The Weekly Advertiser - Wednesday, January 16, 2019

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Vol. No. Vol. 2118No. 27 27

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Wednesday, January January 16, 13, 2019 2016 Wednesday,

CELEBRATION: Horsham and Nhill’s Karen communities enjoyed their first Horsham Karen New Year celebration at the weekend. Mu Tar Teo was among performers who took to the Horsham Town Hall stage to showcase traditional dances for hundreds of guests. Story page 5. Picture: PAUL CARRACHER

Call for action BY COLIN MacGILLIVRAY

R

ural Councils Victoria committee member and Hindmarsh Shire councillor Rob Gersch believes Wimmera residents must rally behind their local councils and help lobby the state government to change the way they are funded or risk losing vital services.

Cr Gersch’s call for action comes in the wake of a report released by the Victorian Auditor-General’s Office on the results of its 2017-18 local government audits.

The report paints a grim picture for small rural councils, especially those in Victoria’s north-west. According to the audits, every council in the Wimmera is currently considered at medium to high risk of not generating enough surplus to fund operations. The report projects that all Wimmera councils will be in the high risk category by the 2020-21 financial year. Another area of concern for councils is capital replacement, with indications that capital expenditure — money spent on physical assets including

buildings, infrastructure and equipment — is in danger of falling below a stable level. Hindmarsh Shire is one of the worst affected councils. The report projects the council to be at high risk in four of seven financial risk indicators, and medium risk in another two, by 2020-21. Cr Gersch said with populations declining in many rural areas of the state’s north-west, there were not enough ratepayers to generate the money councils needed to operate. He said the state Labor govern-

ment’s pre-election promise to conduct a review of rates in the state was a start, but would not produce a longterm solution. He said the government needed to change the way councils were funded to make them sustainable. “With small councils, we don’t have the income coming from rates,” he said. “Ratepayers don’t have the capacity to pay, so even if there was ratecapping, we’d still have a problem. “There is an inquiry going to happen this year, not just on farm rates or

differential rates, because they have to look at the whole structure of rates. “Small councils rely on the grants commission to allocate funding every year, and various other grants. “I think the government is going to have to look at installing some sort of safety net for councils so that they are guaranteed a minimum amount of money. “Whether it is through the grants commission or a one-off for councils where they receive funding, I’m not sure, but something needs to change.” Continued page 3

IN THIS ISSUE • Lionhearted Lenny leaves legacy • Rodeo plans at Goroke • Baker ‘King of the Rock’

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