Ursula Stephens (NSW, Australian Labor Party, Parliamentary Secretary Assisting the Prime Minister for Social Inclusion) Share this | Hansard source

I thank Senator Macdonald for his contribution to the debate on the Financial Assistance Legislation Amendment Bill 2009 and for his ongoing support for local government. Can I explain quite clearly why this bill is being brought forward. Under the Local Government (Financial Assistance) Act as it currently stands there is no mechanism for the Commonwealth to respond quickly and responsibly to support local government by bringing forward a portion of next year’s financial assistance grants. So the amendments we are seeking here are simply to provide the flexibility to advance payments from the next financial year to the current year. The amendments will also increase the general drawing rights authorising debits from the COAG Reform Fund for the purposes of making grants of general revenue assistance to the states. The government is looking forward to the passage of this bill to enable the Commonwealth to provide that general purpose financial assistance to the states and of course to help local government meet the current economic challenges. I commend the bill to the Senate.

Question agreed to.

Bill read a second time.