Media Release

KAP Leader and the Federal Member for Kennedy Bob Katter MP has been speaking with Local Government representatives and is opposed to the Federal Government freezing the CPI for Financial Assistance Grants, (FAG’s) a lifeblood for rural and Remote councils.

“The freezing of the CPI for Financial Assistance Grants is going to leave councils almost universally near bankrupt.

"The freeze is going to starve them even further of funds. The Financial Assistance Grants have always favoured regional and rural councils and were given in fact to overcome the lopsided funding effect, where the city and the majority take all and the North West and rural councils get virtually nothing,” Mr Katter said.

The freezing of the CPI for FAGS grants adds further pressure for remote councils that are already overwhelmed with the State Government continuing to pass the buck, adding additional responsibilities without providing extra financial assistance.

Mr Katter believes the State Government is pork barrelling and is crying poor – when in fact they have just siphoned funds into metropolitan infrastructure projects.

Mr Katter said, “The LNP State Government are saying they are bankrupt – with no money to spend on North Queensland, yet the State Government have been able to pluck out of thin air:

• $5000 million for yet another tunnel in Brisbane, 
• $1000 million for the Premiers Taj Mahal and 
• $2000 million to solve a petty dispute between secondary and primary divisions of the Education Department.” 

Mr Katter says rural and regional councils cover large areas and receive less revenue will be the worst off and with the freezing of the FAG’s, a vital component of their income will be stripped away.

“It is a small, but very significant part of the council’s budget. The State Government has imposed impossible cost structures and subdivisional requirements not only crippling councils financially but stopping development and job creation,” Mr Katter said.

Mr Katter has submitted a question with notice to the Treasurer asking him to address this issue and asking for assurance that rural and remote local Governments will not be disadvantaged by the freeze.

Question with notice to the Treasurer

“Can he provide assurances that rural and rural/remote Local Governments will not be disadvantaged by the freeze on the Consumer Price Index for Financial Assistance Grants?”