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PricewaterhouseCoopers study launched

A report into local government funding by PricewaterhouseCoopers was launched this week at Parliament House by the President of the Australian Local Government Association, Cr Paul Bell.

Cr Bell received the final report from Grahame Morris, Chairman of Federal Government Services for PricewaterhouseCoopers. The Chair of the Transport, Regional Services, Territories and Local Government Committee, Sophie Mirabella MP, hosted the event.

The study has found that 10-30% of councils have significant sustainability issues and that there is an estimated $14.5b backlog in infrastructure renewal work.

The report commissioned by the Australian Local Government Association (ALGA) recommends the establishment by the Australian Government of a $250m local community infrastructure renewals fund.

"Local government is responsible for around $13b in community infrastructure, much of which was established in the 1950s or earlier and is reaching its use-by date," Cr Bell, AM, said. "This community infrastructure is at the very heart of local towns and communities and includes libraries, ovals, walking tracks, community centres, public halls, senior citizens' centres, swimming pools and playgrounds."

The report says the backlog in infrastructure renewal has resulted from the growing gap in many councils between their revenue base and the funding required to deliver a broader range of services as well as maintain and renew the infrastructure which supports these services.

It says the problems facing councils are rising community expectations, expanding scope of services, constrained revenue opportunities, operating deficits, deferral of renewals, and infrastructure backlogs.

The report calls for federal, state and territory governments to provide greater support to help local councils with sustainability challenges to better meet the needs of their communities.

Cr Bell said that the report's finding showed that local governments needed to be put on firmer financial footing otherwise councils would be forced to cut services and provision of community facilities.

"Local government is playing its part with internal reforms through amalgamations, outsourcing of non-core operations, shared services between councils, and improved capacity to raise revenue through services," he said. "While more can be done to achieve greater cost efficiencies, this will not be enough to balance the books of many councils, which are caught in a cost versus revenue squeeze which is not of their own making."

PricewaterhouseCoopers recommend a twin-track approach for improving financial sustainability through the pursuit of further internal efficiency reforms and changes to intergovernmental funding.

Cr Bell said the Financial Assistance Grants received from the Federal Government were simply inadequate, adjusted annually through CPI and population measures, while actual costs were rising at CPI plus 2-3%.

"It is time local government gets a fair share of funding through direct taxation revenue. Unlike the state, local government does not have access to a growth tax such as the GST."

The PwC study findings back up research commissioned by four states - NSW, Vic, SA and WA - and the State of the Regions report 2006-07 released last week. The report is available from the ALGA website: www.alga.asn.au

Help a Mate Drought Relief Fund

What is shaping up to be Australia's worst drought has inspired some goodwill among those who face less dire circumstances. In what is becoming an inspiration for other regions, Wingecarribee Shire Mayor Gordon Lewis invited residents to donate food hampers, or individually tinned or packaged goods, children's toys or money to assist the people of the Lachlan Shire during the drought.

The Shire has been inundated with donations for its 'Help a Mate' drought relief fund. 'ALGA News' has heard that councilors can hardly get into their room at the council, it is so full to the rafters with gifts for Condobolin. Mayor Lewis is leading a convoy to take everything up personally on the 18th December. The council is currently sourcing trucks to carry the goods to where they are needed. It is heartwarming indeed to see the community spirit and generosity for another LGA displayed by Wingecarribee.

ALGA President Cr Paul Bell has encouraged other councils to consider adopting their own 'Help a Mate' drought relief scheme. "Wingecarribee is a shining example of building bridges between communities through selfless action," he said. "I encourage other councils around Australia to follow their lead and help our local regions which are suffering at this difficult time." Information on the areas and communities in the most desperate need can be found on the Bureau of Meteorology website.

For the 4-month period from August to November, generally severe rainfall deficiencies covered most of the southern two-thirds of SA, all of Victoria, northern and eastern Tasmania, most of NSW west of a line from Bega to Tamworth to Bourke, much of Queensland's western half, pockets along the south coast of WA and large areas in the northern half of the NT. Significant regions have had their driest August to November on record - especially over central SA extending into the far northwest of NSW and far southwest of Queensland, and also the tablelands and western slopes between the ACT and Dubbo in NSW. Record low totals also occurred around Esperance in southern WA.

