Recognition for the rural

AN announcement from the Federal Government last month committing to increase the level of Financial Assistance Grants to councils across Australia – as detailed in today’s edition of the Pioneer – can potentially be seen as somewhat of a long-term investment into the socioeconomic health of rural areas.

It serves as recognition from those at the top level of the country’s governance that daily circumstances are becoming tougher, and acknowledgement that regional communities still play an invaluable role in keeping the national economy rolling.

For a long time issues surrounding the present contributions through the Financial Assistance Grants had been highlighted by our local mayors.

The levels of funding being provided – which are understood to have now dropped to 0.49 per cent of Commonwealth taxation revenue – were clearly inadequate to help meet the modern tests all communities are now coming up against, and these only seem to be heightened for rural councils.

Councils rely on such support to maintain local roads, community facilities, waste services, outdoor parks, and other essential infrastructure. This is made particularly tougher where a small ratepayer base limits revenue.

Little reasoning also seemed to be devoted into how Financial Assistance Grant funding was distributed between regional and metropolitan councils.

When examining the financial struggles in front of our Riverland councils, one can see these include rising construction costs, ageing infrastructure, workforce shortages, recovery from natural disasters, and the increasing cost of maintaining extensive road networks, all with relatively fewer residents contributing rates.

However, after recent policy development has arguably focused on securing the votes of first homebuyer families in metropolitan capitals, is the commitment an early indicator that the Labor Federal Government might be waking up to the importance of ensuring regional communities are sustainable?

The food grown in areas like the Riverland feeds the whole country, and having the regions handicapped through a disparity in funding coming from above just seems like a recipe for long-term disaster.

Ideally though, the real winners of the Federal Government’s new commitment should be local ratepayers.

As has been stated by a local mayor, council receiving extra funding should ease the pressure on rate increases in future years to be above CPI. The money could be used to deliver needed infrastructure repairs and upgrade, and expand community services for those in need.

As long as the increased Financial Assistance Grants funding is used on such positive outlets, it should result in a winning outcome for both Riverland councils and their communities.