Ms SCRYMGOUR - 2002-08-14
I understand that there have been some concerns raised in relation to the allocation of funding to local government through the Commonwealth Financial Assistance Grants. Can the minister explain the method of allocating this funding, and why it is that some councils in the Northern Territory may be faced with reduced levels of funding?
ANSWER
Madam Speaker, I thank the member for Arafura for her question. I am aware that some councils are facing reduced funding under the Commonwealth Financial Assistance Grants this year and, not surprisingly, they are unhappy with the situation. However, it is important to understand that the framework for the allocation of this funding is essentially determined by the Commonwealth government. It is the Commonwealth government that determines the global funding level to be provided nationally to the local government sector, and it is the Commonwealth government that determines the distribution of that global allocation between the states and territories.
The Northern Territory Grants Commission then has the job of allocating the funding across the local government sector within the Territory in accordance with the national principles developed under that Commonwealth legislation. The methodology used by the Northern Territory Grants Commission, which is driven by those national principles, has been in place for some years and has previously been approved by Commonwealth and Territory ministers.
This year, there have been variations in the size of grants to some councils. This is due primarily to the availability of more up-to-date data and, in particular, more accurate population statistics. The old data for expenditure and population that the Northern Territory Grants Commission had been using meant that, in the past, some councils were receiving more than they should have and, in turn, some were receiving less.
Let me emphasise that the Northern Territory Grants Commission is an independently incorporated body. This ensures that allocations to councils occur in an objective and independent manner. The Northern Territory government has no power to approve or reject the formula used by the Grants Commission. Ultimately, approval for the allocation lies within the Commonwealth government. The assurance I can give, however, is that I will do all I can to win a fairer share of the global funding available to the Territory. I will also be doing my best to ensure that the data and statistics available to the Commission are as accurate and as up-to-date as possible. That way, we can win a better deal for local government in the Territory, as well as reduce the likelihood of dramatic, one-off adjustments to the level of funding to individual councils.
ANSWER
Madam Speaker, I thank the member for Arafura for her question. I am aware that some councils are facing reduced funding under the Commonwealth Financial Assistance Grants this year and, not surprisingly, they are unhappy with the situation. However, it is important to understand that the framework for the allocation of this funding is essentially determined by the Commonwealth government. It is the Commonwealth government that determines the global funding level to be provided nationally to the local government sector, and it is the Commonwealth government that determines the distribution of that global allocation between the states and territories.
The Northern Territory Grants Commission then has the job of allocating the funding across the local government sector within the Territory in accordance with the national principles developed under that Commonwealth legislation. The methodology used by the Northern Territory Grants Commission, which is driven by those national principles, has been in place for some years and has previously been approved by Commonwealth and Territory ministers.
This year, there have been variations in the size of grants to some councils. This is due primarily to the availability of more up-to-date data and, in particular, more accurate population statistics. The old data for expenditure and population that the Northern Territory Grants Commission had been using meant that, in the past, some councils were receiving more than they should have and, in turn, some were receiving less.
Let me emphasise that the Northern Territory Grants Commission is an independently incorporated body. This ensures that allocations to councils occur in an objective and independent manner. The Northern Territory government has no power to approve or reject the formula used by the Grants Commission. Ultimately, approval for the allocation lies within the Commonwealth government. The assurance I can give, however, is that I will do all I can to win a fairer share of the global funding available to the Territory. I will also be doing my best to ensure that the data and statistics available to the Commission are as accurate and as up-to-date as possible. That way, we can win a better deal for local government in the Territory, as well as reduce the likelihood of dramatic, one-off adjustments to the level of funding to individual councils.
Last updated: 09 Aug 2016