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Report finds more than half of WA councils unsustainable

Breaking chain

An independent report commissioned by the West Australian Local Government Association has found that more than half of WA's councils are financially unsustainable from their current own source revenue. The preliminary findings of the Systemic Sustainability Study into Local Government were released on 5 August at the Annual Local Government Week Convention.

The report finds that 83 of Western Australia's 144 councils require revenue increases of more than 10% to eliminate operating deficits and that the total infrastructure backlog is in the order of $1.75b. The Report's findings are consistent with other recent sustainability inquiries into local government undertaken in South Australia and New South Wales.

The Western Australian Local Government Association will conduct a three month consultation process in which councils, the community and other parties can respond to the Report. At the end of the consultation period, a set of comprehensive recommendations will be developed on the future direction of local government in Western Australia

Financial sustainability - Ministers get the message

Overloaded

Federal and State local government ministers at their meeting in Adelaide on 4 August heard first hand from ALGA President Cr Paul Bell about the financial plight of local councils and the need for a national commitment from all spheres of government to address the issue. "The issue of financial sustainability is affecting councils across the nation", Cr Bell said. "The problem has become critical in recent years as councils face increasing demands for a wider range of services while at the same time facing a massive backlog in infrastructure maintenance. Councils do not have the resources to replace infrastructure and meet the service demands of the community - they don't have the revenue raising capacity and they don't have the financial reserves." Cr Bell told Ministers that ALGA had put the issue of financial sustainability on the agenda of the next meeting of the Council of Australian Governments. Cr Bell also told Ministers that ALGA had written to the Australian Government seeking restoration of $171m in Financial Assistance Grants which local government had missed out on as a result of a decision by Treasurer Peter Costello in 1997 to impose a one off reduction in escalation of the grants. "As part of ALGA's campaign for fair federal funding for local government through setting financial assistance grants at a level equal to 1% of Australia Government taxation revenue we are also seeking the restoration of the missing grants".

As part of their response to the funding issue, federal and state ministers agreed to pursue the development of nationally consistent approaches to the financial sustainability, asset management and financial reporting of local government.

COAG Reform Agenda on track

Road sign

At their meeting in Adelaide last week, state and federal local government and planning ministers approved work by bureaucrats on a variety of areas to ensure that the Local Government and Planning Minister's Council met its requirements under the broad Council of Australian Governments (COAG) National Reform Agenda. The Ministers are responsible particularly for work on strategic climate change initiatives focusing on energy efficient land use practices, development assessment reform (including the use of electronic lodgment) and building regulation reform. Reform initiatives need to be identified and reported to COAG by the end of 2006. The work of the Local Government and Planning Ministers is just part of COAG's National Reform Agenda which covers reform in the Human Capital and Competition and Regulation areas. Work is now proceeding across the agenda to identify initiatives which COAG can consider and tick off at its next meeting, expected to be in February next year.

From the President

The release last Saturday of the Western Australian Local Government Association's interim report on sustainability of local government has confirmed that the financial crisis facing local government is a national issue which needs a coordinated national response. The report's finding that more than 80 WA councils are unsustainable underlines the fact that local government cannot continue under the current system of funding and that action is needed now. The infrastructure backlog identified in WA is in the order of $1.75 billion, or 14% of the total value of council infrastructure. This echoes the earlier findings in South Australia (where 26 out of 68 councils were financially unviable) and New South Wales (where the infrastructure backlog is put at $6 billion).

The need for a nationally coordinated approach to address local government's funding issues was the major message I put to local government ministers at their meeting last Friday, and its one I will continue to put until we have achieved some reform of local government funding. This is perhaps the central issue facing local government today. ALGA's Triple F campaign - Fair Treatment, Fair Funding and Formal Recognition - has delivered real outcomes. The Intergovernmental Agreement on Cost Shifting was signed on 12 April and I have been advised by Local Government Minister Jim Lloyd that the Commonwealth Parliamentary Resolution recognizing local government will be introduced into Parliament shortly. Fair Funding, however, is the area on which I will be focusing over the coming months. The work on local government finance that ALGA commissioned from PricewaterhouseCoopers is proceeding and will be completed by the time of our National General Assembly in November. I expect that work to strengthen our case for further funding and I will be using it in support of our arguments when the Council of Australian Governments(COAG) considers the issue of local government funding early next year. The challenge we face in getting this issue addressed is not an easy on, but as the WA report shows, doing nothing is not an option.

