Federal funding freeze costing region millions

WARREN Truss is playing hardball on a funding freeze that is costing the Northern Rivers millions of dollars, according to local councils.

WARREN Truss is playing hardball on a funding freeze that is costing the Northern Rivers millions of dollars, according to local councils.

Councils are feeling the pinch as the Federal Government's three-year pause on financial assistance grants indexation enters its second year.

The Deputy Prime Minister's office said there would be no back-down on the 2014/15 budget decision costing Kyogle, Ballina and Lismore councils at least $4,700,000.

Byron and Richmond Valley council figures were not available.

"The freeze will cost Lismore City Council $300,000 to $600,000 each year," a council spokeswoman said.

"The amount is different each year and relies on a lot of variables."

The Australian Local Government Association of NSW said the freeze would cost Ballina council $1,449,923 and Kyogle council $1,519,655.

A spokesman for Mr Truss said the decision would not be reversed.

"The temporary indexation pause of the grants program is necessary to repair Labor's debt and deficit disaster," the spokesman said. "All Australians are being asked to play a part in repairing our nation's financial woes, including local government."

The spokesman said the government was providing $9.45 billion under the program to councils.

"This temporary indexation pause is more than offset by increases in other Federal Government funding to councils," he said.

Local government association president Troy Pickard said councils across the country had to make tough decisions about rates and infrastructure investment because of the decision.

"In the face of the freeze, councils are re-evaluating what services and infrastructure they can continue to provide," Cr Pickard said.

"It is ultimately our communities that will feel the pain of this freeze, so ... (the association) is renewing its call to the government to restore indexation of the grants as soon as possible."