Port Macquarie‑Hastings Council (PMHC) executives have appeared before a federal inquiry into local government financial sustainability to advocate for fairer and more consistent funding to assist the region's rapid population growth.
Last Friday (May 8), PMHC's General Manager Robert Fish and Director, Business and Performance, Keith Hentschke appeared before the Inquiry into Local Government Funding and Fiscal Sustainability by the Federal Standing Committee on Regional Development, Infrastructure and Transport that was held in Taree.
In his opening statement to the Committee, which also heard from councils including Mid Coast and Dungog, Mr Fish said, "our submission outlines a broader issue - that local government is facing a structural fiscal challenge, not a temporary funding shortfall".
"Over time, councils have been expected to carry broader and more complex responsibilities beyond our core services, which we seek to prioritise, and often were once the responsibility of other levels of government," Mr Fish said.
"As well, in the Port Macquarie Hastings region, history has dictated we are prone to natural disasters and this has seen an acceleration in asset deterioration as cumulative impacts on council's assets mount - roads in particular.
"Severe weather events and flooding in recent years have shown that disaster preparedness, response, recovery and community adaptation are now business-as-usual funding responsibilities across all levels of government."
The inquiry - which commenced public hearings in February - will examine the financial relationship between local government and state and federal governments, with a particular emphasis on funding mechanisms and fiscal sustainability.
It is the second time in recent years PMHC has provided a submission and attended public hearings related to local government financial sustainability, the first being in 2024. The current submission provided details on how the region was continuing to grow, how the council was trying to manage this growth and how funding programs could help.
Mr Hentschke added that Port Macquarie Hastings current population of 92,650 was projected to increase to more than 103,000 by 2035. He said council was advocating for annual funding programs that support longer term financial planning and the construction and renewal of complex infrastructure.
"To plan for this growth, we have two significant utilities projects requiring an investment of $400 million in coming years, being a water treatment plant at Cowarra that will ensure a reliable supply of filtered drinking water and a wastewater plant at Thrumster to accommodate current and future demand.
"However, this population growth continues while the revenue base available has remained tightly constrained.
"Councils are increasingly reliant on a fragmented system of tied, competitive and short‑term grant programs to deliver services and assets that are ongoing and essential.
"Whereas routine annual funding supports local decision‑making rather than forcing councils to chase restricted grants for specific projects."
PMHC also recommended to the Committee:
- Fund the full lifecycle of projects
- Provide stable, multi-year funding programs
- Ensure fair funding settings
- Invest in resilience
- Build regional capability through targeted workforce development
The committee is currently touring throughout regional Australia to hear from a broad spectrum of councils and joint organisations.
