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PM declares water our greatest conservation challenge

Water drops

Prime Minister John Howard has declared water scarcity the greatest conservation challenge facing Australia.

After appointing Liberal MP Malcolm Turnbull head of the new federal Office of Water Resources, Mr Howard said more needed to be done at a national level to foster collaboration between governments to tackle water problems.

"Water scarcity is one of the great challenges we have, in fact there's no greater conservation challenge in Australia at the present time than the water challenge," he told a community gathering at Pakenham, south-east of Melbourne.

Mr Howard later told journalists that the state and federal governments must look afresh at all options for reusing water.

"I cannot believe that you can't at least use recycled water for a whole lot of purposes other than drinking, and there are plenty of countries in the world that have used recycled water for drinking," he said. "But as a very minimum we have to have a more open mind. I mean, we have to as a country look at all of the options because it is a serious issue."

Mr Turnbull denounced current water pricing practices and said residents of Australian cities should be paying more for water.

Cr Bell welcomed the national approach to water management and cited a recent KPMG study which showed that said that South East Queensland councils' water businesses had been pulling their weight in the provision of water and sewerage supply infrastructure in response to the growth in that part of the state.

The assessment was carried out in response to claims by Premier Beattie that councils were making huge profits and siphoning them off into other council activities," Cr Bell said. "The KPMG report establishes that Mr Beattie's claim was "way off the mark."

"Capital expenditure on water and sewerage increased from $198.9 million in 2001/02 to $434.8 million in 2005/06, an annual compound growth rate of 21.6 per cent. This means that, for every dollar paid in dividends by the water businesses to their shareholders, $3.60 was invested in new capital projects."

Tasmanian Premier Paul Lennon has announced that a Ministerial Water and Sewerage Taskforce would be established to plan for Tasmania's future needs. The taskforce would consult with all interested parties, particularly local government, during the preparation of this report. Premier Lennon said improving Tasmania's water and sewerage services and infrastructure was a massive task but one the state government was committed to. "This infrastructure is spread throughout the state," he said. "There are three bulk water authorities, 18 councils running 90 water supply schemes and every council runs sewerage services."

Challenges ahead as councils prepare for broadband

IT Engineer

ALGA President Cr Paul Bell, has welcomed the recent regional broadband announcement by Communications Minister Helen Coonan and Deputy Prime Minister Mark Vaile, but says he is concerned that many councils face a possible skills gap.

"Connect Australia includes funding for the development of skills and capabilities in regional, rural and remote areas, however, we see the need for more work in this area. ALGA is keen to see leadership programs, lighthouse councils programs, and more mentoring and support programs."

"ALGA is a champion of the potential for broadband to improve regional, rural and remote communities. Our State of the Regions report of November 2005 claimed that a $3b investment to extend broadband coverage could create more than 10,000 jobs and provide an annual benefit to the nation of more than $920m a year, or more than $27b over 30 years."

"I am hopeful that the Broadband Connect program will result in a holistic response, rather than a limited one, and that all communities will benefit, in particular the rural and regional councils that need broadband services to facilitate efficient and effective service delivery to their communities.

"The relationship between carriers and councils is an important one and I support and welcome any developments which will deliver high-speed and affordable broadband across Australia, particularly to the 433 councils classified as rural and remote."

"Nearly all successful broadband programs involving the wider community in regional Australia have been undertaken with the cooperation, and often the leadership, of local government. Over the past eight years, local government has developed significant experience and expertise in undertaking innovative broadband projects to bring the technology to their communities.

"We must get on with the task of building our nation through major investment in improving and extending broadband. The regions that need the most help will gain the most benefit."

Cr Bell's call for a national change management strategy to help communities make the most of the infrastructure investment has been backed by Jon Black, executive director of the Council of Mayors (SEQ).

"It is imperative that the opportunities are seized by councils and that linkages with businesses and other regions are established early," Mr Black said. " The take-up of new technology is an essential component of the broadband roll-out."

Mr Black said that the Council of Mayors (SEQ) was in the process of putting together a region-wide bid before the November 30 Broadband Connect deadline.

ConnectSEQ is the Council of Mayors (SEQ)'s campaign to deliver next generation broadband to regional and rural areas of South East Queensland.

Communications Minister Helen Coonan and Deputy Prime Minister Mark Vaile announced the Broadband Connect funding guidelines in Cairns on Thursday 21 September, 2006. The deadline for funding applications is November 30. The media release of the announcement is available on:

www.minister.dcita.gov.au. The Broadband Connect Infrastructure Program guidelines and associated documentation is available from:www.dcita.gov.au/broadbandconnect

Funding will be limited to 500 local government areas with 3.8m households, where the government estimates there are about 635,000 residents who can not connect to broadband at speeds comparable to city services The Australian Government has earmarked up to $600 million for rural broadband projects as part of its Broadband Connect agenda.

