The Local Government Minister’s Conference decided that as part of a Benchmarking and Efficiency Program national performance indicators would be developed for Local Government.
National indicators would provide Councils with performance information, beyond State/Territory boundaries, to compare their own performance, identify areas where their performance might be improved and identify appropriate benchmarking partners.
National performance indicators and the associated performance information would also provide the Commonwealth Minister for Local Government with the information needed to fulfil his obligations under the Local Government (Financial Assistance) Act 1995 to report to the Parliament annually on the performance of Local Government.
Despite a joint effort by Commonwealth, State and Local Government officials in 1996 to develop national performance indicators, it was apparent by the end of the year that little progress was being made.
As a result, it was agreed that the Industry Commission be asked to review the feasibility and value of national performance indicators.
The Treasurer agreed in 1997 that the Industry Commission undertake the task. The Commission’s brief is to:
“…..consider and advise:
- Whether national performance indicators could be defined.
- to provide a tool which would assist Local Government with benchmarking and continuous improvement programs; and/or
- to provide a tool to assist the Commonwealth Minister to meet his statutory reporting obligations under the Local Government (Financial Assistance) Act 1995.
- If national indicators can be defined to meet the objectives under either or both (i) and (ii) above, the value of producing and publishing such indicators, and the service areas for which indicators might be developed.
- If there is demonstrable value in producing national indicators, how the development of such indicators could proceed to ensure meaningful results.
- If national indicators cannot be defined, suggest an alternative mechanism for reporting nationally on Local Government performance.”
The review began in earnest in May 1997 and is expected to be completed by the end of August. The Commission is undertaking an extensive round of consultation as part of the review. This includes visits with Local and State Governments and Local Government Associations, a round table discussion with key stakeholders and an invitation to any one with an interest in Local Government performance to make a written submission.
Commonwealth, State and Local Government representatives will also have the opportunity to comment on a draft report in August. The outcome of the review will have an important bearing on the future of performance measurement in Local Government.
Copies of the report, Review of National Performance Indicators in Local Government will be available to the public in early September.
