25 January 2008
Contents
President's report
2006-07 has been a watershed year for local government. Significant progress has been made on ALGA’s three principal goals – Fair Funding, Fair Treatment and Formal Recognition.
The May Budget provided a bonanza for local road funding. Local government welcomed the long-term commitments to road funding through the $1750 million for the Roads to Recovery program over the 5-year period of Auslink 2 and the $300 million for the Strategic Regional Program. The Strategic Regional Program was over-subscribed by more than a billion dollars and this additional funding goes some way to meeting this enormous unmet demand for economic infrastructure in regional areas. We were also delighted with the renewal of the Black Spot program which was due to expire in July 2008 and was extended to 2014. The program will continue to save lives and prevent thousands of serious crashes.
The 2007 National Local Roads and Transport Congress in Newcastle built on the work done at the Alice Springs Congress, by developing the themes of the National Road and Transport Strategy and outlining the future directions of transport and the challenges particularly in terms of public transport, urban congestion, freight management, the needs of an ageing population and reducing greenhouse gas emissions. We were fortunate to have the following speakers, which also gave us an opportunity to progress our agenda: The Minister for Transport and Regional Services, Mark Vaile; the Minister for Local Government, Territories and Roads, Jim Lloyd; the Shadow Minister for Transport and Roads, Martin Ferguson; and the Shadow Minister for Local Government, Senator Kate Lundy.
The National General Assembly in November 2006 at the National Convention Centre in Canberra was highly successful and provided a forum for local government to ‘Push the Agenda’ and shape the issues which have played out in the following months. The National Economics State of the Regions report focused on the housing affordability crisis and the need for fast, cost-effective broadband coverage to connect regions to the internet superhighway. The Government and the Opposition were well-represented at the Assembly with an impressive line-up of speakers including Grahame Morris, the Chairman of Federal Government Services with PricewaterhouseCoopers (PwC), and Cr Basil Morrison, the President of Local Government New Zealand. The Shadow Minister for Regional Development, Simon Crean, Shadow Local Government Minister Senator Kim Carr, and Deputy Labor Leader Jenny Macklin represented the Labor Party and the Government was represented by the Minister for Transport and Regional Services Mark Vaile, the Minister for Ageing Senator Santo Santoro and Local Government Minister Jim Lloyd.
The other important issue which dominated the political agenda was constitutional recognition for local government. In September 2006 both Houses of Parliament passed a motion formally recognizing local government’s role in Australian federalism. This is a significant milestone for local government and prepares the way for Constitutional recognition which was highlighted by NT and Qld Government moves to reform local government.
There are many challenges ahead – such as the continuing need for community and large-scale infrastructure spending. Communities urgently need upgrading of existing infrastructure such as swimming pools, ovals, walking tracks and libraries, and with a $14.5 billion backlog in infrastructure spending by local government, federal funding is needed as a matter of high priority. The other pressing matter is the broader issue of local government funding. The PricewaterhouseCoopers report into local government financial sustainability commissioned by ALGA and the State and Territory Associations and made public in December 2006 recommended revising the escalation methodology for Financial Assistance Grants which have steadily declined from 1.01% in 1996 to its current level of 0.76%. This is an issue of fairness. Local government does not have a sufficient direct funding stream and will continue to push for at least 1% of direct taxation revenue. The signing of the Intergovernmental Agreement on Cost Shifting (IGA) in 2005-06 has proved to be of great assistance to local government. Cost shifting was estimated to cost local government between $500 million and $1.1 billion a year. However, we must be vigilant to ensure the agreement continues to work to maximum effect.
The Australian Local Government Association, through its membership of 14 Ministerial Councils and the Council of Australian Governments (CoAG), has achieved much over the past financial year. Local government concerns have been at the forefront of national debate in this election year. We have argued passionately, powerfully and persuasively for reform of the Constitution, the taxation system, and infrastructure spending so that local government, the sphere of government closest to the people, is free to do what it does best – serve the needs of local communities throughout Australia.
- Cr Paul Bell AM
- President
- Australian Local Government Association
Chief Executive's report
2006-07 marked my first full year as Chief Executive of the Australian Local Government Association. It was a year of challenges as the Association focused on its strategic directions in shaping the agenda for the election year.
The 2007 Federal Budget prepared the way with a very positive outcome for local government, with an additional $2.7 billion in funding announced for local government related programs.
