Diverse challenges for CEOs

Rolf Gerritsen, Professor of Local Government and Applied Policy at the University of Canberra, has recently participated in an international study of Local Government Chief Executive Officers.

He said that the diversity in the role of Australian CEOs is partly due to the fact that we have eight separate Local Government systems, thanks to our Federal System, plus two streams in the Northern Territory catering for Municipal and Community Government Councils. However, Professor Gerritsen believes a stronger factor is the bimodal culture difference between the rural and urban CEO.

In rural areas, almost twice the proportion of total resources is earmarked for physical infrastructure. Council is less involved in planning and building issues, while fire protection and running an aerodrome are more likely.

Adversely affected by a reduction in private sector activities alongside reduced government services, the rural CEO often faces ‘dieback’, as the multiplier effect of job losses bites. Entrenched unemployment and the loss of government services can result in the Council being one of the few institutions left in rural areas. Hand in hand with this, is an increase in law and order problems, and the urgent need to devise strategies to address these.

In urban areas, the CEO’s major concern is handling the ‘politics of amenity’. Planning issues are paramount, as the community seeks to protect its heritage, social and natural amenities. Here, economic futures are more assured with a much higher level of consumption

Professor Gerritsen believes that contracting out, amalgamations and the like, are short term, quick fixes. CEOs and their Councils must move to a second wave involving strategic thinking and more innovative ways to find resources, such as regional approaches via Voluntary Regional Organisation of Councils (VROCs) or similar cooperation.

“Long term issues for communities must be addressed,” he said. “Sorting out intergovernmental relations and reversing the trend of Local Government’s steadily reducing economic base are key issues.”