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Thursday, June 1, 2023

Local Government Minister Ron Hoenig criticises Tamworth council spending amid levy stoush - ABC News

A war of words has broken out between regional NSW mayors and Local Government Minister Ron Hoenig regarding council spending.

In state parliament this week, Mr Hoenig said a new report on financial spending painted a "frightening picture of local government" in New South Wales, with financial errors worth $1.3 billion made by councils.

He also criticised councils for complaining about having to pay the emergency services levy, saying local governments needed to fix their own financial issues before asking for more money from the state government. 

"I am going to ask them [local councils] about their financial accountability and their expenditure before they start asking the state to pay for the fire trucks going down their street, which they are responsible for paying for."

Mr Hoenig called out Tamworth council, among others, saying "they are quite happy to embark upon some egregious expenses".

He pointed to a $13,000 overseas trip to US city Nashville in 2018 by senior council officials. 

Spending by Tamworth Regional Council was directly pointed out by the Minister. ()

Councils feel unsupported

However, Tamworth Mayor Russell Webb defended the trip, saying it was necessary to maintain key industry links with their sister city and benefits through tourism engagement, marketing and possible future trade. 

Cr Webb said local councils felt unsupported, and the Minister was fighting against them rather than for them. 

"He's not really the Minister for Local Government, he's the minister fighting against local government," he said.

Cr Webb said a new funding strategy needed to be put in place to help fund the emergency services levy.

"We need those emergency services to do what they do and we're really very grateful for the work they do, but we need to talk to the government about funding that under a different model," he said.

Tamworth Mayor Russell Webb has defended the spending of previous councils. ()

The levy, which funds agencies like the Rural Fire Service, is mostly paid for as part of insurance premiums.

But the state government and councils contribute 14.7 and 11.7 per cent respectively.

Local Government New South Wales last month said changes to the levy would send 2023-24 council budgets — which were subject to a rate cap of 3.7 per cent — into "meltdown".

The change means an extra $77 million will need to be found collectively by 128 councils.

Accusation of cost-shifting

Hay Shire Mayor Carol Oataway said she also was disappointed by the Minister's comments. 

Hay Mayor Carol Oataway says she is disappointed by what the Minister said. ()

"Councils are facing financial pressures the same as everyone else and they're not immune to inflation and rising costs," she said.

"The emergency services levy is just another example of cost-shifting from the state government to councils." 

Local Government New South Wales responded in a statement, saying it was "disappointed at the unprovoked attack by the Minister".

President Darriea Turley said the levy change was "nonsensical".

"The surprise increase in the emergency services levy imposed by the state government onto councils will undoubtedly lead to service cutback and job losses in some local government areas."

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Local Government Minister Ron Hoenig criticises Tamworth council spending amid levy stoush - ABC News
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