Road vs rail - Productivity Commission draft report

Overtaking roadtrain

The Productivity Commission draft report on road and rail freight pricing was released last week.

The 500-page document is the result of a request from the Council of Australian Governments (COAG), of which ALGA is a member, in February to examine the vexed issue of whether road and rail transport are paying their way when using Australia's transport infrastructure.

COAG made that request after transport ministers last year rejected a proposal, called the "Third Pricing Determination" from the National Transport Commission to increase truck charges.

ALGA notes with interest the PCs proposal for the establishment of a possible Road Fund, funded through revenue raised from heavy freight operator user charges.

ALGA's submission will raise the operation of the proposed Road Fund to ensure that local government is not disadvantaged.

"We are concerned about the simplistic analysis by the Productivity Commission that local road access is best funded from rates," ALGA President Cr Paul Bell said.

"It appears that the Commission is not envisaging local government being funded from the Road Fund for the cost of providing local access for freight."

"It finds that the costing of externalities is difficult and imprecise (eg the impact of noise, pollution etc from both road and rail vehicles on communities) and then dismisses this with a recommendation for further work."

Cr Bell said ALGA also had concerns about how the proposed Road Fund might operate if all decisions were to be made on a purely economic basis. This raised the possibility that funds would be allocated to the projects in the major cities at the expense of regional areas.

The draft findings that have been making the headlines in the financial press are that:

  • large trucks (except B-doubles) on average are paying their way;
  • road charges should be more like prices rather than taxes;
  • there is no case for raising road freight charges relative to rail to force competitive neutrality with rail; and
  • a more economically and transparent basis for the allocation of funding by means of an apolitical Road Fund.

The Draft Report also examines the options for alternate mechanisms for charging for road use such as mass distance charging. The PC found that although this methodology is conceptually consistent with making road charges more like a price it had concerns about the implementation including the cost of developing systems of this nature. If Australia were to do so it would be a world leader.

The PC report is a draft only at this stage and interested parties are being given the opportunity to comment. ALGA has already made a submission to the PC and will be making a further submission on the Draft Report expressing the views and concerns from a local government perspective.

The PC is required to bring down its final report in December 2006 for consideration by COAG early in 2007.

The Draft Discussion Report can be found at: http://www.pc.gov.au/inquiry/freight/draftreport/index.html
From the President

The Federal Court's recent decision in a native title claim over Perth should serve as a reminder to all councils of the need to take native title matters into consideration when considering actions over areas where native title exists or may continue to exist. Failure to do so in the proper way can potentially expose councils to the risk for a claim for compensation if the activity affects native title.

The Federal Court's decision should also not be a major concern to local government because the decision excludes all freehold land and other areas where native title had already been extinguished by previous acts of the Commonwealth or State Governments and has regard to the extent of urban development and intensive farming in the claim area.

The claim area covers a substantial area of south west WA and includes the whole of the Perth metropolitan area as well as centres such as Bunbury, Busselton, Margaret River, Albany, York, Toodyay, Katanning, Merredin and many other towns. The Court decided to break up the trial of the Single Noongar application by first dealing with an area around Perth. The Court took this course because the State and Commonwealth Governments were keen to settle the question of whether native title still survives in the Perth area. The determination recognises the traditional association of the Noongar people to the greater Perth metropolitan area.

Justice Murray Wilcox concluded his judgement with advice about the need for all governments, including local government, to consider how their proper functions may be impeded by the decision and to carefully consider their future actions. Justice Wilcox urges the parties to consider engaging in serious thought and discussion before spending any more money on further legal action.

Indeed, some local governments in the area have already shown leadership by developing agreements with the Noongar people about how they may continue to conduct their business. For example, the City of Albany already has an Accord in place with the local Noongar people that sets out how the parties will work together for the benefit of the whole local community.

I strongly believe that this issue has relevance for the whole of local government. I encourage all councils to take Justice Wilcox's advice, to think carefully before resorting to litigation and seek to resolve outstanding matters in the same way that the City of Albany has done in recent times.

Cr Paul Bell AM
ALGA President

National Culture Ministerial Council

The President of the Municipal Association of Victoria, Cr Dick Gross, represented ALGA President Cr Paul Bell at the Ministerial Meeting of Cultural Ministers in Wellington NZ recently.

As the ALGA delegate, Cr Gross took the opportunity to emphasise the importance of local cultural events in both the expression of our national arts and culture and becoming the building blocks upon which our national cultural icons are built. This idea was picked up in the first page of the communiqué. "The communiqué is the most immediate manifestation of the meeting and I was happy that we were highlighted," Cr Gross said. He said that two other highlights were the support given to local government in relation to touring in regional areas and perhaps the most important, the recognition that local government infrastructure plays a vital role in cultural development.

