Local Councils across the country have joined forces with unions representing the local government sector to call on the Federal Parliament to increase the funding for local government.

A letter, signed by associations representing more than 500 councils nationwide, was endorsed and sent to the Speaker of the Parliament as well as every MP and Senator

This joint call to increase Commonwealth Financial Assistance Grants comes as a growing number of regional councils in particular face severe financial pressures that threaten basic services.

Michael McCormack, Federal Member for the Riverina, said if this direct funding was to regional councils which need it the most, it would be all well and good, but it has to be in conjunction with the states.

Federal Assistance Grants have fallen from one per cent of Commonwealth taxation revenue to barely half that over 30 years, United Services Union general secretary Graeme Kelly said.

However, Mr McCormack has said this has to be in conjunction with a fair system whereby they don't give money unnecessarily to metropolitan councils which get so much money from parking fees and parking fines that all they would end up spending their one percent of Commonwealth receipts o would be "to send Greens councillors on global trotting climate conferences".

"You see some of the wastage in these metropolitan councils," he said.

Mr McCormack said if local government at a regional level could come up with a model and a means to make sure the Commonwealth wasn't unnecessarily giving money to metropolitan councils and preserve regional councils which are "operating on the smell of an oily rag", then he would be all for listening to it.

"I'm not going to be blindsided by councils demanding one percent of national receipts for every council across Australia, and that's what they are doing," he said.

The letter, sent to the the members of parliament said councils provide vital services and infrastructure that our national economy and productivity rely upon.

"The success of our Australian system of government depends upon our councils succeeding at grassroots level," the letter said,

"But this system is in jeopardy.

"Long term planning and delivery requires long term financial security and certainty.

"Councils have limited options to raise revenue and in many cases are highly reliant on untied financial assistance grants from the Commonwealth."

Mr McCormack said he is all for giving regional councils more money, but it needs to be clear, direct and in an organised way so they didn't need to have to go cap in hand all the time to IPART to seek rate variations which some times their ratepayers would question.

He also said at the end of the day local councils are the product are the product of state governments and they have to do more.