From the President
2007 is a crucial year for local government. The Federal Budget will be brought down next month, in July we have our annual Roads and Transport Congress, and we are likely to see a federal election later in the year.
Local government is an important part of Australian federalism and we continue to demonstrate our ability to deliver services directly to Australian communities through a range of programs such as Roads to Recovery, aged care, housing, the environment and child care.
In the next few days, all councils will receive from ALGA two very important policy documents which outline our policy priorities and we hope will contribute to shaping significant elements of this year's policy agenda.
You may wish to use these documents when raising local government issues with local MPs, Senators and federal election candidates.
The first is ALGA's Budget Submission – 'Delivering Economic Growth and Social Cohesion for Australia.'
ALGA's Budget Submission outlines 5 strategic priorities that local government believes the 2007 - 08 Federal Budget should pursue. They are: continued commitment to core Australian government services and programs including support for families; improved funding for local government including a proposed Community Infrastructure Fund; investment that supports export-orientated businesses; targeted programs to meet skills shortages; and Indigenous services and housing.
The second document is the 'Local Government Roads and Transport Strategy.' A 10-year strategy, it outlines the transport challenges facing Australian cities and regional communities and provides a five-part plan that focuses on issues such as congestion, the effects of pollution and greenhouse emissions, dealing with an ageing population and freight management. The strategy builds on the highly successful Roads to Recovery and Black Spot Programs which are so important in terms of connecting and protecting the safety of local communities around Australia.
The Budget Submission and the Roads and Transport Strategy are available from today on the ALGA website.
I encourage all of us in local government to download and read both documents and look forward to working together to ensure that local government priorities are a key feature of the 2007 political and policy landscape.
Cr Paul Bell AM
ALGA President
Financial Sustainability for local government - the Victorian Context
Local government in Victoria has undergone a continual process of structural and efficiency reforms for over a decade. Following amalgamations from 210 to 79 councils in 1994, the MAV implemented two key initiatives to monitor, assess and improve the financial sustainability of the sector.
A detailed understanding of the challenges facing councils dates back to 1997-98 when the MAV began analyzing financial data. The MAV's initiatives are based on the view that a council's financial health is strongly linked to its ability to maintain and renew its infrastructure.
In Victoria, the cumulative underspend on assets was exacerbated by the Kennett Government's 20 per cent rate cut in 1994 and rate capping in place until the late 1990's. In 1997 the Victorian Government undertook a landmark study into the state of local government infrastructure which provided the impetus for improved alignment of financial and asset management practices.
In 2002 the MAV introduced the Step Asset Management Program to further improve the sector's infrastructure knowledge and management. The program has identified funding liabilities for all asset classes in all Victorian councils for the first time, thus enabling the development of detailed asset management plans to inform budget processes and more rigorous and independent assessments of asset management capabilities.
More strategic and sustainable programs being adopted by Victorian councils include decisions to extend the life of assets by optimising maintenance practices; identifying at risk assets and rehabilitating them before large-scale renewal is required; and achieving gains in productivity, service delivery and operational effectiveness. Asset rationalisation to reduce the liability placed on councils is also taking place, primarily driven through community planning models adopted by councils and assisted by the MAV through the 'Lighthouse' capacity building program.
Despite the ongoing improvement in councils' asset management practices, the most recent data from the Advanced Step Program has calculated an annual infrastructure spending shortfall of $280 million over the next five years unless more financial assistance is provided to the sector.
The benefits of the MAV Step program have been recognised by the Victorian Government, the Federal Government and in the recent PricewaterhouseCoopers report; with similar models being adopted in other Australian states to improve the sector's asset management practices.
Alongside the Step program, the MAV Viability Index provides a comprehensive picture of the financial health of Victorian councils. Unlike other methodologies, the MAV's analysis sets itself apart by assessing each council's shortfall in capital spending, long-term debt and relative rate effort to identify those facing financial distress. This is overlaid with a council's operating surplus or deficit, local population trends and median taxable earnings to further measure the extent of the problem.
The MAV Viability Index has found the characteristics of councils most financially at risk are those with an ongoing operating deficit, relatively high rate effort, high debt commitment and declining population. Councils that fall into this category are predominately located in rural areas, have extensive road networks, serve large geographic areas and have small populations.
