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Costello stirs the federation pot

Pot stirring

A single level of infrastructure regulation across the economy would help Australian businesses compete against Europe, China and the United States, the Federal Treasurer Peter Costello said this week. Mr Costello last week stirred the states by arguing that the Australian Government should have greater control over the economy by taking sole responsibility for taxes. Now he says a seamless regulatory system would be of major benefit to Australian business. "The objective ought to be single national economic regulatory arrangements for key national infrastructure, particularly infrastructure which has an export importance for our country," he told reporters in the Solomon Islands. The comments come ahead of next week's meeting of the Council of Australian Governments. The Prime Minister, Mr Howard, said he would continue to argue for a single stream of regulation for ports. "I think sensible cooperative federalism is a combination of negotiation, conciliation and taking a strong stand - it's a bit of everything," Mr Howard said. But Mr Howard has also said that the idea of "state loyalties" was nowhere near as strong as it used to be. "People don't want to hear about commonwealth-state relations in the context of an argument about who wields the power. They want a debate about what is good for Australia." ALGA President, Cr Paul Bell, said that the Treasurer's comments over the past week point to an even stronger, more centralist policy from Canberra under a future Costello government. "This would have significant implications for local government, presenting both challenges and opportunities."

Poor funding forces up Vic rates

Empty pockets

Data released by the Municipal Association of Victoria this week shows council rates will increase an average 6.3% across the state as budgets face a mounting combination of cost pressures. MAV President and ALGA Vice President, Cr Geoff Lake, said a range of external costs and inadequate funding arrangements have forced many councils to make difficult decisions to meet the challenge of balancing responsible financial management with community needs and expectations. "In particular, the total proportion of financial contributions from other spheres of government has failed to keep pace with local government costs. This has severely undermined the budgetary position of councils and forced rates up. As a result, a greater proportion of councils' total revenue is now being generated from rates, increasing from an average of 51% in 2004 to 55% this year. In addition, Victorian councils are facing an annual shortfall of $310m to repair and maintain ageing infrastructure such as roads, bridges, footpaths, town halls, recreation facilities, swimming pools and drains," he said. "It is time for financial assistance grants from the Commonwealth to increase and other government funding programs to keep pace with the real cost of delivering services."

Transport strategy highlight for Roads Congress

Road at Uluru

More than 400 delegates from councils across Australia will gather in Alice Springs on Sunday for the 7th National Local Roads and Transport Congress. Delegates will consider a draft local government roads and transport strategy that will, for the first time, combine local government's broad transport agenda into a single document. The strategy will cover five key areas; local road funding and management; urban transport solutions; mobility and access for regional Australians; freight management; and the long-term financial sustainability of local government. The strategy will assist ALGA lobby for important transport commitments ahead of the 2007 federal election. The congress will also consider a range of important issues, including Roads to Recovery project management, freight corridors, National Transport Commission programs and asset management. Delegates will hear from the Federal Minister for Local Government, Territories and Roads, Jim Lloyd, and Shadow Transport Minister, Senator Kerry O'Brien. A keynote address will be given by well-known futurist and strategist, Dr Keith Suter. Congress proceedings will be posted to the ALGA website.
From the President

Peter Costello is giving every sign that he is all fuelled up and ready for take off. He has spent the past week telling all and sundry that he is a leader with a vision and agenda for Australia. The question for local government is this - what will change if the PM opts for an early and elegant departure? Even the harshest critics would concede that John Howard has been good for local government in recent years. His guiding philosophy has been simple and direct. The Australian Government will work directly with local government where that is the most appropriate way of delivering services. This approach has seen the federal-local government relationship grow gradually warmer. No big bang reform. Just a slow and gradual growth in the relationship - a relationship now worth almost $2.2bn a year to Australia's 700 councils. What will change under Costello? The Treasurer has already said he wants to "fix federalism", have a more centralised tax collection system and more Canberra control over regulation. He says the states are becoming more of a service delivery agency rather than sovereign bodies. If this is the case, Costello may well want to see greater competition between the state and local government - and even the private sector - as service delivery vehicles. He may also want to erode the regulatory role of councils as well. Both Costello and Howard are unhappy with the way the states have - as they see it - "squandered the GST". Chances are that, whoever leads the Coalition over the next 12 to 18 months, local government will continue to get a good hearing when it comes to alternative ways of doing business.

Cr Paul Bell AM
ALGA President

COAG to progress reform agenda

ALGA President, Cr Paul Bell, will represent local government at next Friday's meeting of the Council of Australian Governments. It will receive progress reports from working parties developing detailed intergovernmental action plans to implement the new, ten-year national reform agenda agreed at the last meeting of COAG in February. The reform agenda aims to improve national productivity and workforce participation over the coming decade. COAG has agreed that "payments to the states and territories and, where appropriate, to local government, would be linked to achieving agreed actions or progress measures and to demonstrable economic benefits". Other issues on the COAG agenda include a further agreement concerning human influenza pandemics, mental health reform, health workforce matters, national recognition of trade qualifications and the outcomes of the recent summit on violence and child abuse in Indigenous communities.

$250,000 funding for pilot water projects

The second round of the Community Water Grants includes funding for projects between $100,000 and $250,000 in a limited pilot scheme. Projects must meet additional criteria to those projects seeking funding of $50,000 or less. Applicants are required to ring the Community Water Grants hotline (1800 780 730) to discuss the project prior to submitting an application. Application forms will be available online from July 10 and must be completed by August 25. Further information can be requested via email cwg@deh.gov.au.

