The NSW Labor Opposition has branded the Berejiklian Government’s local government stimulus package as being too late for some NSW councils.
Labor has also raised serious concerns that $250 million, the vast majority of funding in the package, is to be allocated as loans to councils, instead of direct funding for shovel ready projects.
“What has been announced by the Berejiklian Government is simply too late for many councils by any measure,” says Labor’s local government spokesman Greg Warren.
“Instead of being proactive when councils were first looking for assistance and leadership, the government has been reactive and in the meantime councils have been forced to stop projects, cut services, lose money and let staff go.
“This could have all been avoided had the government acted sooner.
“These loans are a slap in the face for local governments across NSW, particularly to those councils who can’t even apply for grant funding in normal circumstances due to the co-contribution component.”
The $395 million economic stimulus package was announced on Sunday by NSW treasurer Dominic Perrottet and local government minister Shelley Hancock.
Mr Perrottet said the Covid-19 crisis has hit councils hard financially and the NSW Government was determined to limit the impact to keep more people in jobs and allow councils to deliver for communities across the State.
“Our State’s 128 local councils are a critical part of the NSW economy, especially in many regional and rural towns where they are sometimes the largest employer,” Mr Perrottet said.
“This is about keeping people in jobs which will allow councils to continue to provide essential services in their communities throughout the ongoing Covid-19 crisis and bounce back faster once we come out the other side.”
The NSW Government’s local government economic stimulus package includes a $250 million increase in low-cost loans to eligible councils.
Other measures announced included:
- Up to $112.5 million from the NSW Government’s Jobs for NSW Fund to support a council job retention allowance of $1,500 per fortnight per employee to limit job losses in the NSW local government sector.
- The allowance will be paid for up to three months to qualifying staff working in the NSW local government sector.
- $32.8 million to assist councils meet the cost of the 2020-21 increase in the Emergency Services Levy.
“This funding injection enables councils to redirect funds to critical core services and deliver much-needed financial support for local communities,” says local government minister Shelley Hancock.
“This package builds on the NSW Government’s $82 million to support 260 council-run childcare centres and $25 million for local councils to rebuild and refurbish local showgrounds, bringing our total support for the local government sector to over half a billion dollars.”