Using this methodology, the MAV has assessed 13 councils as financially at risk, with 12 being in Exceptional Circumstances declared areas where drought conditions are further magnifying financial challenges in those communities. Councils at the lower end of the MAV Viability Index are also financially distressed largely due to their past and current inability to fund capital spending necessary to maintain ageing infrastructure, as well as debts inherited through council amalgamations.
As a result of the MAV's ongoing research and analysis into financial sustainability, all Victorian councils have strategies in place to improve their financial position and determine the best course of action to achieve long-term financial sustainability.
There is strong commitment within the sector to demonstrate improved council financial and asset management capabilities, as well as the pursuit of reforms to enhance efficiency, performance and accountability. However, this work must be matched with reforms to intergovernmental funding arrangements that ensure the sustainable future of local government.
Democracy compromised with New Local Govt Commission
Democratic principles and the right of locally-elected councils to shape their futures had been seriously compromised by the announcement of the establishment of a Queensland Local Government Reform Commission, Local Government Association of Queensland president, Cr Paul Bell, said.
Queensland Premier Peter Beattie has ordered sweeping changes to local government which could force the mass amalgamation of smaller councils.
Mr Beattie has announced the government would set up a Queensland Local Government Reform Commission to consider changes to council boundaries before the next local government elections in March, 2008.
The move came as the council election date was brought forward two weeks to March 15 to avoid conflict with the Easter holiday.
"We've seen the Beattie government disallow a process that's now been running for 12 months, that's been engaging 118 mayors, councils and communities in looking at reform ... and now we've just seen that completely dismissed," Cr Bell said.
Cr Bell said the state government had betrayed councils and as late as last week made them believe it still supported the Size, Shape and Sustainability (SSS) review.
"We believe that there could be significant job losses in local government if this (plan) is not held to some account," Cr Bell said.
The commission will be chaired by former electoral commissioner Bob Longland, who will be supported by six other commissioners including former local government ministers Terry Mackenroth and Di McCauley and former Queensland Liberal Party leader Bob Quinn.
It will look at each of Queensland's 157 councils, with the exception of Brisbane City Council, which operates under separate legislation.
The commission will report back to the government by August and the reform process will then be subject to vote by parliament by September.
ABS Indigenous Housing Survey
The ABS 2006 Community Housing Infrastructure and Needs Survey (CHINS) with updated statistics on Indigenous housing and infrastructure is available from ABS Website
Information presented includes: details of current housing stock, management practices and financial arrangements of Indigenous organisations that provide housing to Aboriginal and Torres Strait Islander people; and details of housing and related infrastructure such as water, electricity, sewerage, drainage and solid waste disposal, as well as other facilities available in discrete Aboriginal and Torres Strait Islander communities such as transport, communication, education, sport and health services.
It also includes time series information incorporating selected results from the 1999 and 2001 CHINS as well as maps showing the distribution of Indigenous housing organisations and discrete communities across Australia.
Federal Indigenous Affairs Minister Mal Brough said the survey confirmed his view that Indigenous housing programs need a major overhaul.
"The survey adds weight to the findings of the independent review by PricewaterhouseCoopers that the Community Housing Infrastructure Program had failed to deliver," Mr Brough said.
"The survey shows that the old ATSIC community based housing approach has not been delivering results . In fact it is going backwards," Mr Brough said.
"Over the last 5 years despite spending around $1 billion on the old ATSIC housing program , housing stock increased by only 2% or 471 homes . There has been a marked deterioration in the state of that housing stock".
"After the effects of inflation are taken into account, the average weekly rent collected by Indigenous Community Housing Organisations (ICHOs) has fallen. It is only around $40 per week. Average rents paid are as low as $29 per week in South Australia and $28 in the Northern Territory," Mr Brough said.
"The number of dwellings needing major repairs has increased from 19% to 23%. At the same time, ICHOs spent 8% less on maintenance per dwelling in 2006 than in 2001".
"There were however some significant improvements to infrastructure with gains in access to town water, sewerage and electricity. But there is no escaping the fact that the money channelled through ICHOs is not delivering the goods and we need a new approach. The number of ICHOs has fallen from over 616 to 496 and this is a step in the right direction."
