Jun 17, 2014

Abbott’s road cuts hurting South Australia

Tony Abbott’s decision to axe crucial supplementary roads funding in South Australia will force councils to increase council rates or cut services, the Local Government Association of South Australia has confirmed.

Today I have given notice of a Private Members Motion condemning the Abbott Government’s decision to axe the Local Roads Supplementary Funding Program in South Australia and calling for the decision to be reversed.

South Australian councils will lose $18 million as a result of the cuts, on top of $104 million already slashed from South Australia council budgets after Mr Abbott froze indexation of Financial Assistance Grants to councils.

The Local Government Association of South Australia has described the severity of cuts to supplementary road funding, which only affect South Australia, as “genuinely shocking”.

The funding addressed the disadvantage of South Australian councils face under the inter-jurisdictional distribution of the local road component of Financial Assistance Grants, with a lower population but more roads to maintain than other states.

The former Labor Government provided $51 million to South Australian Councils between 2011-12 and 2013-14 under the program.

Good roads increase productivity and support jobs. They are an essential element of liveable, productive and sustainable towns and cities. Tony Abbott should stop the cuts and reinstate supplementary roads funding to South Australia.


*** A copy of the motion is attached ***