The election of the Howard Government in Australia on 2 March 1996 is only the fifth change of national government in Australia since the Second World War. I was delighted to be given responsibility for the Local Government portfolio by Prime Minister Howard.
The change of national government provides tremendous opportunities for Australia. I believe that Local Government is well positioned to take advantage of such opportunities to improve the quality of life of its local residents.
The Government appreciates the important role that Local Government currently plays in achieving national priorities. The national interest is best served if services are provided in the most efficient and effective manner possible. The application, through the States, of National Competition Policy Principles to Local Government, together with adoption of benchmarking, development of performance indicators and a culture of continuous improvement are integral to ensuring efficient service delivery.
Greater efficiencies should also flow from appropriate amalgamations of Councils. Amalgamations may be voluntary or forced as they have been in Victoria. Evidence appears to be that amalgamations have resulted in significant efficiency gains, with reductions in rates of 20-30%. It is expected that these gains will be ongoing, with real benefits for all Victorians.
There is considerable scope for improved efficiency at all levels of government through the implementation of regulatory reform. The Commonwealth Government is very committed to minimising the administrative hurdles facing small business. It believes Local Government can play a very important role in this regard, particularly in relation to such matters as planning and building regulations, health inspection services and the level of rates and charges.
I am also aware that Local Government has specific objectives that it wishes to pursue with the Commonwealth Government. I am keen to ensure that Local Government has adequate opportunity to negotiate these objectives and that it is represented on major policy forums in which it has an interest.
Consultation with key Local Government bodies at the national and state levels is essential and I have already held valuable discussions with the Australian Local Government Association and others. These discussions have highlighted that arrangements for Commonwealth financial assistance to Local Government and the aim of Local Government to achieve constitutional recognition are two of the long standing issues that need further negotiation and resolution.
The Government intends to meet our election commitment to maintain the level of Commonwealth funding to Local Government in real terms. We are also committed to placing the issue of constitutional recognition of Local Government on the agenda for the proposed ‘Peoples Convention’ to be held in 1997.
To facilitate a sound and effective partnership with Local Government, I will be supporting the development of a Memorandum of Understanding (MOU) between the Commonwealth and Local Government. The negotiation of an MOU will enable both spheres of government to discuss priority issues and clearly establish a mutually beneficial working relationship. It is my aim, and that of the Australian Local Government Association, that the MOU be signed at the 1996 National General Assembly of Australian Local Government to be held in December of this year.
The linking of sport and Local Government in my portfolio provides great opportunity. Local Government spends more than $1 billion dollars per year on the provision of sport and recreation programs and facilities. Through better utilisation of facilities and improving links between sporting organisations, school sports programs and Local Government, the whole community can benefit.
I look forward to playing an active role in progressing these and other issues in partnership with Local Government. Such a relationship is essential to the maximisation of the welfare of local communities and Australia’s overall economic and social performance.
Warwick Smith MP
