Councils applaud NSW Government stimulus package

Councils today applauded the NSW Government for listening and responding to Local Government NSW’s calls for economic stimulus to councils to save local jobs and support communities to recover from the economic impacts of COVID-19.

Local Government NSW (LGNSW) President Linda Scott said the $395 million economic stimulus package announced by NSW Treasurer Dominic Perrottet would drive economic recovery in every corner of NSW, and save essential services.

“Mayors, councillors and tens of thousands of council staff welcome that the Premier and her government have listened and responded to Local Government NSW’s calls to drive locally led economic recovery and save local essential services by funding NSW local governments,” Cr Scott said.

“As the only state government to have provided councils with economic support of this magnitude, the NSW Government has ensured our state will lead the economic recovery from COVID-19.”

Cr Scott said LGNSW had been in steady and constant liaison with the Federal and NSW governments on the need for financial stimulus and assistance to local government in the wake of COVID-19.

The resulting package includes:

  • A three-month Council Job Retention Allowance of $1500 per fortnight per qualifying staff, to limit job losses. The total allowance is capped at $112.5 million and will be drawn from the NSW Government’s Jobs for NSW fund;
  • $32.8 million to help councils meet increases in the 2020/21 Emergency Services Levy. This provision is over and above the $13.6 million provided to councils last year, to help them manage overnight levy increases of up to $220,000;
  • A $250 million increase in low-cost loans to eligible councils through the State’s TCorp borrowing facility, to kick-start community infrastructure projects. TCorp will also be offering principal and interest payments deferrals on existing council loans upon request for the next six months.

“The Council Job Retention Allowance is critical to locally-led economic recovery, particularly after Prime Minister Scott Morrison denied councils access to the $1500 JobKeeper support package available to the private sector,” Cr Scott said.

“Local government funding assistance is key to managing the economic impacts of COVID-19 and protecting essential services. Councils are eager to play their part in a locally led recovery.

“Councils are such important local employers across NSW. In regional and rural NSW councils are often the largest employer in town. This funding will ensure tens of thousands of people who make up our invaluable local government workforce will continue to be employed, delivering essential services such as street cleansing, providing support to communities and small businesses, especially those most vulnerable during this pandemic.”

Cr Scott said LGNSW would continue to work with the Government to achieve the best outcomes for communities, including assessing the need for a possible extension of the Council Job Retention Allowance to ensure it is in line with the six-month JobKeeper program. The current package only provides funding for three months.

As a number of the State’s most at-risk councils are currently ineligible for the TCorp loans, the peak body will also be seeking an extension of TCorp loan eligibility criteria to ensure no community is left behind.

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