East Gippsland Shire Council will take a new advocacy proposal to the Municipal Association of Victoria (MAV) State Council in October, calling for the investigation of a national Sovereign Wealth Fund funded by a defined share of Australia's natural resource revenues.
The motion seeks support from councils across Victoria for advocacy to the Victorian and Commonwealth governments to recognise Australia's finite natural resources as public assets owned by current and future generations and to explore a Sovereign Wealth Fund capitalised through royalties and taxation streams generated from resource extraction.
Mayor Cr Jodie Ashworth said the proposal was about ensuring communities received a lasting benefit from the wealth generated by Australia's resources.
"Regional communities play a vital role in supporting Australia's economy through agriculture, energy production, transport corridors and resource-related industries, yet too often they are left carrying the long-term impacts without receiving a fair share of the benefits," Cr Ashworth said.
A Sovereign Wealth Fund model, based on principles of returning royalties to regions and ensuring community benefit from resources and energy, would reduce reliance on short-term, competitive grants and support planned investment in roads, bridges, drainage, community facilities, housing-enabling infrastructure, climate adaptation and disaster resilience.
"A Sovereign Wealth Fund would provide a practical way to create a lasting legacy for future generations, while helping communities manage the infrastructure, environmental and economic impacts associated with growth and resource development,” Cr Ashworth said.
The motion highlights the increasing financial pressures facing councils, including rising construction and maintenance costs, growing infrastructure demands and increasing responsibilities transferred from other levels of government.
Cr Ashworth said the proposal was not about replacing existing government funding programs.
"This would be additional to current funding arrangements. It is about creating a long-term investment vehicle that delivers ongoing benefits to communities and helps reduce reliance on short-term, competitive grant programs."
"Communities that host extractive industries, renewable energy projects and major transport corridors often experience lasting impacts on local roads, land use, agriculture and community infrastructure. It is only fair that a share of the wealth generated is reinvested into those regions."
The motion draws on successful international examples, including Norway's Government Pension Fund Global, which has grown into the world's largest sovereign wealth fund by investing revenues generated from oil and gas resources for the long-term benefit of its citizens.
Cr Ashworth said the proposal aligned strongly with the need for intergenerational planning.
"Councils are responsible for assets and infrastructure that serve communities for decades. We need funding models that look beyond annual budget cycles and election terms and support the long-term prosperity and resilience of regional communities."