ruralcouncilsvictoria VICTORIAN BUDGET SUBMISSION

Transcription

1 ruralcouncilsvictoria VICTORIAN BUDGET SUBMISSION

2 Let s give Rural Victorians a budget to be excited about!

3 Victoria s skyrocketing economic growth is masking a serious issue while Melbourne and regional cities grow, rural Victorians are falling behind. Rural Councils Victoria PO Box 102 Tallangatta VIC 3700 (02) secretariat@ruralcouncilsvictoria.org.au Jobs growth is stagnant, health and education outcomes are below average, and many towns are struggling to retain young families. As Melbourne surges ahead, rural Victorians are watching their roads, businesses and livelihoods stagnate. This widening inequality issue isn t going away. Urgent investment is required to give rural Victorians a fair go and give all communities the same opportunities and living standards as Melbourne s residents. Working together on existing projects, like the Local Roads to Market program, rural councils have demonstrated significant value as investment partners for the Victorian Government. In cooperation with community groups, local businesses and our 38 member councils, Rural Councils Victoria has produced four key priorities for the 2018/19 Budget that get to the heart of what rural Victorians need liveability, sustainability, economic growth and effective service delivery. We re committed to delivering better outcomes for rural Victorians. Let s give them a Victorian Budget to be excited about. 3

4 Contents and key asks Fixing up ageing roads Page 6 KEY MEASURES: Creation of a Rural Roads Support Fund $200 million over four years VicRoads funding to key rural roads $100 million over four years Implement a Liveable Rural Communities Fund $100 million over four years Our roads are the links that keep rural Victoria s economy alive, but they re falling apart. State government support will mean the difference between a dangerous and poorly maintained road network and a vibrant rural economy. Creating a Rural Roads Support Fund will assist rural councils to repair and improve the local roads that service major industries and communities. Increasing funding to VicRoads to improve key linking roads in rural Victoria will also allow the agency to close the maintenance gap between metro and rural roads in Victoria. Smarter service delivery Page 10 KEY MEASURES: State takeover of funding for rural crossing supervisors Moving fire prevention activities into the CFA s budget Rural Victorians have many traditions, but outdated funding models is one we could do without. As part of a broader discussion about how rural councils and the state government share responsibilities for service provision, we ve identified two areas for immediate action. Bringing school crossing supervisors and fire prevention activities under the umbrella of the state government reflects best practice and better meets the needs of rural workers and their communities. 4 Victorian Budget Submission

5 A strong voice for rural Victorians Page 12 KEY MEASURES: Ongoing funding for Rural Councils Victoria $3.5 million over four years A new Minister for Rural Communities The 750,000 Victorians who live in rural areas have unique needs they need a voice that represents them. Rural Councils Victoria performs vital work supporting rural communities across the state. Continuing to support this work will ensure no Victorian gets left behind, and everyone has a place at the table. Financial sustainability for rural councils Page 14 KEY MEASURES: Funding to set up collaborative procurement projects $5 million Funding to set up energy saving projects $5 million Delivering long-term savings sometimes requires a significant initial investment that s where the Victorian government can help. To squeeze the most we can out of every dollar we have, rural councils across Victoria are looking to set up shared services and collaborative procurement. Setting up a new grant program to help rural councils become more efficient would ease the burden of rate capping, and help councils deliver services to communities for generations. 5

6 Fixing up ageing roads RURAL VICTORIANS NEED Creation of a Rural Roads Support Fund $200m over four years VicRoads funding to repair key rural roads $100m over four years Implement the liveable rural communities fund $100m over four years With small ratepayer populations, limited sources of revenue and thousands of kilometres of roads to maintain, rural councils are starting from behind when it comes to maintaining the key road links that keep Victoria s produce economy going. For rural councils, the gap between revenue and infrastructure expenditure is significant, and growing. Councils like West Wimmera Shire on the South Australian border, which has just over 4,500 people yet manages nearly 3,000km of roads, are facing an insurmountable challenge of maintaining an extensive road network on a shoestring budget. Closing the rural infrastructure gap needs government investment. By creating a Rural Roads Support Fund, which co-invests with councils in repairing key local roads, rural councils will be able to maintain the roads communities rely on. An injection of extra funding to VicRoads to repair rural main roads will also help regain some of the lost ground and keep up with the wear and tear rural roads face from constant freight movements. A liveable rural communities fund would assist rural councils to capitalise on investment through developing complementary infrastructure for pedestrians and public transport. 6 Victorian Budget Submission

