In a welcome move for the local government sector, the NSW Government has announced that from July next year, it will take over ownership and responsibility of the Rural Fire Service’s (RFS) mobile assets – commonly referred to as the “Red Fleet”.
President of Local Government NSW, Mayor Darcy Byrne said the move would come as a great relief to local councils across NSW.
“For the last 30 years, legislation has said that these assets are owned by councils.
“Yet councils had no say in the acquisition, usage and disposal of these assets; these were all decisions of the Rural Fire Service,” Mayor Byrne said.
Despite this, councils have been required to record these assets in their financial statements and absorb the depreciation expense for these assets, as well as the costs of inspecting and recording them in their accounts.
Mayor Byrne said that once the transfer takes place next year, councils will no longer carry this impost.
He said the reform will be particularly felt in smaller rural and regional areas where the vesting of Red Fleet assets has had a huge impact as these communities often have a proportionally larger RFS presence.
“These councils were carrying a heavy financial burden by being forced to record them on their books,” Mayor Byrne said.
Cobar Shire Council Mayor Jarrod Marsden said the decision was “welcome and sensible”.
“Having to maintain and depreciate assets Council didn’t own or control was never a great way of managing this fleet,” Mayor Marsden told The Cobar Weekly.
“It also saves Cobar ratepayers around $50k as the money previously provided for the Red Fleet did not actually meet the maintenance requirements and we had been forced to absorb the shortfall.”
Member for Barwon, Roy Butler, has also welcomed the NSW Government’s decision to transfer ownership of the Rural Fire Service “Red Fleet” from local councils to the State, while also investing in the fleet’s upgrade.
Mr Butler said the decision to shift more than 6,000 RFS vehicles off council balance sheets is a reform he has been advocating for over many years.
“It’s not fair that councils have been financially responsible for depreciating assets that they don’t control,” Mr Butler said.
“The simple fact is that the RFS operates these vehicles, and it makes sense that the State takes ownership.
“This change finally aligns reality with accountability.”
Mr Butler said removing the Red Fleet from council balance sheets will provide much-needed financial relief to regional and rural councils.
“This is a big win for councils in the bush that are already doing it tough,” he said.
“It frees up council balance sheets, reduces unnecessary administrative pressure, and allows councils to focus on delivering the local services our communities rely on.”
