna.

"Revenue available to councils is simply not keeping pace with the cost of providing services that are expected by the Australian community today.

"There are many councils that continue to post operating deficits because they can not fund the expectations of today’s community."

Compounding this financial dilemma for councils is the ever-widening infrastructure renewal gap.

"Councils are responsible for vast majority of public roads, drains, footpaths, toilets, buildings and facilities," Mr Luna said.

"A lot of this infrastructure was constructed more than 50 years ago and needs to be replaced.

"Councils, including Bass Coast, can only afford to replace a fraction of this infrastructure each year and unfortunately this not enough to cover the replacements needs," Mr Luna said.

The report estimates that $14.5 billion is needed to adequately renew existing infrastructure across Australia.

Government cost shifting is identified as the third major cause to the looming financial crisis for local councils.

"Cost shifting occurs in two forms," Mr Luna said.

"The first is when local government agrees to provide a service on behalf of the State or Federal Government. At the outset this is fine because the other level of government is also funding the service.

"However, experience has shown that the amount of funding has not kept pace with the cost of service delivery and in some cases funding has ceased all together. Local councils are left to not only provide the service but also pay for it.

"The second form of cost shifting is when the State or Federal Government ceases to provide a service and local government, being at the heart of the community and seeing that there is a genuine need for the service, steps in for the sake of their local community."

The report makes recommendations for reform in a ‘twin track’ approach. The first approach is for local government to continue its pursuit for internal efficiencies. The second approach is to seek changes to government funding arrangements.

Mr Luna says the proposed reforms are well supported by Bass Coast Shire Council.

"At Bass Coast, we are very committed to the model of Business Excellence which is driving our continuous improvement program," Mr Luna said.

"This program is producing internal efficiencies that help to reduce the cost of services.

"Bass Coast is also committed to strengthening the accountability of the State and Federal governments for services to our community.

"Councillors and senior staff will aim to drive this message home to members of our Parliaments," Mr Luna finished.

Source: www.gippsland.com

Published by: news@gippsland.com

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  Wellington libraries are upgrading with RFID technology, introducing self-loan stations, automated return chutes, and smart bins, improving borrowing efficiency, reducing manual handling, and allowing staff to focus on programs and services.
• David Littleproud criticises Labor’s COP Summit bid as costly, self-serving, and out of touch amid Australia’s cost-of-living crisis
  Nationals leader David Littleproud slammed Labor’s $2 billion COP Summit bid as a self-serving, costly vanity project, prioritising global attention over Australians struggling with cost-of-living pressures and rising energy bills.
• Skeene Creek Farm launches, driving sustainable agriculture, innovation, and resilience across East Gippsland region
  Skeene Creek Farm launches near Bairnsdale, transforming underutilised land into a sustainable agriculture hub, promoting circular economy, innovation, environmental resilience, and practical research for East Gippsland farmers.
• Wellington Shire Council awards $130,997 to 27 community groups supporting events and volunteer initiatives across the Middle of Everywhere
  Wellington Shire Council has awarded $130,997 to 27 community groups supporting arts, events, sports, infrastructure, inclusion, and volunteer initiatives, strengthening participation and connection across the Middle of Everywhere region.
• Forge Theatre hosts IMMERSIVE program celebrating creativity, collaboration and artistic experimentation across East Gippsland this March
  This March, Forge Theatre hosts IMMERSIVE, a month-long program encouraging creativity, collaboration, experimentation, workshops, performances, and community participation, celebrating East Gippsland’s vibrant, inclusive, and artistic spirit.
• Allan Labor government invests $860,000 to support and strengthen Men's Sheds across Victoria
  The Allan Labor government is investing $860,000 to support 31 men's sheds across Victoria, funding upgrades, expansions, and new equipment to strengthen communities and foster connection through shared skills.
• Spring flows planned to support native fish migration and river health across West Gippsland
  West Gippsland CMA's Environmental Water team is planning Spring river flows to support native fish migration, enhance river health, and balance environmental care with community enjoyment of waterways.
• Farm fencing grants protect 300 hectares of biodiversity and boost waterway health across West Gippsland
  Over 300 hectares of farmland will be fenced through West Gippsland CMA's farm fencing grants, protecting waterways, biodiversity, and livestock while supporting sustainable farming and revegetation across the catchment.
• David Littleproud warns vegetable growers of crisis as compliance costs soar, confidence collapses and exits loom
  Nationals leader David Littleproud warns Australia's food security is at risk, with two in five growers considering leaving amid rising compliance costs, financial strain, and Labor policies undermining farming viability.
• Stewart Road Bridge reconstruction in Kernot approved, $1.768M federal funding restores vital community infrastructure
  Bass Coast Council’s Stewart Road Bridge reconstruction in Kernot approved, receiving $1.768 million federal funding, restoring safe access, supporting local residents, industry, emergency services, with tendering expected early 2026.
• East Gippsland Council accepts $4.255M Commonwealth funding to progress Gippsland Lakes Shared Community Hub
  East Gippsland Council has accepted $4.255 million Commonwealth funding to progress the Gippsland Lakes Shared Community Hub, finalising designs and preparing to tender construction for Paynesville lakeside community facility.
• West Gippsland CMA champions healthy waterways, culture, community, and sustainability across the catchment
  West Gippsland CMA celebrates World Rivers Day by highlighting river health, cultural significance, and restoration efforts. Caring for 40,000km of waterways, they partner with communities to ensure resilient, thriving rivers.