7 BAD ROADS COST LIVES Long distance travel is a part of life in rural Victoria, but it shouldn t cost your life to live here. Despite our smaller population, more than half of all road fatalities occur in rural and regional Victoria, making regional Victorians more than four times more likely to die on their roads than Victorians living in Melbourne. Come from rural Victoria via rural roads Rural economies need roads Regional Victoria produces a third of the state s exports, and the regional road network is the link holding these economies together. When rural road links break down, so do rural businesses, adding thousands of dollars in fleet maintenance and overheads. In Gippsland, dairy producer Murray Goulburn s logistics team estimates poor quality local roads add up to 20% in additional maintenance costs compared with other regions. Nearby, vegetable producer Select Produce has had to invest in sturdier packaging to prevent products being destroyed in transit on rough roads, adding up to 10% in packaging costs. Worst of all, this ratio is getting worse. Rural and regional fatalities have risen dramatically, with 20 more Victorians dying on our roads in the year to March 2017 than in the year before well above the five-year average. Of the 15 local government areas with the highest fiveyear average fatalities, 11 are located fully or partially in regional Victoria, and this measure doesn t even account for population. Unmaintained roads are dangerous roads, and the continued decline of road quality in rural Victoria is putting families at risk. Road fatality location per 100,000 population 8.7 Co-investment between councils and the state government in critical road links will allow producers to reduce unnecessary overheads, improve freight efficiency, and support local producers in keeping thousands of secure jobs in rural Victoria. Expanding existing partnerships Through the Local Roads to Market program, rural councils have demonstrated that local government is a valuable partner, who can add significant value to state government investment in roads projects. Creating a Rural Roads Support Fund would allow for further development of this partnership, driving closer cooperation that benefits rural Victorians with the best return on investment. 1.9 Melbourne 7

8 A little goes a long way. Here s where we d make a difference. BRIDGEWATER-SERPENTINE RD SALISBURY WEST RIPON A major school bus and heavy transport thoroughfare, Bridgewater-Serpentine Road is the main link between a number of small communities outside Bendigo. Urgent resurfacing works are required to ensure the road remains a safe and reliable connection for local families. CAPE OTWAY ROAD MORIAC SOUTH BARWON With no constructed road shoulders, a 100 km/h speed limit and a high accident rate, Cape Otway Road is in need of urgent upgrades. Bringing road bends up to standard and resurfacing the extensively patched road would significantly improve the safety of the up to 3750 vehicles who use the road every day in the summer season. RAINBOW-NHILL ROAD RAINBOW LOWAN Truck movements have been heavily restricted on the approach to Rainbow, as the single-lane road with blind corners was placing local school buses at risk of headon collisions with freight trucks. To ensure local agribusiness can use the road and make the journey safer for students, this road desperately needs widening. 8 Victorian Budget Submission

9 RUBY-AWARATA ROAD BRIDGE RUBY GIPPSLAND SOUTH The 101 year-old bridge is the primary connection many local farms have to the South Gippsland Highway. A recent engineering report concluded the bridge is at the end of its useful service life and needs urgent replacement. If the bridge isn t replaced soon, communities may be cut off from freight and supply routes. COBDEN-LAVERS HILL ROAD COBDEN POLWARTH Part of a network of roads ferrying tourists to the Twelve Apostles, Cobden-Lavers Hill Road is battered by a constant stream of vehicles. The hazardous state of the road is amplified by the large number of tourist drivers who are unfamiliar with the region and more likely to find themselves involved in an accident. This road needs urgent repair. It s worked before. HIGH STREET WEDDERBURN RIPON With co-investment from Regional Development Victoria and the Federal Government, Loddon Shire was able to transform the Wedderburn shopping strip. The new streetscape will have more accessible pedestrian facilities, improved drainage and improved safety features. Businesses facing onto the strip have already reported improved turnover, with the new facilities encouraging locals and visitors to spend more time in the small businesses along High Street. A small amount of funding is making a world of difference to the small businesses in Wedderburn imagine what a dedicated funding program could achieve for other towns across rural Victoria. 9

