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STOP PRESS: The Australian Government has decided to withdraw from the sale of Snowy Hydro Limited citing "immense community reaction".

Pressing ahead: Roundtable focuses on federal assistance

Meeting table

A roundtable meeting of state and territory local government ministers and ALGA has agreed to develop a case for increasing the base for federal financial assistance grants to local government. This was one of the key outcomes of the meeting on rural and remote council sustainability, convened by NSW Local Government Minister Kerry Hickey in Sydney last Friday. The meeting also discussed the chronic shortfall in local government infrastructure funding and agreed to the development of a nationally consistent approach for assessing sustainability. It also agreed that a nationally consistent approach for asset management and financial planning was needed. The outcomes of the meeting have been referred to an officials group and will be considered by the August meeting of the Local Government and Planning Ministers Council. ALGA President, Cr Paul Bell, praised the cooperative approach taken by local government ministers. "The meeting was an important one," Cr Bell said. "We are building momentum for change. Ministers clearly recognise the gravity of the problems facing councils. It's important that all spheres of government now work together to achieve lasting solutions."

Developers hoarding land

Housing construction

New statistics reveal that while Queensland councils have approved adequate land for residential development, developers were holding back an increasing percentage of lots from the market. The statistics (PDF) are drawn from land in the residential development pipeline between 2001 and 2005, published in the Queensland Residential Land and Dwelling Activity Monitor using data from the state's 40 largest councils. Developers' stock of approved residential lots that were yet to result in constructed lots increased 106% between 2001 and 2005, rising from 33,771 to 69,826 lots. In the same period, these 40 councils approved some 137,600 residential lots, while developers constructed less than 97,000 lots. In addition, a total of 13,700 lots had their approvals lapse because no development activity had taken place within that period. The President of the Local Government Association of Queensland, Cr Paul Bell, said there was justification in asking why developers were only allowing a percentage of approved lots onto the market. "Is the industry manipulating the market to maintain maximum prices and profits and the home dream of many Australians remains just that? If not, why are developers continuing to build such a huge bank of lot approvals?" LGAQ has begun to compile a 'developer performance monitor' and would be releasing the monitor's figures for the first quarter in mid-June. "We would like these figures to show an increasing supply of residential land on the market and a running-down of developers' huge stock of approved, unconstructed lots," Cr Bell said.

Transport ministers, ALGA meet in Sydney

Rail crossing

ALGA President, Cr Paul Bell, will join federal, state and territory transport ministers for today's meeting of the Transport Ministers Council (ATC) in Sydney. There are a number of issues of concern to local government on the agenda. These include developments on airport land, surface transport security, and rail level-crossing accidents. The meeting will also review progress on the accelerated land transport reform program established by the Council of Australian Governments, including road and rail regulation, getting the best out of AusLink, and - importantly - the review of urban congestion and the means by which it might be addressed through a national framework. An important initiative that will assist governments to establish future policy on road and rail freight is the current Productivity Commission inquiry into the costs and future pricing of road and rail freight infrastructure. ALGA has made a submission to the inquiry, which is now available online.

From the President

To the casual observer, last Friday's meeting of local government ministers and ALGA may have appeared little more than a gabfest on council sustainability. In reality, it marks a significant development in our long march to secure fair funding. For the first time, local government ministers were focusing on the financial plight of councils in a rational way. While not all ministers were able to attend the meeting, the outcomes - described above - will feed into the full meeting of the Local Government and Planning Minsters Council in Adelaide in August. Most importantly, the roundtable highlighted the inadequacy of the base upon which federal financial assistance grants are built. In the absence of the federal minister, Jim Lloyd, you could argue that talk of financial assistance grants and their adequacy was entirely academic, not to mention an easy option for state governments, whose own track record on local government financial assistance isn't too flash. Nevertheless, recognition of the difficulties facing local government is highly significant. We must now ensure that we move forward in a cooperative way, working together to address the issues in a fair and logical fashion. We must bring the state and Commonwealth ministers with us. We can't afford to alienate anyone. At the end of the day, decisions on federal funding for local government will be made by the federal government under its own steam. Nonetheless, sensible examination of the issues by LGPMC will ensure the issue remains a high priority as we move towards the next federal election. Useful work can be done by the ministerial council that will strengthen the case for change. This work, and the results of the PricewaterhouseCoopers study on local government financing commissioned recently by ALGA, will require positive policy responses from both the Coalition and Labor as the election draws near. Things are, I believe, moving in the right direction.

