Local Government: Financial Challenges

Mr Fletcher asked the Minister for Regional Australia, Regional Development and Local Government, in writing, on 16 February 2012:

What work has the Government undertaken or commissioned into the financial challenges facing local government in Australia, and can the Minister indicate the extent to which the Government has given consideration to the creation of a municipal bond market in Australia.

Mr Crean: The answer to the honourable member's question is as follows:

The Australian Government has commissioned two studies relating to the financial challenges facing local government:

The Department has commissioned Ernst & Young to conduct an analysis of prioritisation and financing of local government infrastructure. Ernst & Young is expected to deliver a final report for the Government's consideration in late April 2012.

The Government is reviewing the equity and efficiency of the total current funding provided for local government through the Financial Assistance Grants program. The review is expected to be completed in 2012-13.