He said the Government was considering options for reforms to Indigenous housing programs and would be taking the results of the ABS Survey into account.
MAV Local Government Workplace Conference
The MAV Local Government Workplace Conference will be held from 15 - 16 May at Melbourne Exhibition Centre. The conference will examine the unique and diverse challenges of the local government workplace. Speakers include:
- Peter Wilson, AM, National President of the Australian Human Resources Institute;
- Organisational Culture expert Colin Pidd;
- Don Clayton, author of Leadershift; Geoffrey Court, People and Culture Manager, SalesForce, the current Hewitt Best Employer ANZ;
- John Cairns, Executive Director, State Services Authority;
- Susan Allen, Director, Public Sector and Community Services Division, WorkSafe; and
- Nick Crossling, CEO, Government Skills Australia.
The agenda will appeal to local government human resource, organisational development, OHS and risk management practitioners as well as CEOs and Directors with an interest in workplace issues. The two-day conference will also feature an exhibition area, where relevant providers will have display areas. The Wine Tasting Networking event sponsored by Right Management will be held in the exhibition area on the evening of the first day.
For further information, go to http://www.mav.asn.au/workplace/lgwpc or contact Jodie Delaney, 9667 5524, jdelaney@mav.asn.au.
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Launching of 2008 Australian Govlink Publication
Australian Publishing Resource Service (APRS P/L - www.aprs.com.au ) is announcing that the 2008 Australian Govlink publication will be launched at the National General Assembly of Local Government, 26-29 November 2007, in Darwin, Northern Territory.
Editorial submissions are welcome from Australian local Councils who may wish to participate in this publication.
Articles can include Council success stories, new initiatives, innovative projects, award-winning stories, etc. Stories can be up to 4 A4 pages and high resolution images are welcome within this context.
For a disc or current hard copy of the current edition of Australian Govlink, and to make a submission for the 2008 edition, please email: richard@aprs.com.au
NB. There is no cost to Council for submissions and published editorials/articles will be at the Editor's discretion.
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Rudd addresses National Press Club
In his first national speech as Labor Leader, Kevin Rudd spoke about industrial relations, federalism and small business.
He spoke of setting a national objective in partnership with the States and Territories to harmonise key regulations imposed on businesses operating across jurisdictions within five years of coming to office. This includes occupational health and safety regulation, administration of payroll tax, building codes, and trades and professional body recognition. Labor would commission the Productivity Commission through the COAG Reform Council to be responsible under statute for estimating the costs and benefits of harmonisation in each area.
He said Labor would "offer positive plans for Australia's future that anticipate the major changes and major challenges that now confront us – from the rise of China and India, the water crisis that now extends to every state in the Commonwealth, through to the reform of an increasingly dysfunctional Federation."
In relation to industrial relations and local government, Mr Rudd said that under a Labor Government current arrangements for the public sector and local government would continue with many of these workers regulated by State industrial relations jurisdictions.
Murray-Darling Basin Irrigation Allocations
There will be no water allocated to irrigators in the Murray-Darling basin for the coming year unless there is substantial rain in the next six weeks, Prime Minister John Howard said yesterday.
Mr Howard described the situation as "unprecedentedly dangerous", following a report of state and federal officials that examined water availability in the Murray-Darling system.
"Unless there are very substantial inflows - and for that read heavy rain leading to runoff into the catchment areas - prior to mid-May 2007, there will be insufficient water available to allow any allocation at the commencement of the 2007-08 water year for irrigation, the environment or for any purposes other than critical urban supplies," he said.
"If it doesn't rain in sufficient volume over the next six to eight weeks, there will be no water allocations for irrigation purposes in the basin."
Mr Howard stressed urban water supplies were not at risk.
Super myths, facts and tips
The Tax Commissioner has released a fact sheet on super myths, facts and tips.
This is important information ALGA News has been asked to pass on to its members and readers. The link directly to the fact sheet is www.ato.gov.au/super/content.asp?doc=/content/00097019.htm
Clever Networks - smart broadband solutions for rural and regional Australia
The Minister for Communications, Information Technology and the Arts, Senator the Hon Helen Coonan, has announced that sixteen projects have been successful under the first round of funding for the $113 million Clever Networks program.
