Many organisations appear to have their view fixed on the rear view mirror and they allocate resources on the basis of past patterns, rather than looking to the future, according to consultant, Jeff Roorda, who addressed the Municipal Association of Victoria’s recent national Asset Management conference.
Jeff Roorda has worked in asset and facilities management for more then 20 years and works with Councils, State and Commonwealth Governments. He said the present events were being influenced by events as diverse as the industrial revolution and, more recently, the baby boom demographics.
“Infrastructure management requires a long term vision and it is unlikely that the next 20 to 30 years will be the same as the past,” he said. “Environmental influences, changing demographics, social and cultural factors could make continuation of past growth unlikely. Our current taxation and funding models across the whole of government, especially Local Government land tax, are based on the past. Higher levels of accountability between levels of government for service delivery for asset management is now expected. Commonwealth, Local and State Governments must improve levels of assets management and accounting.”
Jeff Roorda identified several major phases of growth in Australia’s history from penal colony, opening the interior, the industrial revolution, and the baby boom. He argues we now face a plethora of challenges such as an ageing population, rural decline, bigger cities, scarce water, environmental damage and skills shortages.
The long periods of growth have meant a huge amount of infrastructure is now in place, built during the “boom years” and now needs major repairs essentially from Local Governments who get funds from an antiquated land tax.
Jeff Roorda said the Hawker Enquiry had recognised that Local Government has taken on huge costs, but the nature of Local Government revenues have remained largely unchanged. He called on a creative management effort from all levels of government working in partnership with the private sector to begin to deal with the problem.
