Ms WALKER - 2012-12-05
Last week in a ministerial statement you said local governments did not have sufficient funding to remain sustainable. Your mini-budget cut funding for local government from $72m to $59m - a cut of $13m or 18%. How does cutting their funding help them have sufficient funding to remain sustainable?
ANSWER
Madam Speaker, I thank the member for Nhulunbuy for her question. I note she has been busy over there with illiterate mutterings. She has taken on the new role of the former member for Drysdale, Ross Bohlin - seems to be sitting in a very similar place over there rabbling on the whole way. I am very happy to give the minister for ...
Ms LAWRIE: A point of order, Madam Speaker! Offensive to a member.
Madam SPEAKER: Please be seated. Minister, you have the call if you could get to the point.
Mr GILES: Thank you very much, Madam Speaker. I am very happy to give the shadow minister a briefing about how finance works for local government.
I can explain the way it works. There is a federal Grants Commission which identifies how money comes to the Territory. In the Territory we have a Territory Grants Commission which works out how the money goes to local government in the Northern Territory.
There is currently about $15m in FAGS grants, or financial assistance grants, $15m in roads grants, there is operational money of $20m. Sometimes, that money comes in from the federal government at different stages of the year. That is why the money has not been identified in the budget because it has already gone out or we are waiting on the new money to come in.
A total of 93% of the local government budget is grants money - it comes in as grants, it goes out - and 7% is for us to actually do the business.
While I have a bit of time up my sleeve, I point out the operational grants money of which there is $20m. Did you know that over the last six years there has not been an increase in operational grants? Where the Deloittes report talks about the long-term financial sustainability of the shires, that is actually talking about how much money they receive to operate. Aside from the rate increases and other issues about raising revenue, they did not increase any money for six years - six years, bush members!
They brought in the shire councils and did not give them any extra money. Is it any wonder they are in trouble financially? You jump up here leading with the chin asking questions about local government and not even understanding what it is about ...
Ms Lawrie: What are you increasing?
Mr GILES: I am particularly happy to give you a briefing.
What you do not know is, in that budget over the forward estimates, there is $6.2m for local government in regional governance reform for the shires, because we are acting on our election commitments. Plus what else is in there? In addition …
Mr McCARTHY: A point of order, Madam Speaker! I ask the member for Braitling to direct his responses through the Chair.
Madam SPEAKER: Minister.
Mr GILES: Madam Speaker, I remind the member for Barkly he is on a warning. I know it is not my job, but I am happy to help out in this House.
Madam SPEAKER: Member for Braitling!
Mr GILES: It is good to see him back in Darwin. He must have had a good week in Tennant Creek. I know there was a protest there about the weather station and he would have been front and centre on the weather station ...
Mr McCARTHY: A point of order, Madam Speaker! Standing Order 113, relevance.
Madam SPEAKER: Minister.
Mr GILES: You lead with your chin and come up with frivolous points of order. You cannot hack it. You did not go back to Tennant Creek to fight the fight for the weather station. You are the member for Barkly; the Labor member with friends in high places who cannot even stop a weather station being closed down, cannot stop Muckaty, cannot stop the weather station. You are a waste of space …
Mr McCARTHY: A point of order, Madam Speaker! Standing Order 113. The member knows he should direct his responses through the Chair.
Madam SPEAKER: Minister.
Mr GILES: Thank you, Madam Speaker, and I will go on. This was the former ‘yes’ government ...
Ms WALKER: A point of order, Madam Speaker! I asked a very direct question of the minister and he has not answered it. People will not be satisfied with that answer, it is pathetic.
Madam SPEAKER: Minister, your time has expired.
ANSWER
Madam Speaker, I thank the member for Nhulunbuy for her question. I note she has been busy over there with illiterate mutterings. She has taken on the new role of the former member for Drysdale, Ross Bohlin - seems to be sitting in a very similar place over there rabbling on the whole way. I am very happy to give the minister for ...
Ms LAWRIE: A point of order, Madam Speaker! Offensive to a member.
Madam SPEAKER: Please be seated. Minister, you have the call if you could get to the point.
Mr GILES: Thank you very much, Madam Speaker. I am very happy to give the shadow minister a briefing about how finance works for local government.
I can explain the way it works. There is a federal Grants Commission which identifies how money comes to the Territory. In the Territory we have a Territory Grants Commission which works out how the money goes to local government in the Northern Territory.
There is currently about $15m in FAGS grants, or financial assistance grants, $15m in roads grants, there is operational money of $20m. Sometimes, that money comes in from the federal government at different stages of the year. That is why the money has not been identified in the budget because it has already gone out or we are waiting on the new money to come in.
A total of 93% of the local government budget is grants money - it comes in as grants, it goes out - and 7% is for us to actually do the business.
While I have a bit of time up my sleeve, I point out the operational grants money of which there is $20m. Did you know that over the last six years there has not been an increase in operational grants? Where the Deloittes report talks about the long-term financial sustainability of the shires, that is actually talking about how much money they receive to operate. Aside from the rate increases and other issues about raising revenue, they did not increase any money for six years - six years, bush members!
They brought in the shire councils and did not give them any extra money. Is it any wonder they are in trouble financially? You jump up here leading with the chin asking questions about local government and not even understanding what it is about ...
Ms Lawrie: What are you increasing?
Mr GILES: I am particularly happy to give you a briefing.
What you do not know is, in that budget over the forward estimates, there is $6.2m for local government in regional governance reform for the shires, because we are acting on our election commitments. Plus what else is in there? In addition …
Mr McCARTHY: A point of order, Madam Speaker! I ask the member for Braitling to direct his responses through the Chair.
Madam SPEAKER: Minister.
Mr GILES: Madam Speaker, I remind the member for Barkly he is on a warning. I know it is not my job, but I am happy to help out in this House.
Madam SPEAKER: Member for Braitling!
Mr GILES: It is good to see him back in Darwin. He must have had a good week in Tennant Creek. I know there was a protest there about the weather station and he would have been front and centre on the weather station ...
Mr McCARTHY: A point of order, Madam Speaker! Standing Order 113, relevance.
Madam SPEAKER: Minister.
Mr GILES: You lead with your chin and come up with frivolous points of order. You cannot hack it. You did not go back to Tennant Creek to fight the fight for the weather station. You are the member for Barkly; the Labor member with friends in high places who cannot even stop a weather station being closed down, cannot stop Muckaty, cannot stop the weather station. You are a waste of space …
Mr McCARTHY: A point of order, Madam Speaker! Standing Order 113. The member knows he should direct his responses through the Chair.
Madam SPEAKER: Minister.
Mr GILES: Thank you, Madam Speaker, and I will go on. This was the former ‘yes’ government ...
Ms WALKER: A point of order, Madam Speaker! I asked a very direct question of the minister and he has not answered it. People will not be satisfied with that answer, it is pathetic.
Madam SPEAKER: Minister, your time has expired.
Last updated: 09 Aug 2016