Local govt electoral arrangements

Local government electoral arrangements in Australia are summarised on pages 12-13 of the 2004-05 Local Government National Report published by the Department of Transport and Regional Services. The Report can be accessed online.

Townsville: Queensland's first solar city

Townsville is set to cut its greenhouse gas emissions by more than 50,000 tonnes after being named as Queensland's first Solar City. Across Townsville, the initiative will involve:

  • The installation of solar panels in 500 homes and businesses;
  • The rollout of 2500 smart meters and 1700 in house energy display meters; and
  • The provision of energy efficiency advice to help thousands of households and businesses save on their electricity bills.

The Townsville: Queensland Solar City consortium will receive up to $15 million from the Australian Government, with the consortium contributing an additional $15 million to the project. More information on: www.greenhouse.gov.au/solarcities or www.ergon.com.au/environment

Report-a-hazard website

In an Australian first, Goulburn Mulwaree, Wingecarribee Shire and Wollondilly Councils have worked together to develop an online hazard reporting website to increase road safety.

The website was developed to make it much easier and more convenient for people to let councils know about hazards on the roads, pathways or cycleways. Hazards like missing signs, potholes, pavers that have lifted and so on can all be reported on the site and there is a different hazard reporting form for cyclists, motorcyclists, pedestrians or drivers of cars and trucks. Each form offers a list of appropriate option boxes to tick, which makes completing the form very quick and easy for anyone to use. As soon as the problem is noticed you can go online to complete the hazard reporting form - 24hours and 7 days a week. The website has been designed so any Council in NSW can participate.

The project is funded by the RTA as part of the Local Government Road Safety Program. More information on www.reportahazard.com.au

POSTbillpay logo

A partner of local government and local communities

At Australia Post we are proud of our longstanding association with the Australian Local Government Association and are pleased to be sponsoring the 2006 National General Assembly of Local Government.

Australia Post's network of Licensed Post Offices (LPOs) plays a central role in the social and commercial fabric of their local community. Many are family concerns that are often operated by licensees who are ratepayers in the community. Just over half of all LPOs are located with other businesses providing local employment opportunities. In more isolated areas the LPO may also be the sole provider of banking services.

Through the Postbillpay service Australia Post provides councils with close to 4,000 retail outlets as payment collection points, including nearly 2,000 in rural areas. Payments can also be made by phone on 13 18 16 or on the Internet at www.postbillpay.com.au. More than 80% of rate notices can be paid at Australia Post, and other types of bills - such as animal registrations, infringements and debtors - are increasingly collected via Postbillpay.

Billmanager is another example of how Post serves your community. Billmanager allows ratepayers to break large bills into smaller monthly or fortnightly payments. This means ratepayers can budget more easily and are less reliant on credit cards - avoiding debt. For councils it means receiving payments in advance and offering a cost-effective payment card service.

At this year's National General Assembly of Local Government, Australia Post will present innovative solutions that enable councils to collect payments for invoices produced in house using eLetter Solutions easy to use desktop software.

We hope you enjoy the National General Assembly and invite you to visit our exhibition stand to learn about Postbillpay and eLetter Solutions and share with us your views on how we can continue serving local government.

NGA2996
Salary sacrifice arrangements and councillors of local government bodies

The Tax Office has recently received requests for advice concerning whether a local government councillor can enter into an effective salary sacrifice arrangement with their council and, in particular, whether they can sacrifice a portion of their remuneration for superannuation purposes and thereby decrease their gross income as a councillor.

A councillor is not able to enter into an effective salary sacrifice arrangement unless the council they serve has made a unanimous resolution in accordance with section 446-5 of Schedule 1 to the Taxation Administration Act 1953 (TAA) to be subject to Pay As You Go withholding under section 12-45 of the Schedule (payment to office holder). This also results in the councillor being treated as an employee for a wide range of other taxation purposes.

An effective salary sacrifice arrangement is an arrangement where an employee agrees to receive part of their total amount of remuneration as benefits before the employee has earned the entitlement to receive that amount as salary or wages. The employee is then taxed under the income tax laws only on the reduced salary or wages and the employer is liable to pay Fringe Benefits Tax, if any, on the benefits provided. An 'employee' for current purposes is a person who receives, or is entitled to receive 'salary or wages' which in turn includes a payment from which an amount must be withheld under section 12-45 of Schedule 1 to the TAA (payment to office holder).

If the council has not made the requisite unanimous resolution (or such resolution has been cancelled by subsequent unanimous resolution), any salary sacrifice arrangement entered into with a councillor is simply a redirection of the councillor's salary and the income remains assessable to the councillor.