10 Smarter service delivery RURAL VICTORIANS NEED 1 State funding models for key services, particularly: a b A state takeover of funding for rural school crossing supervisors Moving fire prevention activities into the remit of the CFA Let s do better by working together Local governments are used to working in partnership with other levels of government to deliver services. From immunisation programs to emergency services, rural Victorians rely on projects funded jointly by state and local government. While many of these partnerships work well, we think they could work even better. Often, funding models are maintained purely for historical reasons rather than a logical connection. For example, councils have assumed responsibility for road crossing supervision and make a contribution to the costs of that service. Crossing supervisors at schools may be managed and report to the Department of Education for various functions, but paid by councils, leading to a complex web that makes service delivery worse for employees, schools and students. If councils continue to bear responsibility for funding programs in areas where they lack expertise and economies of scale, it s unlikely that rural Victorians are going to see best practices or good value for money. We can do better. By taking over programs state government is best placed to deliver, the Victorian government will help free up struggling rural councils to deliver the services only a local council can provide. 10 Victorian Budget Submission

11 Student safety begins before the school day does From procurement, to IT, to staff parking, Department of Education staff are used to and effective at managing the range of programs that keep schools running and student needs met. In most areas, these programs work well, but there s a noticeable hole crossing supervisors. When the Victorian government first identified the need to subsidise crossing supervisors in 1975, cost sharing was set a two-thirds state government, one-third local councils. Since then, demand has increased, traffic has become more hazardous and the funding share has change dramatically. Now, councils bear 80% of the cost of funding crossing supervisors. For rural councils with large numbers of small schools and a declining revenue base, providing crossing supervisors under this cost-sharing model is become unsustainable. Moving responsibility for school crossing supervisors to sit solely within the state government would streamline reporting and management, reduce a significant cost burden for councils, and allow the Department of Education to better identify supervisors to areas they are most needed. SCHOOL CROSSING SUPERVISOR FUNDING LEVEL CHANGES MAV, % 33% State funding contribution 80% 20% Council funding contribution LET S LEAVE FIRE PREVENTION TO THE EXPERTS Fire prevention isn t something to be taken lightly it s a life or death matter. While everyone has a responsibility to make sure they reduce fire danger, local governments in rural Victoria are still in charge of a range of fire prevention activities despite lacking the expertise or funding to deliver them in the most effective way. Currently, local councils are responsible for maintaining many fire breaks and access tracks used by state agencies. For councils like Towong Shire, which takes in thousands of kilometres of state and national park and fewer than 6,000 residents, maintaining this infrastructure isn t just a challenge it s impossible. With organisations like the CFA and DELWP dependent on many of these routes during routine maintenance or emergencies, it doesn t make sense for small councils to manage these critical pieces of infrastructure when state agencies could manage them more effectively and in line with their needs. Moving responsibility for maintenance of access roads and fire breaks to within the remit of the CFA and DELWP would put management back in the hands of experts and free up councils to spend time on other fire prevention activities. 11

12 A strong voice for rural Victorians RURAL VICTORIANS NEED 1 2 Ongoing funding for Rural Councils Victoria $3.5m over four years A Minister for Rural Communities Keeping rural Victorians in the conversation Representing the 750,000 people who call rural Victoria home, Rural Councils Victoria has worked to connect rural communities for more than 10 years. From policy and research work that examines the needs and trends of rural Victoria, to developing programs that help local councils attract and engage with residents, we re a vital link between towns from Murrayville to Mallacoota. Rural Councils Victoria requires ongoing funding to complete this important work. Continuing to fund RCV at $3.5 million over four years will fund staff, support research and training, help us continue to run innovative events and give rural councils a voice on key policy proposals. But representation of rural Victorians goes beyond the council level. Ensuring that policy development considers the unique needs of rural communities needs to happen at all levels of government. A dedicated Minister for Rural Communities would be well-placed to ensure no Victorians are left behind. 12 Victorian Budget Submission

