A panel of speakers representing Local Government, the private sector and academia spoke on the issue of competition as it relates to Community Services provision.
Greg Hallam, Executive Director of the Queensland Local Government Association, aimed in his speech to put in context the debate about the Hilmer Report and National Competition Policy, to challenge some of the myths surrounding it and focus on the realities and challenges it presents.
“Opening Australia up to the machinations of the global economy has created a competitive environment,” he said. “However, we must focus on issues of sustainable development and social justice for anything worthwhile to be achieved from this. Much of the discussion to date has really been ideology dressed up as science.”
He said that while productivity gains in Australian industry have been as high as 50 percent in some instances there is little evidence that the fruits of this have been adequately shared. Measures of GDP to date have been largely inadequate in assessing the actual quality of life people enjoy.
Under the circumstances in which the principles of National Competition Policy were drawn up in 1994, he noted that Local Government was largely a ‘bit’ player, yet much of the reforms impact on Councils more than the other spheres of government.
Changes Local Government must undergo will see services delivered without tax advantages, restrictions on the use of powers to curb competitors, minimisation of unnecessary restrictions in local laws and providing competitors with access to complementary infrastructure and facilities. In addition, restrictions under the Trade practices Act now apply to Local Government.
While there are undoubted benefits to be realised for ratepayers in all this, Greg Hallam is concerned that in the rush to corporatise and commercialise, many Council functions could be compromised where such principles are inappropriate. He cited as an example of absurdity in privatisation the contracting out of rates collection services.
“There is a need to subject such issues to a public benefits test,” Greg Hallam said. “Community and social obligations must be factored into the equation.”
The model where the public sector is a monitor rather than a provider fails to recognise the broader role of Local Government.
Notwithstanding this, he said that while the benefits may be overstated there are benefits to be had. There is a need to look at quality of service and define social outcomes in quantifiable ways.
“National Competition Policy is not going to be the answer for all issues,” he said. “The UK experience has shown that casualties will occur but the best way to tackle the issue is collegiately.”
