The president of the Australian Local Government Association has been touring the country to rally support for the full restoration of Financial Assistance Grants.

ALGA President Mayor Troy Pickard raised local government's concerns about the cut to the indexation of the Financial Assistance Grants (FAGs) in a meeting with Dr Peter Hendy, the Member for Eden-Monaro, at Parliament House this week.

The meeting is part of an ongoing series of talks Mayor Pickard is having with Federal MPs, raising attention on local government priorities, particularly on the impact of the 3-year freeze in the indexation of FAGs on councils.

The freeze is estimated to cost councils $925 million over the period of 2017-18 and its impact will be felt most in rural and regional councils, which are most dependent on the grants. ALGA has called for the restoration of indexation as soon as possible.

While the untied FAGs for this year have been distributed and willingly received, comments by the president of the Local Government Association of the Northern Territory show why they should be restored in full.

“Financial Assistance Grants are untied so this money can go towards delivering a range of projects that are identified as priorities to local needs,” LGANT president Damien Ryan said.

“For one community it could mean going towards a swimming pool or a community hall, for another it might mean upgrading a park – it’s no strings attached, it’s for the benefit of the community.

“Unfortunately, the freeze on indexation of the grants still remains.

“These grants are a vital part of the revenue base of all councils and they are used to help fund essential local services and infrastructure.”