Minister releases Broadband Blueprint for Australia

Following the release of the 'State of the Regions Report 2006-07' at the National General Assembly of Local Government which highlighted the critical need for a roll-out of high-speed fibre optic broadband across Australia to improve economic prosperity, particularly in rural and regional areas, the Australian Government has released a national framework for the future of broadband in Australia.

The Minister for Communications, Information Technology and the Arts, Senator Helen Coonan, yesterday released a Broadband Blueprint to provide a national framework for the future of broadband in Australia.

ALGA President Cr Paul Bell said he welcomed the Minister's invitation for all spheres of Government to participate in the development of an implementation plan and ALGA was keen to work with the Minister on this high-priority issue.

"It is essential for all levels of government and industry to adopt a strategic and coordinated approach to the rollout of scalable broadband infrastructure," Senator Coonan said.

"With a number of commercial rollouts underway and several more proposed, and the Australian Government poised to make its largest ever investment in broadband infrastructure, it is timely that Australia adopts a clearly defined national approach to broadband."

The Broadband Blueprint builds on the work of the National Broadband Strategy Implementation Group and was developed in consultation with State, Territory and Local Governments through the Online and Communications Council.

The Minister also appointed an Industry Advisory Group to broaden the base of advice to the Government during the formation of the Blueprint.

"The Australian Government recognises that broadband is a key contributor to Australia's future economic and social prosperity. The delivery of broadband is no longer optional. Rather, access to broadband infrastructure is critical for both the public and private sector to compete in a modern global economy.

"The private sector will continue to be the major driver of broadband investment. However, all levels of government must take responsibility for providing leadership and facilitating the delivery of broadband.

"Through the Broadband Blueprint, the Australian Government has invited all tiers of government to participate in the development of an implementation plan for investment in next generation broadband infrastructure, under the auspices of the Online and Communications Council," Senator Coonan said.

"By working together we can ensure that Australia becomes a world leader in the effective use of broadband."

Electronic copies of the Broadband Blueprint are available at www.dcita.gov.au

NSW LGSA lobbies for $1b for water and sewerage services

The Local Government and Shires Associations of NSW today called on the State Government and the Opposition to provide $1 billion over 10 years to reduce a backlog of water supply and sewerage services.

The Associations has released the second of a series of policy papers - titled Country Towns Water Supply and Sewerage Program - aimed at candidates in the 2007 State election.

The State Opposition has promised $100 million in each of the next four years; the State Government has not given a firm commitment regarding the future of the program.

The Associations state the original 10-year program saw councils meet their commitment to new works to meet population growth targets, but the Government fell short of its funding obligations by $439 million on an agreed backlog program.

The President of the Local Government Association, Cr Genia McCaffery, said government cuts to the initial program over recent years also saw reductions in subsidies from 50 per cent to 20 per cent for larger councils.

"The ground rules were changed on us several times. The Government even undertook a review of the program in 2003-04 without consulting us.

"The Government disputes our figures, but the reality is there are no more funds and there are still 210 water or sewerage programs on a waiting list.

"The Government also claims it has allocated $70 million this fiscal year, but that is not new money. It was committed under the old scheme," she said.

The President of the Shires Association, Cr Col Sullivan OAM, said many councils cannot afford to proceed with backlog projects because they have a limited rate base.

"It was not only larger councils which were forced to take a subsidy cut. The small towns projects saw subsidies drop from 67 per cent to 50 per cent.

"As it stands, many councils cannot commence on these works for fear of forfeiting a subsidy given the uncertainty in the current State Government.

"I'll predict this will be a major issue during the election campaign. Country towns need government support to secure water supplies during the most severe drought in our history," Cr Sullivan said.
From the President

I was delighted to officially receive the PricewaterhouseCoopers report into local government sustainability on Monday from Grahame Morris and Scott Lennon of PricewaterhouseCoopers. The handover ceremony was well attended by State Association colleagues and key stakeholders.

Thank you to MAV President Dick Gross, President of the Local Government Managers Association Bruce Davidson, NSW LGSA representative Shaun McBride, CEO of the Council of Capital City Lord Mayors Vanessa Crimmins, and Government Relations Manager of the Heart Foundation of Australia Rohan Greenland. I would also particularly like to thank the recently appointed Chair of the Transport, Regional Services, Territories and Local Government Committee, Sophie Mirabella MP, who showed great enthusiasm for the study and praised the role of local government in Australian federalism, making specific mention of the recent Parliamentary resolution.

