Mayors and Councillors from across regional NSW have been accused of being incompetent and not worthy of the money they are paid to serve their communities in a recent speech delivered by new Local Government Minister Ron Hoenig during Question Time in State Parliament last week.

Mayors argue that there are many factors that have contributed to the current financial stress in Local Government, not the least of them is incompetence by those who serve. Some of the most significant factors are cost shifting from the State to Local Government by successive governments over many years, including, country mayors say:

• an out-of-touch annual rate review system that does not keep pace with inflation and cost of living increases
• a need for many regional councils to provide for services that would normally be provided by State or Federal governments, like child care, aged care, accommodation for police, nurses, ambulance, emergency services
• out-of-control cost increases in annual audit costs for many
• end-of-term election costs are becoming out of reach for many rural councils
• all funding programs are on hold by the new State Government.

This iron-fisted approach has some councillors wondering: Is there a future for local government in NSW? Councils have been told their contribution to the budgets of fire and emergency services would rise 19.5 per cent next year in relation to the 2022 floods, Black Summer bushfires and removal of a state government subsidy.

But Local Government Minister Ron Hoenig had a clear message for the mayors and councillors flooding his office for help to cover the rise: get your own house in order first.

During Question Time last week to highlight “egregious expenses” in recent years including Kiama Council’s $105 million for an aged care facility, Liverpool City Council’s $350,000 renaming to the City of Liverpool and Ryde City Council’s $110 million civic centre Mr Hoenig said:

“Local government needs to face their own expenditure issues before they come bleating to the state government asking for an allocation of funds when it is facing a $180 billion deficit,” he said, referencing the state debt projected for 2025/26.

He also revealed the auditor-general had identified material misstatements or omissions in one-third of councils’ annual reports in the past year.

“The 2021/22 audit report discovered errors worth $1.3 billion,” he told parliament.

“Ninety-four out of 128 councils reported high-risk audit findings indicating his weaknesses in their processes.”

Mayor of Narromine Shire Council, Cr Craig Davies said to hear the rant of Minister Hoenig was to listen to the voice of arrogance.

“My annual stipend for working an average of 50-60 hours per week is $37,000. Minister Hoenig is paid $315,000 per annum and he has the hide to deny Mayors a fair and reasonable stipend when our Queensland counterparts are paid $108,000. He’s unworthy of his very privileged position and will damage this government and relations between Local Government and the Ministers. What a shame.”

The 2021 NSW Local Government elections resulted in a high number of Councils that did not receive adequate nominations to hold an election. Councillors aged between 60 and 69 make up the largest number serving in NSW, closely followed by 50 to 59 years of age.

“This cannot change without respect, recognition and collaboration by the State Government,” CMA Chairman Jamie Chaffey said.

“And on behalf of the CMA executive, I have a simple message for our members – you are appreciated, and you do deserve respect for serving your community, despite the recent attack to your credibility from the new Local Government Minister. Keep standing up for your community and use your voice with pride.” 

This article appeared in the  Narrandera Argus, 8 June 2023.