LGMA pursues capacity building

With the theme, ‘The world is local: Local Government no boundaries’, this year Local Government Managers Australia (LGMA) contributed $20,000 to carbon offset programs as a result of greenhouse gases produced through the staging of
its Congress and Business Expo at the Gold Coast from 25 to 28 May.

Delegates from councils across Australia were joined by a number of international Local Government managers. The Congress included the Australian Management Challenge final, and an International Management Symposium was staged over two days immediately following the main program.

“At last year’s Congress I said that there were a number of initiatives LGMA needed to implement and, if we did, we would cement ourselves as a credible identity within the Local Government sector,” said Steve McGrath, then National President. “I indicated that LGMA’s future was in being known as Local Government sector ‘Capacity Builders’.

“The National Skills Shortage Strategy for Local Government was launched at the Hobart Congress last year. This includes establishing a Local Government Centre for Excellence, developing new ways of working, providing a range of training and professional development projects, attracting new workers and helping councils to become employers of choice.”

He said that LGMA participated in the Productivity Commission’s recent Inquiry into Local Government’s Revenue Raising Capacity, but has pursued a wider nation building approach by setting up a sustainability working party to develop a futuristic strategy for Local Government funding through to the year 2050.

A National Forum for Funding Local Government to 2050 was conducted during the Congress to look at what the financial and fiscal systems could look like and to start formulating a strategy.

“Five years on from the Hawker Fair Share report, do we believe that Local Government has a fair share?” Steve McGrath asked. “Working in Local Government, we know that generally we are struggling to deal with the infrastructure maintenance gap that exists right across Australia. We know that cost shifting continues to be an impost on our businesses and ultimately our communities. We know that our communities demand so much more from Local Government in the way of services and facilities. We know that the regulatory regime within which we operate has added significant costs to how we go about our business. And there are many more contributing factors that have added to the expense side of our ledgers.

“The question remains, has our access to revenue streams kept up with the cost imposts that are both imposed on, and expected of, Local Government?

“I think we know the answer to this question.”

Chair of LGMA’s Financial Sustainability Working Group, Marianne Di Giallonardo, told participants at the national funding forum that the Productivity Commission’s terms of reference were much narrower than the Hawker Fair Share Report’s original recommendation for such an inquiry. She said the Productivity Commission’s final report released in April provides a fairly accurate description of Local Government funding and revenue raising around the nation.

“The combination of data sets and interpretations provide a good starting point,” she said. “In addition, there are the various sustainability studies that have been undertaken in recent years by State Local Government Associations and
the Australian Local Government Association.”

She said that the Productivity Commission’s report does not provide any recommendations.

“It does not go outside the square and consider issues such as service standards, climate change implications, demographic changes and community expectations,” Marianne Di Giallonardo said. “Other vital aspects not considered include the Intergovernmental Agreement, the infrastructure backlog councils face or options for a direct share of taxation for councils. These issues are vital and must be considered in developing a strategy for funding Local Government through to the year 2050.”

The handover of the National Presidency of LGMA occurred at the conclusion of the Congress with Ray Pincome, CEO of the City of Unley in South Australia, taking over from Steve McGrath.