Wednesday, 13 August 2025

Economy and Infrastructure Committee

Inquiry into Local Government Funding and Services

Bev McARTHUR (Western Victoria) (18:03): I rise to speak on the government response to the Economy and Infrastructure Committee’s inquiry into local government funding and services, tabled on 19 June this year. After considering 114 written submissions, evidence from eight days of public hearings conducted across Victoria and months of additional research and analysis, 48 recommendations were made by the committee through this inquiry. Key areas of suggested reform include addressing the deteriorating financial sustainability of local government, improving access to grant programs and reducing the burden on councils established through crafty cost shifting. Yet only 10 recommendations have been supported in full by the Allan Labor government, in many cases only because they tenuously attest that the issues raised are addressed by their existing policies. Victorians know better than to accept this government’s claim at face value, especially when it is so easy to read between the lines of the pithy comments provided. They see that even if some recommendations have been flagged as supported in full or in principle, this government has no intention of taking meaningful action to improve conditions for councils or ratepayers. The dismissal of the findings of this report is consistent with the government’s lacklustre attitude towards the rigorous work produced by our parliamentary committees, an attitude which is not only denying Victorians well-researched policy but hurting them at the hip pocket too.

With parliamentary investigatory committees costing the taxpayer $5.7 million for 2023–24, one would hope that the government might take on board the advice which they spend so much to obtain. This is not to mention the time, effort and expertise voluntarily provided by stakeholders during the submissions and hearings process, which has also been ungraciously disregarded. This clear rejection of the legitimacy of the needs and claims of local governments and the many Victorians who rely on the services they provide has taken place despite the committee explicitly stating that ‘there is significant scope for the Victorian government to improve its consultation and engagement’, particularly to better manage egregious cost shifts.

It seems obvious to me that implementing the recommendations established via an inquiry which considered contributions from well over half of Victoria’s rural and metropolitan councils and a range of relevant advocacy and support bodies would mark the first step toward improving such engagement and ultimately the operation of local government in this state. However, this government’s inadequate response clearly demonstrates that it would rather turn a blind eye to the mounting problems plaguing this vital sector than face up to the issues it has created and accomplish positive change. So I urge the government to reconsider their position of not supporting the recommendations of the local government inquiry, which I was pleased to be a member of, and all the time that was given by fabulous stakeholders and volunteers across this state, let alone the superb professional advice that was given by others in the sector. Please review your objection to the recommendations and get on board to support local government.