Senator Coonan said the following projects funded under the Coordinated Communications Infrastructure Fund (CCIF) provide a great example of what might be achieved under the Clever Networks Program:
Projects include:
The Loddon Connect CCIF project - provided 33 Victorian communities with access to a business grade DSL service providing clinical and administrative benefits to health service providers.
The District Council of the Yorke Peninsula CCIF project - provided enhanced community access to data, voice and video capabilities within a 10 km wireless local loop around the towns of Maitland, Minlaton, Yorketown and Warooka in South Australia.
"The 16 successful Clever Networks projects will use the latest in broadband technology to improve service delivery in the areas of health, education, government and emergency services for communities throughout rural and regional Australia," Senator Coonan said.
Included in the range of successful applications are projects that will provide:
- improved technology in public hospitals and health care facilities allowing doctors and health care providers to share patient records and x-rays across secure networks—delivering better patient services for communities in regional and remote Australia remote diagnostic services to local communities and rural homesteads;
- improved care and services to clients of health and disability services with encouraged flexible learning for therapists;
- improved communications to better deliver local business and community-wide benefits in regional centres;
- supporting integrated emergency services management to improve coordination of police, fire and emergency services; and
- enhanced broadband connections to many regional and remote schools, including those in Indigenous communities.
Meanwhile Federal Communications Minister Helen Coonan says she is making progress in negotiations about upgrading the broadband network.
Telstra's plan to build a high-tech fibre optic network has stalled because of a dispute about how much it could charge rivals for access.
A consortium of other telcos is lobbying for permission to build its own network. Senator Coonan will not predict when a deal will be done but says she is getting closer to a resolution.
"The issues to do with the roll-out of broadband are very complex," she said. "We're continuing to work through issues such as access, access prices - so there's some significant progress."
More information about Clever Networks is available at www.dcita.gov.au/clevernetworks.
Rainwater tanks a viable urban water solution
A new study shows rainwater tanks are a cost-effective solution to the urban water problems plaguing Melbourne, Sydney and South-East Queensland.
The report - prepared by economists Marsden Jacobs Associates for the Australian Conservation Foundation, Environment Victoria and the Nature Conservation Council of NSW - found the widespread installation of rainwater tanks in Australian capital cities would mean big savings in water, energy and money.
The study found:
Rainwater tanks are cost competitive with dams and desalination plants.
Rainwater tanks are five times more energy efficient than desalination plants and twice as energy efficient as the proposed Traveston dam, per megalitre of water produced.
If governments deployed rainwater tanks to 5 per cent of households each year in Sydney and South-East Queensland, dams and desalination plants planned for 2010 could be delayed past 2026 (Sydney) and 2019 (SEQ).
Most Australian houses are suitable for a rainwater tank. In Sydney 65 per cent (or 1.1 million houses), in SEQ 73 per cent (or 900 000 houses) and in Melbourne 72 per cent of existing houses have potential for a rainwater tank.
"While 38 per cent of households in Adelaide have rainwater tanks, fewer than 6 per cent of the houses in Melbourne, Sydney, South-East Queensland and Perth do," said ACF's urban water campaigner Kate Noble.
The Local Government and the Shires Associations of NSW has urged the NSW government to allow councils to introduce mandatory rainwater tank policies for new homes.
"Local government encourages the installation of rainwater tanks, and several councils, including North Sydney, have expressed interest in mandatory installation of these tanks in their local area for new dwellings," NSW Local Government Association president Genia McCaffery said.
"While local government is supportive of the Building Sustainability Index (BASIX), which sets targets to reduce the demand for drinking water and energy consumption, it would also be great to have it reviewed."
"Some councils would like to go beyond the water reduction targets that apply to their local area, which for most new residential development is currently 40 per cent."
Port Augusta Mayor to be SA president in July
Port Augusta Mayor Joy Baluch has been provisionally elected by SA councils as President of the Local Government Association.
Mrs Baluch has been Mayor of Port Augusta for 22 years and has served in Local Government for 33 years including 11 years as a Councillor, 13 years as LGA vice-president and State Executive Member.
"Joy brings with her a wealth of experience in and commitment to Local Government, her own community and the wider community of South Australia," current LGA President Cr John Rich said.
During her election campaign Mrs Baluch said her principal interests include pursuing recognition for and strengthening Local Government as a true and respected tier of Government.
