Media Release

KAP Federal Member for Kennedy Bob Katter today labelled the Federal Government hypocrites amid reports that one option to fund their drought assistance stimulus injection package would be to bring forward money for projects identified by local Councils under the Financial Assistance Grants (FAG) program.

The same Government last year froze FAG funding for local Councils so that it no longer increases in line with inflation, a move which deprives rural and regional Councils of a much needed source of income.

Mr Katter said today the proposal to bring forward funding otherwise earmarked under FAG was no win for Councils, who had already seen their funding slashed.

“The hypocrisy involved where in the one budget they stopped the indexation and now they want credit for giving this money back to the Councils, the same money they’d taken away?

“That’s not robbing Peter to pay Paul, that’s robbing Peter to pay Peter,” Mr Katter said.

Mr Katter said that the FAG freeze has already starved Councils of much needed funds.

“FAG funding has always favoured regional and rural councils and was given to overcome the lopsided funding effect where the city and the majority take all and the North West and rural councils get virtually nothing.

“The freezing of FAG funding adds further pressure for remote councils that are already overwhelmed with the State Government adding additional responsibilities without providing extra financial assistance.”

Mr Katter said today that Governments must realise that away from the narrow coastal strips the inland population of Australia had been vanishing, in this case meaning a lack of income for local Councils from rate payers.

“You only have to look at the number of members of Parliament where about seven members represent 80 percent of the surface area of Australia.

“The land is emptying and if we don’t want it, then someone else will, that’s the reality of history - a people without land will take a land without people.

“All of the area of inland Australia is being sold to foreign corporations that are from countries hugely over burdened with population.

“The pettiness of Governments in taking away about $100 million in FAG grants in the one year and the hypocrisy in giving back $20 million in self-help projects in the next year, well you wonder why people don’t like politicians,” Mr Katter said.