Councils need $2.8 billion to fix roads

The NRMA’s annual report into the financial assessment of regional and metropolitan councils found a $2.35 billion backlog among regional councils (2021/22: $2.18b) and a $468 million backlog among Sydney metropolitan councils (2021/22: $411 million), representing an increase of nine per cent on last year. 

Across metropolitan Sydney, the central and southern councils had a combined backlog of $168 million representing a 27 per cent increase on the previous year; northern councils saw a combined backlog increase of 26 per cent to $64 million. 

Across regional NSW, councils which saw significant increases included Capital Country (147% increase to $78.9 million), Mid-North Coast (78% increase to $277 million and Far West Council (66% increase to $38.7 million).   

Meanwhile, Orana Council saw a fall in backlog funding of 67 per cent to $71.7 million and the Northern Rivers Council saw a backlog funding fall of 12 per cent to $419 million.  

The Federal Budget was delivered last month and the NSW Budget will be handed down later this month. Funding levels from both governments would need to increase four-fold from the current combined funding of $540 million to meet the $2.8 billion backlog (based on recurrent funding only). 

The NRMA is calling on both levels of government to increase funding support to the state’s councils as they are responsible for maintaining over 85 per cent of the road network. 

Most councils – particularly regional councils – lack the revenue streams to meet this increasingly burdensome commitment, with the state’s road network coming under considerable pressure over the last 18 months with record levels of rainfall causing widespread pothole damage. 

To amalgamate and streamline council road funding, the NRMA is also calling for a review of the three recurrent grant programs, as well as a number of ad hoc funds from both levels of government. A review of these programs is necessary to provide surety and ensure a sustainable funding stream going forward. The safety and efficiency of people and freight movements on our roads is critical. 

NRMA spokesperson Peter Khoury said the state’s roads had been battered over the last 18 months with record levels of rainfall and councils would need significant funding support to keep the road network maintained to a safe standard. 

“Councils – in particular regional and outer Sydney councils – do the lion’s share of road maintenance in NSW and the NRMA wants them to receive the necessary funding to keep our road network at a safe standard,” Mr Khoury said. 

“We have disparate funding programs at a federal and state level with falling revenues leaving many regional councils disadvantaged – this obviously needs to change. 

“The councils’ own financial reporting shows a state-wide backlog of $2.8 billion, there is approximately $540 million in funding and the state’s road toll is almost 20 per cent higher than last year – the public has a right to demand this imbalance is rectified.”