Cr Paul Bell AM
ALGA President

Councils mark Reconciliation Week

Local government across Australia marked the National Day of Healing (May 26) and National Reconciliation Week (May 27-June 3) in a variety of ways. In the City of Port Phillip in Melbourne, 200 people turned out to watch a performance of Funny Bones, a play developed and performed by two Aboriginal elders, Maria Starcevic and Judy "Jacko" Jackson, and Maori woman Mabel Enoka. Other councils hosted traditional smoking ceremonies, flag raising events, dancing and other cultural activities to allow Australians to focus on reconciliation and hear about the culture and history of Australia's Indigenous people. May 27 marks the anniversary of the 1967 referendum removing discriminatory clauses from the Constitution while June 3 marks the anniversary of the Mabo judgement. ALGA President, Cr Paul Bell, said the cause of reconciliation was as important as ever. "The Bridge Walks were an enormous indication that Australians want to work together to address Indigenous disadvantage. But the reality is that we still have a very long way to go. Councils have made a commitment to build relationships to achieve better outcomes for Indigenous people - we're in it for the long-haul."

Vic councils satisfy more

Satisfaction with Victorian councils has risen according to an annual independent community satisfaction survey published by the Victorian Government. Communities surveyed across the state rated the performance of their council 1% higher than last year's average. The survey sampled 27,000 people in 77 Victorian council areas. Some 79% of respondents rated their council excellent, good or adequate, up 1% from last year; 82% in metropolitan areas rated their council excellent, good or adequate, down 2%; and 77% of respondents in regional and rural councils rated their council excellent, good or adequate, up 1%. The report does not compare the performance of individual councils.

ALGA in infrastructure talks

ALGA President Paul Bell engaged in a wide ranging discussion in Sydney on Monday with a national ALP committee conducting an inquiry into the provision and financing of Australian infrastructure. The committee, which called for public submissions, is looking to make recommendations to form the basis of future ALP policy on key aspects of infrastructure funding and regulation. Cr Bell outlined the core issues facing local government in the provision of infrastructure, which formed the basis of a submission made to the committee by ALGA earlier this year. Cr Bell stressed the increasing pressures that have been placed on local government to fund an ever widening range of infrastructure and services, including in the area of human services. He further indicated local government's strategic goals of fair funding with other spheres of government so that the infrastructure needs of local communities can be adequately met. Other methods of funding infrastructure, such as the possible wider use of PPPs, were also canvassed.

Quote of the week

"It's little wonder rural and remote communities are doing it so tough when their share of national tax revenue has dropped by about two-thirds since 1980."
    - NSW Local Government Minister Kerry Hickey following last Friday's roundtable on council sustainability.

Regional partnerships "stockpiled"

Senate estimates committee hearings had revealed a major underspend on regional programs, the Shadow Minister for Regional Development, Simon Crean, said last week. To date, $28m (30% of allocated funds) had been underspent in the Regional Partnerships program in 2005-06. Mr Crean said the Government was "stockpiling funds for the next election". He said 70% of money to be re-allocated over the next four years would be targeted for 2007 - election year. "Labor will be writing to all area consultative committees to inform them of the outcomes of Senate Estimates and will urge them to not waste the opportunity of the Regional Partnerships program to deliver useful projects," he said.

Goulburn first with recycled water?

Residents of the NSW town of Goulburn may be the first in Australia to drink recycled water. The Goulburn Mulwaree Council was this week given a $50,000 federal grant from the Australian Water Fund to assist with its water options. After six consecutive years of poor rainfall, Goulburn (pop 22,000) is considering the construction of a system to recycle water for human consumption. Total dam capacity is now 29%, but the amount available is just 17%. The council is considering a system whereby treated waste water would be transferred by a pipe into a wetland above the main dam's catchment. The initial $50,000 will go towards a community consultation process. If the public backs the concept, then the Commonwealth could contribute up to $11m, with the NSW Government and the council providing matching funds.

International news
UK councils act on reputation

More than a third of all British councils have signed on to a campaign by the Local Government Association to enhance the sector's reputation. The campaign was launched in July last year and councils are signing up at the rate of one a day. Councils agree to undertake 12 actions to enhance their reputation at the local level, including adopting a highly visible, strongly branded council cleaning operation, deal with 'grot spots' and ensure the council brand is consistently linked to services. The LGA acknowledges the poor press local government received at the hands of the UK media and noted research which revealed only 1% of Britons spoke well of local government without prompting. This was in spite of the fact 4% of the population – some 2m people – actually work in local government.