Cr Paul Bell AM
ALGA President

New senior staff in DOTARS

Recent weeks have seen a shakeup in the senior staff responsible for local government in DOTARS with the appointment of John Angley as the Executive Director of the Territories and Local Government Division. He was formerly with the Department of Finance. Daniel Owen will be the new General Manager of Local Government. Mr Owen previously headed the area within the Department which dealt with Regional and Indigenous Policy.

World Mayor 2006: The nominees

Fifty mayors from all continents have been nominated for this year's World Mayor Award. Among them are some of the big names in local government such as the mayors of New York, Tokyo, Shanghai, Melbourne and Amsterdam. Europe is represented by 16 mayors, while 10 mayors come from North America, six from South America, 12 from Asia, four from Africa and two from Australia and New Zealand. The World Mayor project, organised by City Mayors, aims to raise the profile of mayors worldwide, as well as to honour those who have served their communities well and who have contributed towards the wellbeing of cities, nationally and internationally. In the final round of World Mayor 2006, which is now in progress and lasts until the end of October, citizens from across the world are invited to choose from the list of 50 nominees. They may vote for one mayor from each of the world regions and are asked to supplement their vote with a statement explaining why their choice of mayor deserved to win the 2006 Award. When deciding the winner, well-argued supporting statements are as important as the number of actual votes. The winner will be announced on 6 December.

Research on emergency risk management

ALGA is about to begin a series of in-depth telephone interviews with local council officers throughout Australia, whose work determines their councils' approach to emergency risk management. The research will be used to recommend communication strategies to engage relevant council officers in a regular, ongoing two-way information exchange about risk management, disaster mitigation and recovery planning. The research will draw on the results of the recent National Emergency Management Survey that was completed by 42% of all Australian local council's and has the potential to benefit local council's and a range of government agencies, by creating a more comprehensive knowledge-base about how the work of local council officers around Australia impacts on an integrated approach to emergency risk management. For more information about the project contact Sharyn Csanki - sharyn.csanki@alga.asn.au - 02 6122 9420

Time running out for senior nominations

Time is running out to get nominations in for the 2007 Senior Australian of the Year Award. The Minister for Ageing, Senator Santo Santoro, said the August 28 deadline was fast approaching and he urged people not to miss the chance to nominate someone for the honour. "The Senior Australian of the Year Award celebrates the lives and achievements of ordinary Australians doing extraordinary things to help build a better Australia," Senator Santoro said. Nomination forms for the 2007 Senior Australian of the Year Award are available from all Commonwealth Bank branches, on-line, or by phoning 1300 655 193

NGA06: Pushing the Agenda

Registrations are now open for this year's National General Assembly Pushing the Agenda. The General Assembly will focus on progress of the Triple F campaign - launched at NGA 2005 - Fair federal funding, Fair treatment, Formal recognition. It will build on three significant milestones for local government achieved so far this year - securing an intergovernmental agreement, or IGA, on cost shifting; the $300m boost to the Roads to Recovery program in the Federal Budget, coming on top of an additional $100 million for the AusLink strategic regional program announced by the Australian Government at NGA 2005; and the PricewaterhouseCoopers major study on local government financing commissioned by ALGA. Work has also progressed on a motion to recognise local government, expected to be presented to Parliament in this August sitting. In addition, the ALGA President, Cr Paul Bell, will launch the National Local Roads and Transport Strategy - the subject of this year's National Local Roads and Transport Congress held in Alice Springs. This year's NGA will Push the Agenda as local government prepares for the next federal election in 2007 - an Assembly not to be missed!

Quote of the week

Sometimes I think the surest sign that intelligent life exists elsewhere in the universe is that none of it has tried to contact us.
    - Calvin and Hobbes
Motions for Debate - now open

Councils are now invited to submit Notices of Motion for the 2006 National General Assembly of Local Government. Motions are to be received by ALGA no later than Friday 8 September. In order to address delegates' strong concerns regarding motions for debate, a General Assembly Review Committee has been set up by the ALGA Board. Two significant changes for this year's Assembly are the return of full plenary debate and strict assessment of all motions submitted against the criteria of national significance. Issues not included for debate in the Business Papers are welcomed in Open House - a networking space specifically designed for delegates to discuss issues not on the main agenda - why not make a booking in advance of the National General Assembly? This is your opportunity to discuss what's happening on your home patch.

Councils on show!

