BUDGET CUTS TO IMPACT ON LOCAL COUNCILS

27 May 2014

Moonee Valley, Brimbank and Maribyrnong Councils will be left worse off with the Abbott Government slashing funding, Opposition Leader and Member for Maribyrnong Bill Shorten said today.

Mr Shorten said the Abbott Government had cut over $900 million in funding by freezing the Financial Assistance Grants indexation arrangements, leaving local councils with less money to maintain roads and deliver essential community services.

“It was confirmed by the Government last week that grants to local councils would be frozen,” Mr Shorten said.

“This decision will mean that assistance for councils will no longer be indexed in line with CPI or population increases.

“Many people will suffer as a result of the Abbott Government’s Budget – pensioners, families, students and parents with sick children. Now even local councils are being slugged.”

Mr Shorten said that local councils relied on funding provided under the Financial Assistance Grants program.

“But under the Abbott Government, our local councils will have less money for local roads and infrastructure and less money for community services,” he said.

“Local councils will be forced to look at other ways of making ends meet – including increasing council rates, considering staffing cuts, reducing services for local residents and increasing charges.

“On top of cuts to health, education and family assistance, this will be yet another financial burden for local residents imposed by the Abbott Government.”

ENDS