LARGER Hunter councils could voluntarily transfer some federal roads funds to smaller councils like Dungog after a report suggesting current NSW-administered arrangements are shifting money away from rural and regional councils towards metropolitan councils over time.
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The Hunter Joint Organisation of Councils has engaged accounting firm Price Waterhouse Coopers to investigate how grants for rural road works have not kept pace with the cost of providing the service, while assessment guidelines for metropolitan roadworks have kept pace with costs.
The decision follows a report by Muswellbrook Shire Council showing the NSW Grants Commission’s method of distributing federal financial assistance grants based on how much councils previously spent on roads disadvantaged rural councils like Dungog with huge road commitments and a limited rate base. The disadvantage compounded as smaller councils received less grants money and spent less over time.
Metropolitan councils have seen the cost base used to determine how much they receive increase by 57 per cent since 2011, while rural roads have only seen a 30 per cent rise.
“It is for this reason that discussions have been taking place for a considerable period of time in regard to the financial assistance grants funding methodology as interpreted by the NSW Grants Commission, and the degree to which smaller rural and regional councils are disadvantaged by the approach that Grants Commission employs,” Cessnock mayor and Hunter Joint Organisation of Councils chair Bob Pynsent said.
Hunter councils could not change how financial assistance grants are applied but “we can certainly show leadership in analysing the impact of the program and identify how refinements and local initiatives might lead to better outcomes for all our communities”, Mr Pynsent said.
The initiatives could include a voluntary redistribution of grants within the 10 councils in the region.
In 2016/17 Dungog Council received $850,000 for roads funding under the financial assistance grants scheme and Muswellbrook received $868,000. This compared with Lake Macquarie ($2.6 million), Newcastle ($1.74 million), Cessnock ($1.57 million), Maitland ($1.25 million), Upper Hunter ($1.8 million), Port Stephens ($1.15 million) and Singleton ($1.18 million).
The Hunter Councils decision was taken as four Dungog councillors, mayor Harold Johnston and general manager Craig Deasey resigned following a tumultuous period including the negative impact of the NSW Government’s amalgamation process.