We know councils across Australia constantly utilise skills and ingenuity to solve vital issues. Now via the National General Assembly, we want you to tell the rest of local government about your problem and your unique solution. As a brand new initiative to highlight the great innovation in local government all over Australia, the ALGA Board invites councils to submit multi-media presentations which showcase innovative solutions to the challenges faced by all councils. A council may have installed a desalination plant to combat the drought, or be introducing new forms of housing to cope with population change. Alternatively, a simple solution to an occupational safety issue could be highlighted. We want to facilitate the opportunity for all councils to learn from each other. We want entries from all councils, large and small, rural and urban. Successful entries will be shown throughout the National General Assembly. To ensure the maximum number of councils have the opportunity to showcase - presentations must be of no more than 15 minutes duration and they must stand alone both in audio and visuals. Please note: this is not an opportunity for individuals to give a presentation. Please post your presentations on CD or DVD together with council contact details to:

  • Katie Whitehead
  • Director National Events and International Liaison
  • 8 Geils Court
  • Deakin, ACT, 2600.

To be eligible for consideration and inclusion in this year's National General Assembly, we must receive your multi-media submission by no later than 15 October 2006. For more information, please contact Katie Whitehead - katie.whitehead@alga.asn.au or telephone: 02 6122 9436.

Living in harmony funding projects 2006

The Department of Immigration and Multicultural Affairs invites applications from incorporated, not-for-profit organizations, and from local government, for funding for projects designed to engage the whole community in promoting Australian values and mutual obligation, as well as address issues of cultural, religious and racial intolerance in Australia.

Projects funded under the Living in Harmony Funded Community Projects program will promote harmony in local communities. Communities are in the best position to recognise local problems and find locally relevant solutions. Funding for projects will normally range in value from $5,000 to $50,000. Applications for amounts above $50,000 will be considered on merit. Local government authorities are encouraged to apply.

To register for access to an on-line application form, please visit our website and download the form titled Request for Access to the Living in Harmony Programme On-line Application (GMSE). For further information, call the Living in Harmony help desk on 1800 453 004.

Expression of Interest forms must be submitted by 12.00 midnight Friday 25 August 2006. No late applications or partial applications will be accepted.

ACIF code guidelines for local government

The Australian Communications Industry Forum (ACIF) Code Guidelines for improving local government involvement in mobile phone base station deployment are now available. The package can assist councils increase their involvement in the deployment of mobile phone base stations which do not require a development application (e.g. Low-impact facilities). The complete information package can be downloaded.

Independent town planning consultants Urban and Regional Planning Solutions in association with the Mobile Carriers Forum and representatives from local government associations and councils across Australia prepared the Guidelines package.

If you would like further information about the ACIF Code Guidelines for Local Government package please contact Nicole Halsey from Urban and Regional Planning Solutions on - 08 8333 3335 or Tanya Stoianoff, Executive Director, Mobile Carriers Forum on - 02 9279 0533.

Beazley, Carr head politicians to speak at NGA06

The Leader of the Opposition, Kim Beazley, will close this year's National General Assembly, while Senator Kim Carr, Shadow Minister for Housing, Urban Development, Local Government and Territories will also address Assembly delegates. ALGA President, Cr Paul Bell, said, "We are delighted to have the support of representatives from our federal parliamentarians - it demonstrates the spirit of cooperation that exists between local and federal governments". This year's keynote presentation will be given by Grahame Morris, the head of PricewaterhouseCoopers Office of Federal Government Services and heading ALGA's local government financing study. He will be joined by Barry Easther, Mayor of West Tamar Council - put under the media spotlight after the rock fall disaster at the Beaconsfield gold mine on Anzac Day - Robyn Moore, multi-skilled communicator, and the Founder and Chairman of Clean Up Australia, Ian Kiernan. Program and registration details are now available on the recently refurbished National General Assembly website.

International news  
Draining away

Over 50 drain covers have been stolen in the Belgian city of Charleroi in recent days as skyrocketing metal prices have made them lucrative, according to officials from the town hall's construction department. The sewer lids, made from cast iron, started vanishing last week and the council has ordered an investigation. The city's police department said it is taking the crimes seriously. "It's not the Glasgow-London train robbery of course, but it poses serious threats to people," Philippe Goffaux, a Charleroi police chief, told Reuters. "We put pressure on resellers of metals in the region and warned them they will be prosecuted if they are found with lid covers." A 40 kg sewer lid can fetch roughly €6 on the black market.
- Reuters

State of the Regions report 2005-06