Such announcements, however, do not happen without substantial lobbying and advocacy. Our 2007 Budget Document, the finalization of our Roads and Transport Strategy and the launch in December 2006 of the PricewaterhouseCoopers Report into Local Government Financial Sustainability provided the facts and figures to underpin our advocacy.
During the year, ALGA President Cr Paul Bell undertook a very active program of political representations at ministerial and shadow ministerial levels including meetings with:
- The Hon Jim Lloyd, Minister for Local Government, Territories and Roads
- Senator Kate Lundy, Shadow Minister for Local Government
- The Hon, Bob McMullan, Shadow Minister for Federal/State Relations
- The Hon Martin Ferguson, Shadow Minister for Transport, Roads and Tourism
- The Office of Mr Anthony Albanese, Shadow Minister for Water and Infrastructure.
The ALGA Secretariat reinforced these representations through meetings with the Prime Minister’s Office, and the Offices of the Treasurer, Minister for Finance, Deputy Prime Minister and Minister for Local Government.
The Local Community Infrastructure Renewals Fund (LCIRF), as recommended by the PricewaterhouseCoopers Report, was not addressed in the 2007 Budget and neither was a call for additional funding to support asset management. The LCIRF is an important initiative which local government pursued in 2007 and will continue to press for in 2008. To assist in our advocacy for the Fund, the Secretariat launched the Community Infrastructure Ideas Register on the ALGA website on 30 March 2007, The Ideas Register is gathering suggestions from councils on projects which could be considered for funding under through a LCIRF and so far more than 1100 ideas have been posted on the Register from councils throughout Australia. About a third are for recreational projects.
Local government is facing an infrastructure backlog of $14.5 billion nationally. A LCIRF would focus on renewing and replacing community infrastructure such as community centres and public halls, swimming pools, walking tracks, ovals and playing fields, libraries and tourism information centres. Investing in upgrading community infrastructure will improve the health and well-being of communities and, in many cases, act as a catalyst in the rejuvenation of local economies.
The issue of local government funding was discussed at the meeting of the Council of Australian Governments (COAG) on 13 April 2007. COAG considered a paper prepared by ALGA on the issue and agreed to consider the matter further following a report of the Productivity Commission into Local Government’s Own-Source Revenue Raising due by April 2008. The Secretariat participated in a detailed discussion with the Productivity Commission on the study.
Another highlight of the year was the launch of the 2006 State of the Regions Report at the Regional Forum during our National General Assembly in Canberra in November 2006. The report prepared by National Economics and ALGA highlighted the issue of access to affordable high-speed broadband in regional areas. It linked the lack of connectivity in parts of regional Australia to an inability to attract new industry and well-trained productive workers. It did however offer hope. The Report says Australia’s local government areas could resemble Silicon Valley, given a boost to regional innovation, and provides light-house case studies such as Bendigo Community Telco.
A milestone was achieved with the passing through both Houses of Parliament in September 2006 of the Parliamentary Resolution on Local Government which recognized the importance of local government in Australia’s federal system. This is the first step on the road to Constitutional recognition and it was significant that it received bipartisan support.
The ALGA Secretariat continues to support ALGA’s President and Board in achieving the Association’s goals. We are fortunate to have a team of talented people. As with most organisations, there is turn-over of staff and this year was no exception. We were particularly sad to see Katie Whitehead off to pursue a career in the corporate sector, after pulling together 5 General Assemblies. Clare Hogan has taken on the role of Director, National Events. Our Assistant Director Environment Policy, Angela Shepherd, left to take up a role at Cobar Council and to be near her family, and she too has been sorely missed.
We have also attracted a number of quality recruits and we are delighted to have a new IT Manager on-board with Zaman Khaliq-ul who joined us from Melbourne and Michael New, our Manager Finance and Compliance who joined the organization in April 2007 following the departure of Lace Wang who took up a position with the Federal Government.
Our policy team, which includes a number of talented individuals with previous experience in local government and other spheres of government continues to be led by our Executive Director, Policy and Research, John Pritchard. I would also like to acknowledge the invaluable support provided by our administrative team of Karen Miller, Gabriella Sergi and Laura Ford.
‘ALGA News’ produced by our Director of Public Affairs and Government Relations, Amanda Lynch, continues to inform our stakeholders about local government issues and provides a platform for councils and State and Territory Local Government Associations to raise awareness about their initiatives and the challenges they face. It is also an effective advocacy tool in dealing with the Commonwealth Government and communicating our policy agenda to all spheres of government.
The Association remains in a sound financial position as illustrated by our Statement of Accounts and ALGA’s 2006 National General Assembly in Canberra and our 2007 Local Roads and Transport Congress in Newcastle were both successful and well-regarded events.
