Kategoriarkiv: LGFA Australia

Update: A new Local Government Funding Agency (LGFA) in Australia?

Ernst & Young is currently undertaking a piece of work for the Australian Government, which includes assessing the feasibility of establishing a national financing authority for local government in Australia. This builds on the finding in the report ”Strong Foundations for Sustainable Local Infrastructure” that there is a suboptimal use of debt finance in the local government sector which is contributing to the under provision of infrastructure.

In this work Ernst & Young have studied Kommuninvest and the LGFA in New Zealand.

The objectives of establishing an agency that ”Strong Foundations for Sustainable Local Infrastructure” puts forward are in short:

  • To provide all councils in Australia with access to lower-cost debt finance,
  • To establish a conduit between councils and capital lenders
  • To provide financial and legal assistance and expertise to those councils with limited in-house capacity
  • To provide finance to qualifying regional bodies which have responsibility for community infrastructure
  • To apply rigour and discipline in financial planning
  • To act as a “bank” with the ability to develop financial products for the private investor market
  • To provide and facilitate due diligence and prudential oversight for the sector

In a mail I have received from Ben Carlton Jones, Ernst & Young Australia, he emphasises that that the proposal for a collective financing vehicle is still at a very early stage, and there is no policy commitment from the Government or any of the states or territories in Australia.

I and, surely, the existing local government funding agencies would warmly welcome an Australian agency.

Lars M. Andersson

Kommentarer inaktiverade för Update: A new Local Government Funding Agency (LGFA) in Australia?

Under LGFA Australia