13 WE CONNECT COMMUNITIES Rural Councils Victoria is more than just an advocacy group. We run events, training and research to ensure rural Victorians have access to high-quality services and localised information. The events RCV runs bring communities together and ensure local governments continue to improve and learn from each other. Our 2016 Rural Summit program in Marysville brought council officers and leaders from across rural Victoria together to learn from experts like Rowena Allen, Victoria s first Gender and Sexuality Commissioner, and attend our innovation showcase, where councils are able to show off many of the exciting initiatives they ve developed to support the unique needs of rural Victorians. RCV also produces resources for rural businesses and community groups, like research and recommendations on how businesses in rural Victoria can continue to grow. By providing rural Victorians with important, relevant advice, we play a key role in information provision. Or work connects communities and keeps rural Victoria a fantastic place to work and live. Ongoing funding will ensure these vital programs can continue. A Minister for Rural Communities For Victorians living in cities, regional and rural Victoria are often put in the same basket. In reality, the needs of regional cities like Geelong and small rural communities like Nhill couldn t be further apart. That s why rural Victorians need a dedicated voice in cabinet. A Minister for Rural Communities will give the 1 in 10 Victorians who live in rural areas a spot at the cabinet table, ensuring policies deliver for all Victorians not just those in our cities. 13

14 Financial sustainability for rural councils RURAL VICTORIANS NEED 1 2 Funding to set up collaborative procurement projects $5m over four years Funding to set up energy saving projects $5m over four years Small revenues, big responsibilities Rural Victorians love our wide open spaces and tight-knit communities it s what makes the region such a fantastic place to live and work. But despite the benefits, rural life has its challenges, and so do rural councils. Maintaining extensive road networks and running programs across thousands of square kilometres are costly exercises, and rural councils are finding it increasingly hard to meet the needs of rural Victorians. Rural councils want to be more efficient to keep rates low for residents, spend revenue responsibly and deliver fantastic liveability. By investing in shared service provision, energy saving programs and collaborative procurement, councils will be able to make every dollar go further, but we need the state government s help to get there. The costs of setting up shared service provision are beyond the means of rural councils despite the long-term savings. With state government support to combine services and invest in cost-saving measures, rural councils will gain longterm sustainability and rural Victorians will continue to enjoy the service provision they deserve. 14 Victorian Budget Submission

15 Sharing procurement and services As rural councils like Towong Shire know it s hard to develop an economy of scale with just 5,985 residents. Rural councils across Victoria consistently pay more per unit for products and services than metropolitan councils, further entrenching the inequality rural Victorians face in receiving equal and affordable services. Service provision to councils also has savings opportunities. While the large proportion of council services benefit from a local presence, some operations can be delivered remotely just as efficiently. IT services, telecom and communications, and other support services could be delivered remotely in bulk and save councils thousands. Unfortunately, it can cost a lot of money to shift services and procurement to a shared model. Fortunately, the state government can help. With a small grant, rural councils could set up collaborative services and deliver better outcomes for the long-term. Save money, save the planet With the cost of energy continuing to rise, rural councils can make an enormous dent in their expenses by investing in energy saving schemes. Rural Victorians are also more likely to be severely effected by climate change than Victorians living in cities, with agribusiness, forestry and water supplies all seriously threatened by extreme weather. For both reasons, it makes sense for rural councils to invest in reducing energy use and charting a sustainable energy pathway for the future. For small councils however, the lack of economies of scale makes it difficult to source affordable products and develop programs to cut down on energy use. A small commitment to assisting rural councils to set up an energy saving task force would assist with collaborative procurement, allow for management and transport of bulk purchases and develop best practices to be transferred most efficiently to every corner of Victoria. We ve already started. ENERGY SAVING PROGRAM A LIGHT IN THE DARK QUEENSCLIFF BELLARINE Despite being the smallest council in Victoria, the Borough of Queenscliffe has one of the state s most ambitious lighting replacement programs, swapping out the vast majority of street lights with energysaving LED alternatives. Despite their success, Queenscliffe faced significant challenges getting the program under way. Procurement, understanding the market and obtaining economies of scale were major hurdles, and initial interest from other councils in a cooperative program was stymied by joint procurement obstacles. An energy saving working group would allow councils across Victoria to learn from each other and work together to reduce energy costs and their environmental impact. 15

16 Rural Councils Victoria, 2017