The main challenges ahead in the next 12 months include our 2008 National Local Roads and Transport Congress in Shepparton on June 15-17 , the Constitutional Summit in November 2008 which will provide the opportunity for local government to agree on its preferred way forward for constitutional recognition of local government, and our continued efforts to press local government’s agenda with the new Federal Government and in inter-governmental fora, including COAG and Ministerial Councils.
I look forward to these challenges and believe we can make significant progress in achieving our objectives with the continued assistance of State and Territory Local Government Associations, local councils and the communities we serve.
- Adrian Beresford-Wylie
- Chief Executive
Company directors
The names and particulars of the directors of the Company in office at any time during or since the end of the financial year are:
President: Cr Paul BELL AM
President - Local Government Association of Queensland
(Director since 5 September 2000)
Vice President: Cr Bill MITCHELL
President - Western Australia Local Government Association
(Director since 6 November 2002)
Vice President: Cr Colin Sullivan
President - The Shires Association of NSW
(Appointed 14 July 2006)
Directors
Cr Bob ABBOT
Vice President - Local Government Association of Queensland
(Director since 21 January 2005)
Mayor Joy Baluch
Past President Local Government Association of South Australia
(Director since 17 March 2006)
Cr Ann Bennison
Vice President Local Government Association of Queensland
(Director since 17 May 2004)
Mr Simon Corbell
Member ACT Legislative Assembly
(Director since 28 November 2001)
Cr Jenny Dale
Councillor - Municipal Association of Victoria
(Resigned 1 May 2007)
Mr John Hargreaves
Member ACT Legislative Assembly
(Director since 4 November 2004)
Cr Robert Legge
Vice President Local Government Association of Tasmania
(Resigned 18 September 2006)
Cr Lyn Mason
President Local Government Association of Tasmania
(Resigned 15 August 2006)
Cr Genia McCaffery
President Local Government Association of New South Wales
(Director since 2 June 2006)
Alderman Kerry Moir
Mayor Local Government Association of the Northern Territory
(Director since 31 May 2005)
Cr Pauline O'Connor
Deputy President Western Australian Local Government Association
(Director since 23 August 2005)
Cr John Rich
President Local Government Association of South Australia
(Director since 12 October 2005)
Cr Phyllis Miller
Past President Shires Association of New South Wales
(Director since 10 November 2004: resigned 14 July 2006)
Cr Ray Woolridge
Vice President Local Government Association of the Northern Territory
(Director since 14 October 2004)
Cr Darryl Argall
Rural Deputy President Municipal Association of Victoria
(Appointed 1 May 2007)
Mayor Barry Easther
Vice President Local Government Association of Tasmania
(Appointed 18 September 2006)
Mayor Michael Gaffney
President Local Government Association of Tasmania
(Appointed 15 August 2006)
Cr Richard Gross
President Municipal Association of Victoria
(Appointed 13 November 2006)
Cr Geoff Lake
Past President Municipal Association of Victoria
(Resigned 18 October 2006)
Alternate Directors
Mr Hamish McNulty
ACT Government
(Alternate Director for Mr Simon Corbell)
Mr Mike Zissler
ACT Government
(Alternate Director for Mr John Hargreaves)
Statement of financial position
Balance sheet as at 30 June 2007
| Current assets | 2007 $ | 2006 $ |
|---|---|---|
| Total current assets | 2,222,851 | 2,683,625 |
| Cash and cash equivalents | 2,009,695 | 2,433,005 |
| Trade and other receivables | 122,270 | 144,981 |
| Other assets | 90,886 | 105,639 |
| Non-current assets | 2007 $ | 2006 $ |
|---|---|---|
| Total non-current assets | 1,720,973 | 1,326,083 |
| Property, plant and equipment | 1,720,973 | 1,326,083 |
| Total assets | 3,943,824 | 4,009,708 |
| Current liabilities | 2007 $ | 2006 $ |
|---|---|---|
| Total current liabilities | 1,013,642 | 1,669,379 |
| Payables | 897,826 | 1,538,446 |
| Provisions | 115,816 | 130,933 |
| Total liabilities | 1,013,642 | 1,669,379 |
| Net assets | 2,930,182 | 2,340,329 |
| Equity | 2007 $ | 2006 $ |
|---|---|---|
| Total equity | 2,930,182 | 2,340,329 |
| Retained earnings | 2,476,159 | 2,340,329 |
| Reserves | 454,023 | - |