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Cost shifting recommendations

Council Managers call for tripartite commitment to get reforms rolling

Staged in Melbourne from 23–26 May, Local Government Managers Australia (LGMA) 23rd National Congress was opened by Victorian Governor, John Landy. He welcomed some 480 delegates from all States and Territories, as well as representatives from the United States of America, United Kingdom, New Zealand and South Africa.

“Local Government has always played a vital role in Australian society through providing employment, essential services and shaping the identity of local areas,” the Governor said. “Today it must be more sophisticated, handling often difficult and intricate planning matters, environment concerns and complex legal issues.”

He said planning to meet the future needs of an ageing community, and for many rural areas, retaining residents and attracting new people requires councils to be strategic and forward thinking.

“You have the power to shape the sort of towns and neighbourhoods people want to live in,” the Governor told delegates. “Communities need dynamic, vibrant managers to achieve this.”

In his address, the then LGMA National President, Lindsay Delahaunty, said that cost shifting and the recommendations of the Hawker Inquiry continue to be key issues facing the sector. He said that unfunded mandates, alongside councils trying to maintain infrastructure and meet future needs must be addressed.

“Duplication and overlapping demands a rationalisation of roles,” he said. “Direct funding to Local Government and an overhaul for the current grant scheme are just some of the issues that need to be addressed.”

He said that recommendations from the Hawker Inquiry are a start, but since the tabling of the report last November there has been little attempt by the Federal Government to engage the State Ministers. “With the Federal Minister due to meet with State Local Government Ministers on 10 June, LGMA’s National Board is working to be represented there,” Lindsay Delahaunty said.

Federal Minister for Local Government Roads and Territories, Senator Ian Campbell, addressed the congress via video link as Federal Parliament commenced its post Budget sitting that day. The Minister told delegates that with hundreds of years of Local Government experience and wisdom between them, he is grateful for the support he has received in his first six months in the portfolio. The Senator said that he expects to release a response to the recommendations of the Hawker Report in the next few months.

Turning to the extensions of the Roads to Recovery Program for a further five years, he said that this had proved the effectiveness of the Federal Government funding Local Government directly. “I hope to be able to extend this one to one relationship to other programs,” Senator Campbell said. During the congress session on cost shifting David Spokes, representing the National CEOs Group, said that the Hawker Inquiry left no doubt that there is a problem, but the onus is on Local Government to ensure that the other spheres will respond adequately to it. He said it must be a tripartite approach with all spheres having responsibilities to get it right.

“The Commonwealth must forego its desire for reforms to be cost neutral to it, the States need to tackle cost shifting head on and Local Government must be fully accountable for any extra revenue it wins,” David Spokes said. “There must be incentives for the States to address cost shifting onto Local Government. With the Hawker Inquiry identifying potential savings of $20 billion through rationalisation of roles and reduced duplication, the financial incentives are clearly there and ready to be shared.”

Paul Arnold, General Manager at Burnie City Council was sworn in as LGMA National President at the conclusion of the congress.

Fremantle takes out 2004 Management Challenge

The City of Fremantle has won the Australasian Local Government Management Challenge, ahead of a strong field of contenders including each State winner and United Kingdom and New Zealand winners. The winning team, known as Dr Mocha – a reference to the Fremantle Doctor sea breeze and the City’s famed cappuccino strip – won the right to represent Western Australia last March.

This year’s other finalists were Fairfield City Council (NSW), Thuringowa City Council (Qld), Burnie City Council (Tas), Adelaide City Council (SA), the Shire of Yarra Ranges (Vic), Dunedin City (New Zealand) and East Sussex County Council (UK).

The challenge is a unique management development program conducted annually.

“It was certainly an amazing experience,” said Fremantle’s Team Leader, Kylie Telfer. “We have learned to develop as individuals and a team, plus been able to network with other organisations. It clearly proves none of us is as good as all of us.”

The City of Fremantle won the 2004 Australasian Local Government Management Challenge, ahead of a strong field of contenders including each State winner and United Kingdom and New Zealand winners. Team members left to right (back) Ian Goodbody, Andrew Thomas, David Stewart, (front) Helen Whitbread, Kylie Telfer, Denise Ford and Julie Caddy.

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