Mrs Baluch said Local Government is being asked to be more accountable and responsible to their communities but without the required resources. She said that Local Government must retain its leadership in social reform and community programs but that access to alternative sources of revenue was imperative to maintain an acceptable and sustainable standard of infrastructure.
Quote of the week
"The Promised Land always lies on the other side of a wilderness."
Havelock Ellis
International news 
Anti-flatulence pill could save planet
A pill that cuts flatulence in cows has been developed in Germany as a way of tackling the smelliest contributor to climate change.
Methane gas produced by cows is responsible for 4 percent of worldwide greenhouse gas emissions, according to scientific estimates.
The solution is a fist-sized plant-based pill, known as a bolus, which when combined with a special diet and strict feeding times is supposed to reduce the level of methane gas produced by cows.
"Our aim is to increase the wellbeing of the cow, to reduce the greenhouse gases produced and to increase agricultural production all at once," said Winfried Drochner, Professor of Animal Nutrition at the University of Hohenheim in Stuttgart.
"It is an effective way of fighting global warming."
Prof Drochner, who has led the groundbreaking study, believes energy normally lost when the cow expels methane could help boost the cow's metabolism.
"The idea is that the cows would use the methane to produce glucose instead of passing it as wind. In turn this should help them to produce more milk."
"The fist-sized tablets mean that microbiotic substances can slowly dissolve in the cow's stomach over several months," said Prof Drochner.
Over the past 50 years methane levels in the atmosphere have risen 600 percent, and are predicted to continue rising.
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Community Safety & Security Conference
Sydney May 17 - 18 2007
Innovative strategies to improve safety and security within communities will be the focus of a national conference for local government safety and community managers to be held in Sydney on 17-18 May.
Local government managers and councillors, concerned about growing vandalism and aggression within communities, will have a unique opportunity to learn from the experiences and strategies being pursued by councils across Australia at the Community Safety and Security Conference being held in Sydney on 17-18 May. It will focus heavily on case studies to enable delegates to draw important lessons to enhance the welfare and safety of their own communities.
Award-winning initiatives will be presented at the conference including community safety & security services provided to residents by the Cities of Melville and Cockburn in WA, how graffiti and vandalism is being tackled in Queensland, and Sutherland Shire Council's response to the Cronulla riots. As well, there will be important presentations on the mobilisation against substance abuse and violence from Victoria.
Invited expert speakers include Tony Pearce, the Director General, Emergency Management Australia; Assistant Commissioner Frank Prendergast of the Australian Federal Police, and NSW Police Superintendent, Wayne Dedden, the winner of a Australian Crime and Violence Prevention Award in 2006. Senior managers from the City of Monash, Sutherland Shire, Hervey Bay, City of Charles Sturt, City of Sydney, Logan City and the City of Melbourne will be amongst those addressing this important two-day event.
Delegates will also have the opportunity to hear about the success of community; business and local government partnerships with police; and the role of CCTV cameras in monitoring and deterring vandalism and violence. The conference will examine the mechanisms for local government to take on its growing security role and it will also provide an opportunity to network with community safety and development managers in local government from all parts of the country. More information about the conference is now available on www.halledit.com.au or telephone Denise McQueen on 03 8534 5021 or email denise.mcqueen@halledit.com.au
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2007 National Awards for Local Government
entries now open…
The theme for the 2007 National Awards for Local Government is 'Local government - working hard for Australians'. The aim this year is to showcase and reward the unrecognised hard work that's going on in councils around Australia.
The 2007 National Awards for Local Government gives councils an exciting opportunity to reveal the projects they have been working on in response to the problems and challenges they face in their local area.
The 2007 Awards process opened for submissions on Monday 2 April - and will close on Friday 11 May.
A council can enter a completed or on-going project in any of 15 Award categories in four broad areas: Capacity Building, Community Services, Environment and Management Practices.
For more details of the categories, go to www.dotars.gov.au/local/awards - and click on '2007 Categories'. Entering a project is easy - go to the same website and click on the entry form.
Small councils (under 15 000 ratepayers) are only judged against other small councils not large councils.
If you have any questions or want more information either freecall 1 800 065 113 or email awards@dotars.gov.au.
Entries close on Friday 11 May 2007.
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