In each edition we feature the views of a Local Government Association President. The following is from Councillor Paul Bell, President of the Local Government Association of Queensland.
As Queensland’s 125 Local Governments and 33 indigenous Community Councils pass the halfway mark in their four year term of office the State’s Local Government sector is on the cusp of generational change, self driven change.
While the Size, Shape and Sustainability (SSS) agenda is progressing very well with some 22 groups of 96 Councils having joined the review process, equally significant and complementary developments are occurring on infrastructure procurement and delivery and shared services operations. Within a two to three year period our sphere of government will be significantly transformed, by our own hand.
The SSS process sees Councils voluntarily considering regional arrangements, shared services, boundary change and amalgamation under the guidance of an independent review facilitator. As part of the review all aspects of an individual council’s viability go under the microscope.
The LGAQ initiated the SSS process in mid 2005 and to our absolute credit the State Government has contributed $25m to support the various reviews and fund implementation measures, should they proceed. A steering committee comprising representatives from the Department of Local Government, Planning, Sport and Recreation, Local Government Managers Australia, Queensland Treasury Corporation, an independent academic in the person of the Pro-Vice Chancellor of the University of Southern Queensland and the LGAQ oversee the SSS process.
To support SSS, LGAQ has created two new joint venture companies, LG Infrastructure Services Corporation and LG Shared Services, to ensure that real viable services alternatives to amalgamation do exist, not walking away from voluntary amalgamations where they make sense. LG Infrastructure Services Corporation is jointly owned with the Queensland Treasury Corporation and is unique in Australia. In just short of a year, the organisation, modelled on the 4 Ps in the UK (see www.4ps.co.uk), has taken on $1.35b worth of Council infrastructure advisory and delivery projects. It offers the following services:
- evaluating projects
- establishing projects
- financing projects
- delivering projects
- monitoring and reviewing projects, and
- renegotiating and restructuring projects (over the long term).
LG Infrastructure Services endeavours to achieve reduced costs, increased negotiating and purchasing power, and greater efficiencies for Local Governments by providing a comprehensive range of project support services at each of the project stages listed above, such as:
- reviewing infrastructure procurement plans and strategies
- undertaking risk assessments
- managing advisors and other skilled professionals
- arranging funding structures and repayment arrangements
- assisting in discussions with administering departments
- helping Local Governments to work collectively to achieve better outcomes
- providing advice.
Over the next few years LG Infrastructure Services focus will increasingly turn to broader scale State and regional infrastructure procurement and delivery, especially on waste, water, sewage and roads.
LG Shared Services is a 50/50 joint venture between LGAQ and United Customer Management Services (UCMS), who were chosen as LGAQ Shared Services partner after expressions of interest were sent to all of the world’s leading shared services operators. UCMS have an exclusive relationship with the Capita Group of the UK for access to the business systems and technology it employs in British Local Government.
Dual studies by KPMG and KM Consulting for the Association during 2005 identified major potential savings arising from the adaptation of shared services across the Queensland Local Government sector. That work is the cornerstone on which LG Shared Services turns.
Immediate business planning is occurring around payroll, call centres and development application (DA) processing, other back office and regulatory services will be considered the following year. Rollout by LG Shared Services of these offerings will occur beginning later in 2006.
Very importantly, LG Infrastructure Services and LG Shared Services give Queensland Councils the ability to achieve economies of scope ‘virtually’ beyond their physical boundaries. They are fundamental to the new emerging landscape of preserving local governance while scaling upon infrastructure and service delivery. Best of all, it’s Councils not another level of government that are determining our future.