Now the real work begins. This report backs up studies by Access Economics commissioned by three states - NSW, SA and WA - and a separate Victorian study - which show that local governments are facing major sustainability issues around the nation.

The report finds that 10-30% of councils are in difficult circumstances, particularly in rural and regional areas, and there is an estimated $14.5b backlog in infrastructure renewal work. We are talking about community infrastructure at the very heart of local towns and communities such as libraries, ovals, walking tracks, community centres, swimming pools, and playgrounds.

This report recommends a twin-track approach for improving financial sustainability through the pursuit of further internal efficiency reforms and changes to intergovernmental funding.

The report makes a clear case for local government to get a fair share of funding through direct taxation revenue. We are already doing our bit through internal reforms such as amalgamations, shared services, outsourcing of non-core operations. The report recommends setting up a $250m local community infrastructure renewals fund.

I am looking forward to the debate that will be generated by the release of the report and appreciate the support of state associations, the backbench committee, and our key stakeholders.

The report is important in highlighting the challenges facing local communities around Australia. As I said when I launched the State of the Regions report last week, the Australian economy will not perform to its fullest capacity if regions are operating below their potential.

Communities quite rightly expect their facilities to be of an adequate standard and quality of life suffers if libraries are crumbling, bike tracks are in a dangerous state of repair, sporting facilities and ovals are in a third-rate condition and council facilities used for providing meals on wheels and other community services are sub-standard.

Over coming months, I urge councils through State Associations to document examples of failing infrastructure and together through ALGA we will ensure that this issue is at the forefront of national debate. We must win over key opinion leaders and decision-makers in Federal Parliament and focus on behind-the-scenes lobbying in the initial stages of the campaign.

The media coverage we have received as a result of the launch has been positive and assisted us in our efforts. In particular, the supportive media releases put out by State Associations and our partners have been extremely valuable. As long as we keep singing from the same songsheet, we will reap the rewards of taking a position of restraint and unity in our public statements.

The launch marked just the beginning. Over the next week or so, all councils will receive a mailed copy of the executive summary of the PwC report. It is also available on the ALGA website - www.alga.asn.au

By the way, for all those who participated in the National General Assembly - I very much appreciated your support and am deeply honoured to continue as your President for another term. We have unfinished business to attend to and I am committed to keeping up the momentum we have generated with our '3Fs' campaign and our push for a national community infrastructure fund.

Cr Paul Bell AM
ALGA President

PM rules out bipartisan plan on health responsibility

Prime Minister John Howard has ruled out transferring responsibility for health to the federal government because he says it would make federation meaningless.

A bipartisan inquiry into health funding yesterday recommended handing responsibility for services to whichever government could perform them most cost-effectively, irrespective of their historical roles.

Current funding arrangements led up to $4 billion being wasted every year, the report, 'The Blame Game: Report on the inquiry into health funding,' said.

It advocated taking a national approach to health care to stop the state and federal governments blaming each other for health failings.

Mr Howard was asked in question time about a statement Health Minister Tony Abbott made in September 2005 - that blame shifting in the health system would only end if one level of government was in charge.

"I think the blame game should stop and the blame game stops when each level of government properly funds and operates the responsibility given to it by the Australian constitution," Mr Howard said.

Mr Howard said it was not his view that the commonwealth should take over running public hospitals.

"I believe state hospitals are best run by state governments," he said.

"If you are interested in co-operative federalism, the last thing you would do is give total responsibility to the commonwealth government for fundamental areas like health.

"If you move all of health and all of education to the federal government, you might as well wind up federation. you might as well wind it up."

Mr Howard said he had never disguised the fact he would chose a different system of government if starting the country again, but the existing regime would work well if each level of government discharged its own responsibilities.

Mr Abbott has fallen in line with Mr Howard since his 2005 comments, but has more recently has proposed handing the running of public hospitals to private managers.

He will be seeking agreement for the plan in the next health care funding agreement between state and federal governments, due when the present agreement expires June 30, 2008.

Hornsby Shire Council wins environment award

Hornsby Shire Council has won the premier award in the 2006 Local Government Excellence in the Environment Awards announced today at the NSW Art Gallery.

The awards are sponsored by the Local Government and Shires Associations of NSW (LGSA). They have been staged annually since 1998.

