Country councils say the question of who should pay for Rural Fire Service plant and equipment is becoming more urgent, preventing them from allocating funds to essential local infrastructure and services and needs to be resolved.

The Country Mayors Association of NSW (CMA) says progress is finally being made on the long-running Red Fleet issue following high-level talks with the State Government, raising cautious optimism among regional and rural councils.

CMA Chairperson, Temora Shire Mayor Rick Firman OAM, and CMA Board Member and NSW JO Chairs Network Chairperson, Singleton Mayor Sue Moore, met this week with NSW Emergency Services Minister Jihad Dib to discuss the ongoing impact of Rural Fire Service assets being recorded on council balance sheets despite not being owned or controlled by local government.

“We have lobbied for the Red Fleet issue to be resolved for years now,” Mayor Firman said.

“Our CMA members and Board were concerned that the asset audit may have been a stalling tactic that would leave the matter adrift in a bureaucratic never-never.

“However, in response to our advocacy, Minister Dib has given the CMA assurances that it is to be completed within six months and that councils will not be paying for it.”

The Red Fleet issue has been a long-running concern for councils across New South Wales, with local governments required to carry Rural Fire Service vehicles and equipment on their balance sheets despite having no operational control.

The Country Mayors Association of NSW has repeatedly argued the arrangement unfairly distorts council finances, while Member for Barwon, Roy Butler, has previously raised broader concerns about cost-shifting and the financial pressure placed on rural councils.

Nationals MP Jamie Chaffey has also acknowledged the need for clearer and fairer arrangements between state and local government.

Chairperson of the Country Mayors Association of NSW, Rick Firman, said the organisation is confident the 'red fleet' issue will soon be settled.

The issue stems from provisions in the Rural Fires Act 1997, which require firefighting equipment purchased through the Fire Fighting Fund to vest with local councils, even though the assets are operated and managed by the NSW Rural Fire Service.

The dispute intensified in 2023 after several councils received qualified audit opinions from the NSW Auditor-General when they exercised their right to exclude depreciation on RFS assets from their books - an option that was permitted under the Local Government Code of Accounting Practice at the time.

However, Local Government NSW later revealed the Code had been amended shortly before Christmas 2023, removing that option.

LGNSW said councils were not notified of the change, despite the NSW Parliament’s Public Accounts Committee already undertaking an inquiry into responsibility for the Red Fleet.

At the time, LGNSW President Darriea Turley said the amendment undermined the inquiry process, arguing councils and communities clearly understood the RFS fleet to be a State responsibility rather than a local government asset.

Mayor Firman said CMA welcomed confirmation it would be included in a ministerial working group tasked with implementing the Government’s response to the inquiry.

“Minister Dib also agreed that the CMA should be part of his working group to assist in implementing the Government response to the inquiry,” he said.

“Knowing that the NSW Government has deadlines and timeframes in mind for this journey has restored our faith in it.”

The CMA says it remains confident the Red Fleet issue can be resolved in a way that delivers fair outcomes for councils, the State Government and regional communities.