MidCoast Council has welcomed the decision by the NSW Local Government Grants Commission not to proceed with proposed changes to the way Financial Assistance Grants are distributed among Councils.
Following clear feedback from councils and peak bodies, the Commission has decided the draft revised methodology will not be implemented. The existing methodology will continue to apply.
MidCoast Council strongly opposed the proposed changes, which would have resulted in an estimated annual reduction of $5 million in funding for the region.
General Manager, Adrian Panuccio, said the Commission’s decision was a positive result for MidCoast Council and other regional communities.
“The decision not to implement the draft methodology is a welcome outcome for our community,” Mr Panuccio said.
“Financial Assistance Grants help fund the roads, buildings, drainage, parks and services our community relies on every day.”
“Had the proposed changes been introduced, Council would have faced a significant reduction in funding at a time when councils are already managing rising costs, ageing infrastructure and increasing demand for services.”
Of the 102 councils that made submissions on the proposed methodology, 54 councils raised significant concerns or proposed modifications, while 38 councils opposed the changes.
Mr Panuccio thanked councils that joined MidCoast Council in calling for the proposed changes to be paused and highlighting the potential impacts on regional communities.
“These councils recognised that the proposed model did not adequately account for the unique challenges and circumstances facing regional communities.”
MidCoast Council covers more than 10,000 square kilometres and is responsible for a large and diverse network of roads, bridges and community facilities. The region’s geographic size, dispersed population and infrastructure responsibilities create significant costs in delivering services across the local government area.
Mr Panuccio said Council remained open to improvements to the grants system, provided any future methodology was fair and evidence-based.
“MidCoast Council would welcome a methodology that is simple, transparent, reliable and genuinely directed to councils with the greatest relative need,” he said.
“The proposal did not achieve that outcome. Instead, it would have shifted financial pressure from one community to another, without addressing the broader funding challenges facing local government.”
Council will continue to work with other councils and local government representatives to advocate for a fairer and more sustainable funding model that recognises the needs of regional communities.
