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Ingram calls on Federal Minister to address road funding issuesIndependent Member for Gippsland East, Craig Ingram, has called on Federal Transport Minister, John Anderson, to address the need for an increased share of resources to be spent on rural roads. By Craig Ingram - 12th December 2003 - Back to News "It has become apparent in recent years that the amount of funding available to Local Government has clearly not kept pace with the cost of maintaining local roads to an acceptable standard," Mr Ingram said.
"East Gippsland Shire Council covers some 21,000 square kilometres and includes 2800 kilometres of roads and 220 bridges, and the timely replacement of these assets is beyond its capacity.
"Recent figures I have obtained demonstrate the massive shortfall in funding this local shire is facing, and this appalling situating is being repeated by rural shires throughout Australia.
"Also contributing to this is the inequitable "as-of-right entitlement" which ensures that 30% of funds distributed from the Grants Commission (state and commonwealth) to councils on the basis of their population and not based on the council’s needs.
"Currently, seven Victorian councils receive minimum grants totalling $10.6 million dollars and six of these councils did not qualify on the basis of need as assessed by the Grants Commission.
"It is a demonstrable fact that it costs more to provide all services to scattered, isolated ratepayers than to high density populations.
"The objective of the Grants Commission is to ensure that the allocation of funds for local government purposes is made, as far as practicable, on a full horizontal equalization basis,
"The objectives of the Grants Commission are in direct conflict with the as-of-right entitlement that guarantees 30% of all general purpose grants are distributed on the basis of population.
"This issue was raised as a recommendation by the Standing Committee on Economics, Finance and Public Administration in the inquiry into Local Government and Cost Shifting where it was recommended that a new methodology for the distribution of Federal Grants to Local Government should be based on the basis of need.
"I have urged John Anderson to address this issue to ensure that rural and regional councils and ratepayers do not continue to face this inequitable situation.
"The Federal Government needs to change this requirement in the Commonwealth Act and work with the states and territory governments to make similar changes.
"In addition, the Federal Government must ensure the continuation of the Roads to Recovery Program and increase funding in order that the rapid deterioration of the nation’s local road network can be addressed," Mr Ingram concluded.
Source: http://gippsland.com/ Published by: news@gippsland.com
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