A recent analysis conducted by federal Labor has found the Hunter region lost almost $12 million in funding during the Governments freeze on Financial Assistance Grants.
According to the Government's own estimates, its 2014 budget move to freeze indexation to FAGs cost local communities more than $600 million worth of services and infrastructure over the three years, with the biggest impact felt by councils in regional and remote Australia.
Financial assistance grants are provided by the federal government under the Local Government (Financial Assistance) Act 1995 which are distributed among the States on an equal per capita basis. These funds are then dispersed among local governing bodies.
In what was described as a budget repair measure in 2013, the Coalition government froze the grants, which put a strain on spending, forcing councils to tighten their purse strings.
In 2017 the freeze was lifted by Treasurer Scott Morrison but Paterson MP Meryl Swanson says the damage has already been done.
"$12 million for an area like Paterson, means better roads, it means things that we all consider very important in our community, things like recycling and rubbish disposal. All the things that local councils provide for us in our everyday life.
"This is why we need to support local government. We need to ensure that it is properly funded. Local government really is the coal face of government in Australia," Ms Swanson says.
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| Pictured: Paterson MP Meryl Swanson. |
