The Country Mayors Association of NSW (CMA) has added its voice to a growing alliance pushing back against a Federal Government plan to cut its contribution to disaster recovery funding, warning the change would leave local ratepayers footing more of the bill after floods, fires and storms.
The CMA has slammed proposed changes to the Disaster Recovery Funding Arrangements that would substantially reduce the Commonwealth’s financial contribution to disasters in New South Wales.
The Federal Government is considering moving to a 50/50 funding split with the states for natural disasters. The Commonwealth currently contributes 65 per cent of disaster recovery costs in NSW, and the change would leave the state millions of dollars short.
The proposal follows the Colvin Review of Commonwealth Disaster Funding. The review did not recommend the funding change, but the Federal Government has used it to help justify the cut.
CMA chairman Mayor Rick Firman said it was unacceptable for Canberra to shift more of the burden onto the states and councils.
“It is totally unacceptable that the Federal Government is going to shift more of the burden for disaster recovery onto the NSW State Government and Local Government,” he said.
“So many of the natural disasters that occur in NSW happen in the communities that our Member Councils represent.”
“I can say without reservation they are in no position to pick up more of the financial responsibility just because the Federal Government thinks it is okay to walk away from its responsibilities.”
Mayor Firman said the proposal was made worse by the fact NSW does not receive its fair share of GST revenue.
“The proposal is all the more galling because the NSW State Government does not receive its fair share of the GST,” he said.
“Expecting that NSW State and Local Government have the financial capacity to pick up more of the tab for disaster recovery, is just not on, especially given that the financial sustainability of Local Government is the CMA’s number one issue.”
The CMA said it would join the Australian Local Government Association (ALGA) and Local Government NSW (LGNSW), alongside the NSW State Government, to oppose the change.
“The CMA will be joining with ALGA, LGNSW and the NSW State Government to vehemently oppose the proposed change,” Mayor Firman said.
“Disaster recovery is expensive, councils receive just three cents out of every dollar of national taxation, while the Federal government collects 80 cents of every dollar, it is fitting therefore that the Federal Government carries the majority of the funding burden.”
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