Good news for local government: Ministers give green light to cost shifting agreement
4 August 2005
Federal and state local government ministers and ALGA have today agreed to develop an intergovernmental agreement (IGA) to put an end to cost shifting - a practice that is costing councils between $500m and $1.1bn a year.
Today's meeting of the Local Government and Planning Ministers Council in Melbourne (of which ALGA is a full member) agreed to the development of an IGA between the three spheres of government that will help ensure fair treatment of local government in its financial dealings with its state and federal counterparts.
ALGA President, Cr Paul Bell, praised the ministers, saying the support and cooperation of state and federal governments was critical to the success of the IGA.
"We have today achieved an important milestone," Cr Bell said.
"Cost shifting takes many forms, but essentially involves the transfer of responsibilities to local government without adequate - or any - funding to undertake the relevant tasks.
"A draft IGA will be developed over the next six months and brought back to the next meeting of the ministerial council in March next year.
"ALGA is seeking an agreement that:
- ensures the three spheres of government will work together on who does what;
- establishes some principles that guide decision-making;
- ensures the deals made with local government are adequately funded, and most importantly;
- provides assurance that the deals we reach actually 'stick'.
"I am optimistic this can be achieved over the next few months," Cr Bell said.
Planning issues
Local government, planning ministers and ALGA today also received a report from the Development Assessment Forum which sets out a 'model' process for development assessment.
The ministerial council "acknowledged the work undertaken by the Forum" and agreed each jurisdiction would take up the report findings in a way appropriate to each jurisdiction.
One part of that model offered two options for dealing with controversial development applications. One option has them sent to 'expert panels' the other determined by elected members.
ALGA has strongly opposed efforts by developers to use the model as a way of restricting the role of councillors in the development assessment process.
"While there is much in the model that is worthwhile, local government will not accept any move to restrict the role of democratically elected community representatives in the DA process," Cr Bell said.
"The fact of the matter is that most development applications are dealt with by local government planners, but elected members will step in and make decisions on controversial DAs.
"I'm pleased with the outcome of today's meeting. The controversial aspects of the model have not been endorsed at the national level," Cr Bell said.
- Contact:
- Cr Paul Bell AM, ALGA President - 0418 791 596
- Rohan Greenland, ALGA Public Affairs - 0412 85 9434 / 02 6122 9434
