Local government funding
Mr GRIMLEY (Western Victoria) (12:15): My question is for the Minister for Local Government. I have asked in this place before about a stabilisation fund and other ways to provide financial stability to smaller rural councils. The responses I have received talked about the rural councils transformation program, Sustainability Fund partnerships, spending allowances for smaller rural councils—which probably would not even in some cases fund one road project—and the library fund. Whilst these are great initiatives, they do not even touch the sides of the issue of long-term sustainability for councils. The rate caps only make their sustainability more doubtful. Whilst I can see the merits and necessity for rate caps, ratepayers still expect councils to deliver the same amount of services with a reduction in revenue. There remains the problem of the incredible disparity between rich, growing, financially prosperous metropolitan councils and councils in rural areas, which seem to receive the crumbs in terms of spending. I understand there is a rates bill coming to the house in a few months, but unfortunately it will not deal with this issue. My one, singular question is: Minister, can you explain why a stabilisation fund is not actively being explored for rural councils?
Mr LEANE (Eastern Metropolitan—Minister for Local Government, Minister for Suburban Development, Minister for Veterans) (12:16): I thank Mr Grimley for his question. I think as far as consideration about any particular fund goes, it is something that can be considered into the future. But I can say that one initiative that has recently been announced from the Treasurer is the opportunity for councils to access the treasury corporation loans, which has been advocated for by particularly peri-urban and rural councils for a number of years, and their aspiration for that has been fulfilled.
I understand that Mr Grimley is right in that the sustainability of small rural councils is an ongoing issue, and we continue to work with Rural Councils Victoria regarding what may be successful ways for rural councils to become sustainable into the future. I understand there are a number of issues that they have to deal with. And Mr Grimley is right; there are those issues in terms of geographically the size of their councils compared to metropolitan councils, the road networks and all the challenges that they have. I visited a rural council up at the top of the state a few months ago that have a number of renewable energy projects that they have lobbied for and that are being initiated in their particular local government area, which will bring in quite a fair bit of ongoing rate revenue, so there are a number of different initiatives that small rurals are enacting themselves.
I will just say to Mr Grimley, regarding any more suggestions around rural council sustainability, that we are always open to that. I think a couple of years ago we were all on a decentralisation program from the metropolitan areas to go out to rural Victoria, and I think the pandemic sorted that out for us and people are rushing out to those areas. So there will be an increased rate base, but I do respect that is a challenge within itself as well. So we would like to work with those small rural councils on turning that challenge into an opportunity.
Mr GRIMLEY (Western Victoria) (12:19): Thanks, Minister, fantastic answer. Clearly housing is an issue that would uplift the rate base of councils, and despite the future of the rate cap it would help the financial situation of rural and regional councils hugely. There are places in my electorate—as you would be well aware of, I am sure—that have seen an incredible demand for housing, like you mentioned with the displacement of those from metropolitan to regional areas. I have spoken about the low rental vacancies before around Western Victoria in particular. I have suggested a regional housing summit to gather ideas about how we can fix the housing crisis. Whilst housing is not necessarily in your portfolio, it is an issue that will directly go to the financial sustainability of councils. The Minister for Housing we have spoken to; he was receptive to the idea. But my question I suppose is: will you, Minister, speak with the Minister for Housing to progress the idea of a regional housing summit, given the benefits for local councils?
Mr LEANE (Eastern Metropolitan—Minister for Local Government, Minister for Suburban Development, Minister for Veterans) (12:19): I think the short answer is yes, because it is already coming to fruition and, given my regional colleagues here, Mr Grimley—you are hitting the nail on the head—we have spoken about this issue in regional Victoria around housing, the lack of rentals, the cost of housing, Airbnb. There are a number of issues. It is an area that we really want to work with the rural councils on to find ways to support them, and I have actually said to them: any initiatives, any ideas, they want to bring to us will be really appreciated.