A proposal has been made that money for some of New South Wales’ wealthier councils should be re-distributed to those less fortunate.

Proponents say local governments such as the City of Sydney are sitting on “rivers of gold” from parking revenue and other sources, while regional councils are left threadbare.

The Member for Murray-Darling, John Williams, has told NSW parliament that remote local governments can barely cover basic services with their low rate-bases, and that financial assistance grants from city councils should be reallocated to local governments in rural and regional areas.

Mr Williams said the City of Sydney gets “rivers of gold” from parking metres, which have left it with nearly a billion dollars worth of reserves.

He said the interest alone could prop up entire councils.

Local Government Minister and fellow Nationals MP Paul Toole said the idea had been raised before, and that it was important all regions get adequate funding.

But the New South Wales Local Government Association says the whole local government sector should see a funding boost, not just small internal re-shuffling.