The Minister for Local Government, the Hon Kerry Hickey, presented Hornsby Shire Council with a $10,000 study tour package after they won the LGSA-sponsored Local Sustainability Award

See all finalists and descriptions of projects at: www.lgsa-plus.net.au

The world's best mayor

Five years after becoming Melbourne's first popularly-elected mayor, Mr So has pipped the mayors of Amsterdam and Harrisburg, in the United States, to be voted world's most outstanding mayor.

He was the only Australian mayor to be short-listed in the poll of 103,000 people who voted on 677 mayors around the globe.

Mr So, who finished tenth in the same City Mayors survey last year, was typically coy when accepting the accolade today, crediting the city, not the man.

"I am humbly honoured and this recognition, of course, is for the city of Melbourne and for the people," he told reporters, before cracking open a bottle of sparkling white wine.

"Congratulations to everyone.

"I thank the people of Melbourne for their support and of course for their trust and faith."

Mr So said the highlight of his tenure was having the opportunity to work with different communities and serve the city he loves so much.

He said 2006 has been a great year for the city, which is celebrating the 50th anniversary of the 1956 Olympic Games.

"A lot has changed in the past 50 years, but one thing that remains, is the friendliness and the welcoming nature of our people, and this is something that is very unique and very special," he said.

When quizzed whether he had any ambitions to enter state or federal politics, he told the media pack it just was not his thing. "That has never been my cup of tea," he said.

"I'm always the people's man." Mr So received 16,000 votes in the internet poll and will receive his trophy next year.

Qld: More than 21,000 Brisbane residents install rainwater tanks

More than 21,000 Brisbane residents have taken advantage of a rebate scheme to install rainwater tanks during south-east Queensland's prolonged drought, Lord Mayor Campbell Newman says.

Mr Newman announced Brisbane City Council would increase the rainwater tank rebate budget by $7.5 million to $12.5 million this financial year.

"The goal of our rainwater tank rebates is to make them more affordable to homeowners, so that more and more homeowners use alternative water supplies," said Mr Newman.

"It is really encouraging that people are doing whatever they can to reduce their use of potable water - and our rainwater tank rebate scheme means more people are installing tanks as an alternative water source."

The council provides a $500 rebate for tanks with a capacity of between 3,000 and 4,999 litres, or a $750 rebate for tanks which hold 5,000 litres or more.
Airport Act to be amended

"The deputy Prime Minister and Minister for Transport and Regional Services, Mark Vaile, introduced legislation on 30 November to amend the Airports Act.

The legislation is about changing the way Australia's 22 Federal airports consult with states, local government and the community about developments on airport land.

The Bill does not change the broad policy framework for privatised airports ie the Australian Government will continue to control planning at airports which will remain as Commonwealth property. It does however make a number of amendments the consultative arrangements in regard to developments at airports in response to concerns of state government and local government.

The amendments on how and when airports consult appear to be (at least in some cases) useful but relatively minor as the control of development at airports stays firmly with the Commonwealth.

The amendment Bill was debated this week in the House of Representatives. The Guidelines associated with the amendments, and foreshadowed at ATC, were released to coincide with the debate.

The Bill is expected to be passed to the Senate where the Government intends to refer the Bill to the Standing Committee on Rural, Regional Affairs and Transport. That Committee would normally seek public comment and is expected to report in March/April 2007. According to Minister Vaile's office the Government has an open mind to suggestions and will seriously take into account any recommendations that may be made by the Committee.

Councils interests in this issue can find Mr Vaile's second reading speech and the Bill at http://parlinfoweb.aph.gov.au

ALGA will monitor this issue and keep you informed of developments.

Local Government's commitment to future NRM programs

At the end of November 2006, the ALGA Board endorsed a set of national policy commitments for local government working in the area of natural resource management. These policy commitments highlight the importance local government places on natural resource management and working within the regional NRM arrangements. In addition, a resolution adopting these policy commitments was adopted by the 2006 National General Assembly of Local Government. ALGA and the State Associations will now work on implementing these policy commitments.

Adoption of a framework for future NRM programs

At their November meeting, Environment Ministers agreed to adopt a new Framework to guide the development of future NRM programs. The Framework calls for an enhanced role for local government, in particular for stronger partnerships. This may be achieved through the development of agreements between the spheres of government and regional NRM bodies which outline the partnership arrangements and demonstrate a willingness to work together.

Key highlights of the Framework are the adoption of four themes to guide investment: biodiversity conservation, salinity and water quality, coastal and peri-urban issues, and soil health and productive, sustainable landscapes. There are also three cross cutting issues that future initiatives should address: climate change, greater local government participation and enhanced indigenous engagement. In particular, the Framework notes the important role local government will play in addressing coastal and peri-urban issues.