If you need more information about this topic please refer to:

  • TR 2001/10 Income tax: fringe benefits tax and superannuation guarantee: salary sacrifice arrangements
  • TR 2002/21 Income tax: Pay As You Go (PAYG) withholding from salary, wages, commissions, bonuses or allowances paid to office holders -
  • Or visit our visit the website at www.ato.gov.au
Vale - NSW Former deputy premier Sir Charles Cutler

Former NSW deputy premier and Country Party leader Sir Charles Cutler has died at the age of 88.

Sir Charles was the leader of the NSW Country Party from 1959 to 1975 and deputy premier in the government of Sir Robert Askin from 1965 to 1975.

Sir Charles was born in Forbes in 1918, served in World War Two and was elected to the NSW Parliament as the Country Party Member for Orange in 1947.

He served as minister for education, science, local government, highways and tourism.

Timber bridges - the campaign continues

2GB Presenter Alan Jones wrote to ALGA President Paul Bell this week as a result of our campaign for funding for local government to upgrade timber bridges. Councils and state associations across the country have been putting pressure on their state governments over this critical issue of community safety. Mr Jones had helpfully highlighted the problem on the Today Program on Channel 9 and called for the NSW Government to urgently fix the 1017 bridges or 63% that have been deemed dangerous by the RTA. Cr Bell wrote to Mr Jones to thank him for giving the state of our bridges the prominence it deserves. The response was:

"Dear Paul, Thank you for your note about timber bridges. Well, this is a national issue and of course, the buck passing, as you say, continues. But I'm really concerned about the distribution of funds to various sectors of government. And your sector comes off very much as a poor relation. Keep me posted on any developments. And keep at it. With best wishes, Alan Jones AO."

Groundwater management handbook - a guide for local government

The Sydney Coastal Councils Group has finalised and published the Groundwater management handbook - a guide for local government. The Handbook provides a single resource that promotes sustainable groundwater management. It has been developed so that the technical and management information it contains can be applied throughout NSW with a particular focus on the Sydney coastal region. It is the only one of its kind in NSW and provides technical, educational and environmental information on groundwater management. To purchase a Hardcopy copy or CD Rom of the Handbook please contact the Sydney Coastal Councils Secretariat on (02) 9246 7702. To download a free copy, go to www.sydneycoastalcouncils.com.au

Alice Springs Public Library wins 'library stars' award

Alice Springs Public Library won the delegates' choice award at the 'Library stars: best of the best' forum in Perth on 19 September, for its indigenous local knowledge program, Akaltye Antheme. This unique collection of library resources, ensures that books, newspapers, audio-visual materials and other items for, by and about the local Aboriginal community are conserved and available for all visitors to the library.

The 'Library stars' forum was held in conjunction with the Australian Library and Information Association's Biennial Conference. The forum was showcase for outstanding and innovative programs in the public library sector. From 39 high quality nominations from all States and Territories just seven were selected for the 'Library stars' forum. In addition to the program from Alice Springs Public Library, other presentations covered:

  • Burnside (SA) Library Service's 'Book in the Sky' project, using digital technology to provide books and other materials to people with sight impairment
  • Northern Territory Library Service's training and support program for community library officers in remote NT communities
  • Hume (Vic) City Council's bilingual storytimes in the community
  • Moreland (Vic) City Libraries' Read More program: a celebration of reading and Moreland's identity
  • South Australia's state-wide reading programs: 'The Big Book Club' for adults and 'The Little Book Club' early literacy program for children 0-5 years
  • Co-operative early childhood reading and literacy programs being led by the Cities of Salisbury and Playford Libraries (SA).

An inspiring and challenging keynote address was delivered by Rolf Hapel from Aarhus Public Libraries in Denmark. Aarhus Public Libraries have an international reputation for achievement and innovation. This was recognised in 2004 when the library service was awarded the prestigious Bill and Melinda Gates Foundation 'Access to Learning' award.

For more information about the forum see http://alia.org.au. The forum presentations will soon be available on the ALIA website (http://alia.org.au).

Quote of the week

"Surely our Barmy Army is tough enough to endure whatever emerges from that fecund repository of invective that is the Australian cricket fan."
    - London's Daily Telegraph, on the row over whether Aussies can call English cricket fans Poms.

International news  
Local government leaders gather NZ

Up to 50 nations will be represented at the Commonwealth Local Government Conference to be held in Auckland next March. Hon Jim Lloyd, Minister for Local Government, Territories and Roads, Australia will be a guest speaker.

The conference is expected to attract between 500 and 700 delegates made up of mayors, central government ministers, senior central and local government officials, and a number of Heads-of-Government.

The theme of the conference is Delivering Development through Local Leadership. The four-day event will offer elected members and officials in Australia the chance to meet their Commonwealth counterparts and to learn first-hand how local authorities in other countries are meeting the common challenges facing communities worldwide.

Registration is now underway. See http://www.clgc2007.org for conference details and booking.

State of the Regions report 2005-06