VIC: Govt denies councils NCP compensation cash

AAP General News (Australia)
12-21-1998
VIC: Govt denies councils NCP compensation cash

MELBOURNE, Dec 20 AAP - Victorian councils were being deprived of millions of dollars in
compensation which the state government was refusing to pass on, the state opposition said
today.

The Kennett Government had reaped $4.9 billion in compensation payouts from the federal
government to make up for costs associated with implementing national competition policy,
opposition treasury spokesman Steve Bracks said.

But the state's councils, which suffered job upheaval and extra costs as a result of being
forced to tender out services, would only receive a "miserly" $44 million over five years.

The government had "pocketed" 90 per cent of the money.

"This represents a windfall gain for the government at the expense of local councils and
local services which have had to bear the brunt of compulsory competitive tendering (CCT)
arrangements," Mr Bracks said.

"Despite having laid out millions of dollars to implement CCT some councils will receive as
little as $50,000 this year in compensation," he said.

A government spokesman rejected the claim, saying it had no obligation to pass any of the
money on to local government.

"There is no requirement on the state government to pay any money across to local
government," he said.

Councils would receive some money over five years as a recognition of their achievements,
he said.

Victorian Local Governance Association spokesman Andrew Rowe described the funds for
councils as "chickenfeed".

"Local government should get an increased share as a proportion of the pain and suffering
gone through to achieve compulsory competitive tendering," he said.

AAP lmw/ra/cjh/de

KEYWORD: COUNCILS

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