The programs behind the Framework will continue to be developed and the current bilateral agreements will be modified to administer the future programs. Current programs end on 30 June 2008. The Framework is available on www.nrm.gov.au

$8.3M boost for tourism across Australia

The Australian Government has announced $8.3 million of funding to support innovative and regional tourism projects across Australia. This funding has been made under the third round of the Australian Government's $31 million Australian Tourism Development Program. A full list of the successful projects is at www.ausindustry.gov.au

$15 million boost for national e-learning strategy

The Australian Government has invested a further $15 million in a strategy designed to apply technology to vocational skills training for thousands of Australians. The Australian Flexible Learning Framework, the national training system's e-learning strategy, has been asked to continue its work for another year by the Australian Minister for Vocational and Technical Education, the Hon Gary Hardgrave MP. Since 2000, the Australian Government and all States and Territories have collaboratively funded the national training system's e-learning strategy to support flexible learning in the vocational and technical education (VTE) system through e-learning.

Planning Report Card

The Planning Institute of Australia recently launched their National Planning Report Card. The Report Card reveals how the Australian planning system is performing. The results also show that some states are performing better than others but there is still a lot of work to be done. Over 650 PIA members responded to the online questionnaire and rated their state / territory A, B, C, or D against the 10 criteria. "Overall the planning system is performing reasonably well against three initiatives. Action on Growth Management, Public Participation and Streamlined assessment is underway in most states but as a whole the country needs to improve against the other seven criteria. At the very best only 65% of respondents rated their state A or B against any criterion", PIA Chief Executive, Di Jay said. Further information on the Report Card can be found at www.planning.org.au

Report on the State of Australia's Environment

A comprehensive independent report tabled in Parliament outlines progress and pressure points on the state of Australia's environment, the Minister for the Environment and Heritage, Senator Ian Campbell said today.

"The Australia State of the Environment 2006 is the nation's most wide-ranging environmental report card to date,' Senator Campbell said. "It is the third in a series of studies prepared every five years for the Australian Government by an independent committees of experts. This report is a great resource for government, industry and the community. It tells us what we are doing well in caring for the environment and what we need to do better."

The report tracks changes in a range of areas including atmosphere, biodiversity, human settlements, inland waters, coasts and oceans, natural and cultural heritage and the Australian Antarctic Territory.

The report outlines key achievements in environmental management since 2001, including:

  • a four-fold increase in Australian Government spending on the environment;
  • massive decreases in land clearing in many states which in turn has had a positive impact on Australia's biodiversity;
  • major advances in protection for the marine environment;
  • generally good air quality in most capital cities;
  • improved water management through the Australian Government's national water reform agenda.

The report also outlines key environment challenges for Australia, including the cumulative impacts of increasing populations on Australia's coastline; the need for continued waste reduction and recycling efforts; the poor condition of land, inland waters and coastal lakes in some parts of Australia; pressures on some of our fisheries; and adapting to the impacts of climate change.

A printed copy of the summary (including a CD-ROM containing the full report and accompanying documents) can be ordered by completing the order form, by phone 1800 803 772 or by email ciu@deh.gov.au

Quote of the week

"The next election is one of those that comes along once in a generation. It is an election where the country is at a fork in the road and it has to choose which path it's going to take forward."
    - Julia Gillard, new Labor Deputy Leader

International news  

People in a small town in western Canada are so fed up with the rotten state of their main road that they came up with an unusual form of protest - a calendar that shows them posing nude in the potholes.

One inhabitant of Leader, Saskatchewan, is shown sitting in a canoe that is perched in a pothole.

Another has his dignity preserved by a well-placed camera while a third man covers up with a strategic hubcap.

"The initial impression when people open the calendar for the first time is 'Oh my God!' It's pretty dramatic," said Wayne Elhard, the local MP.

Leader, a town of just 1000 in a largely farming area of southwest Saskatchewan, says it can't afford to fix all its roads.

"The potholes are not small, one-foot diameter potholes. They are many feet across and sometimes they're as deep as a foot deep and sometimes they will stretch for yards," Mr Elhard told CBC television today.

He said that during the summer, local authorities had covered the worst stretch of the main road with gravel to improve safety.

State of the Regions report 2006-07