Environment grants

Councils can now keep abreast of the Australian Government's various environmental grant programs through a new 'funding opportunities' section of the ALGA website. The section provides details, dates and links for environmental programs such as community water grants, greenhouse abatement grants, recreational fishing grants and volunteer small equipment grants.

ALGA ageing project on award short-list

ALGA's local government and ageing project has been short-listed for a prestigious international award - the Carl Bertelsmann Prize. The prize will this year be awarded to a project that focuses on the engagement of older people in the economy and society. Representatives of the Carl Bertelsmann Foundation visited ALGA last month to assess the project. It will also feature in a television documentary being prepared by the Foundation. ALGA's policy officer running the ageing project, Alley Peck, returned to the secretariat last week after travelling on a Churchill Fellowship to study ageing and local government issues in Japan, Canada and Europe. Ms Peck was also invited to address the International Federation on Ageing's 8th Global Conference in Copenhagen while overseas.

Quote of the week

"Whether it is health or whether it is education, every area is now bedevilled by the problem of federalism. It is because our constitutional model was good for 1901 but it needs improvement for 2101."
    - Peter Costello on Channel 9's Sunday Program
Regional Development Council

Regional development ministers and ALGA Vice President, Bill Mitchell, will meet in Alice Springs next week for the third meeting of the Regional Development Council. It is expected to discuss an investment plan to globally benchmark and promote Australia's regions, and the need for an agreed set of regional performance indicators as a means of measuring and further developing policy actions. The council will also receive a range of briefings and reports on on-going issues such as regional skills development and shortages, Indigenous participation in the resource sector and regional manufacturing.

Information resource for coastal councils

The Coastal Cooperative Research Centre has released a new website for local government, providing information to assist coastal councils manage natural resources. The site contains fact sheets and capability 'matrices' that focus on issues such as foreshore and estuary management. The site also highlights practical tools and technologies, such as modelling and monitoring, to manage these natural resources.

Animal rescue trailers an Aussie first

Two trailers dedicated to animal recovery and disease control (ARK) were launched this week by the Federal Local Government Minister Jim Lloyd and ACT Minister for Territory and Municipal Services, John Hargraves. The ARK trailers are a unique initiative with no known comparable resource available either in Australia or overseas. The ARK trailers - developed by Domestic Animal Services in the ACT Department of Territory and Municipal Services - provide a command and control point for the re-location and/or control of animals affected by a major event, such as bushfire or disease outbreak. The trailers were developed with funding from Emergency Management Australia's local grants scheme. Drew McLean drew.mcLean@act.gov.au of Domestic Animal Services is happy to provide further details to councils wanting to develop cost-effective methods of responding to animal emergencies in the field.

Palmerston joins red tape crusade

The Palmerston City Council in the Northern Territory this week unveiled a new IT system that will make it easier for business to apply for council permits. Palmerston joins the increasing number of councils that are streamlining administration through the use of IT. Speaking at the launch of a demonstration project in Palmerston this week, Federal Small Business Minister Fran Bailey said the new technology, which has automated a number of the Palmerston City Council's application forms, would deliver significant benefits to the local business community. The project is being supported through the Australian Government's Regulation Reduction Incentive Fund - a program estimated to be saving Australian small businesses $450m over the next two years by assisting councils lower regulatory costs.

Coalition of Cities Against Racism

Local government representatives from the Asia-Pacific region will meet in Bangkok on August 3-4 to ratify a 10-point plan to counter racism and discrimination. Australian councils have been encouraged to attend. The meeting is part of an international movement to involve cities in a common struggle against racism and discrimination. During the first phase of this initiative, regional coalitions are being formed in Africa, North America, Latin America and the Caribbean, Arab states, Europe and Asia and the Pacific. Each region is developing its own ten-point plan. Signatory cities undertake to integrate within their strategies and action plans the ten-point commitment, and to commit the human, financial and material resources required for its effective implementation.

State of the Regions survey

The ALGA/National Economics State of the Regions report is an invaluable source of data, analysis and commentary on a range of economic and social issues of concern to all councils, from city centres to remote communities. This year's report - to be released in November - will look at local government finances as an economic driver in regions. It will also look at the role of local government infrastructure in supporting industry innovation. To assist National Economics prepare the report, a short survey has been designed to gain a contemporary understanding of local government finance and revenue opportunities. Survey responses will remain confidential. Councils are urged to participate in this quick and simple survey before August 9.

Farewell from the editor

After nearly four years as Director of Public Affairs with ALGA, I'm moving on to other pastures. This, then, is my 175th and final edition of ALGA News. Thank you to all at ALGA, particularly the President, Cr Paul Bell, Chief Executive Adrian Beresford-Wylie and his predecessor, Ian Chalmers, and Research and Policy Director, John Pritchard. Thank you also to all in local government who have supported ALGA News over the past few years. For all ALGA News and advertising inquiries, please contact Mark Dale at ALGA mark.dale@alga.asn.au.
Rohan Greenland

International news  
Improvement Network
Improvement Network

Britain's local government 'Improvement Network' has re-vamped its website to provide a 'live-site' regularly updated to respond to emerging issues. The site encourages self-improvement in public services and contains case studies and examples of notable practice to guide councils through each of these areas. In addition to the current content, themes such as transformational government and efficiency will be available over the coming months, reflecting current priorities in local government. The Improvement Network is owned by four UK local government agencies, including the Audit Commission, the Improvement and Development Agency (IDeA), the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Leadership Centre for Local Government. While the website is primarily for British councils, there is much that of generic interest to local government.

2006 National Local Roads and Transport Congress
State of the Regions report 2005-06