STATEMENTS BY MEMBERS

Mr FARLEY (Farrer) (13:33): I rise today to condemn a profound failure of transparency that strikes at the heart of our federal funding dynamic and threatens the survival of local governments in New South Wales. The Commonwealth Financial Assistance Grants are a direct federal lifeline, yet, under the guise of an arbitrary methodology review, the NSW Local Government Grants Commission is quietly short-changing our local communities.

The scale of this redistribution is staggering. Of our state's 128 councils, 63 are facing devastating funding cuts. These cuts hit at the worst time possible.

Our councils are battling hyperinflation across their entire cost base, with soaring costs for bitumen, concrete, steel and insurance that local governments have no control over. Instead of throwing them a lifeline, this state government is throwing them a financial anchor. What makes it offensive is a complete lack of accountability.

The New South Wales government refuses to disclose the exact methodology or formulas driving these reallocations. They've given councils an unacceptably short window to respond to numbers they cannot verify. This is a distortion of federal intent.

The Commonwealth allocates these funds to assist communities, not to give the state a lever to punish. I call upon the minister to ensure that the states are operating to the intent of the federal assistance grants act of 1995.