The Local Government and Shires Associations of NSW have rejected the NSW Minister for Roads and Western Sydney David Borger's comments proposing amalgamations of Sydney councils.

President of the Local Government Association, Cr Keith Rhoades AFSM, has slammed Minister Borger's comments and reiterated the LGSA's opposition to forced amalgamation.

"The Associations have always been, and will continue to be, opposed to forced amalgamations of local councils. If councils wish to voluntarily discuss amalgamation then this is encouraged, but at no time do we endorse third party pressure being placed on councils to amalgamate," said Cr Rhoades.

The Local Government and Shires Associations of NSW (LGSA) are calling on all political parties to scrap Part 3A and end the State Government's 'reign' over the NSW planning system.

The expansion of the natural gas network to regional communities across Victoria is a step closer as the government progresses the delivery of its $100 million Energy for the Regions program.

The Royal Bank of Scotland (RBS) has just released a report 'A different perspective on the "two-speed" economy' which found during the first stages of the resources boom, unemployment was actually very low across the entire country.

Golden Plains Shire councillor Bill McArthur has been re-elected president of the Municipal Association of Victoria (MAV) for a two-year term.

Cr McArthur said he looked forward to serving local government alongside new and returning Board colleagues and MAV executives.

“Together we will deal with the challenges and opportunities facing the sector,” Cr McArthur said in a statement.

“Key priorities for me will be to advocate the need for the State Government to consult with local government as a key stakeholder in decision making and to continue to represent the collective and influential voice of local government across Victoria – responsibly, ethically and passionately.”

MAV also announced the election of 12 regional Board representatives: Cr Gaetano Greco (Darebin); Cr John Sipek (Moonee Valley); Cr Coral Ross (Boroondara); Cr Mary Lalios (Whittlesea); Cr Lisa Mahood (Wodonga); Cr David Clark (Pyrenees); Cr Reid Mather (Buloke); and Cr Jeff Amos (Wellington).

They join four regional MAV Board members elected unopposed last month: Cr Rod Fyffe (Bendigo); Cr Ken Gale (Moyne); Cr Geoff Lake (Monash); and Cr Geoff Gough (Manningham).

Councils in Queensland will face average cost increases of 7.5 per cent, according to the latest local government cost index report.

Commissioned by the Local Government Association of Queensland (LGAQ), the 2011 council cost index report forecasted an increase in the cost of road and bridge construction, due to the recent natural disasters.

The report found that councils unaffected by the disasters would face significant increases in their costs because of state-wide demand for construction resources.

LGAQ chief executive Greg Hallam said the hike in construction costs should be considered when setting rates.

"They need to reconcile increased community expectations about the level of services they provide with the capacity to pay for those services,” Mr Hallam said in a statement.

"But councils would not be contributing to the financial sustainability of their communities it they tried to limit rate increases to just the CPI level.''

The report estimated that damage caused by the floods and cyclone would add an extra 15 per cent on the total amount of public capital works across the state.

Local government researchers and tertiary institutions now have the opportunity to conduct original research that will benefit the sector under an initiative undertaken by the Australian Centre of Excellence for Local Government.

A $1 billion Regional Development Australia Fund has been established by the Federal Government to drive economic development in regional and rural Australia.

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