FAGS we cannot give up, costing us $784,000 over three years

A FEDERAL Government decision to pause indexation of grants it gives local government will cost the Clarence Valley $784,000 over the next three years.

To put that in perspective, the amount is more money than the Clarence Valley Council will raise with its pegged rate increase for 2014/15.

On Tuesday the council adopted a report noting the importance the council placed on the Financial Assistance Grants (FAGS) it received from the Commonwealth totalling $10.256 million and that it correctly identify all Commonwealth grant funding in its publications.

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The report came to council in response to a letter from Local Government NSW requesting it join other councils in Australia in a campaign against the pause in indexation.

The pause was a measure in the 2014/15 Federal Budget aimed at saving $925 million over four years.

To achieve the saving the government would not index payments to the CPI from 2014/15 to 2017/18.

Also on Tuesday Federal member for Page Kevin Hogan announced the latest instalment of the grant payment, $2,563,851, to the council.

For the council's director - corporate, Ashley Lindsay, it was another example of the difficulties councils face securing funding for their works programs.

Mr Lindsay will delve more into this issue in tomorrow's Examiner.



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