Home » President’s Comment – Review of local government to improve sustainability of councils

President’s Comment – Review of local government to improve sustainability of councils

In each edition we feature the views of a Local Government Association president. The following is from Councillor Ray Donald, President of the Shires Association of New South Wales.

Regardless of what state you live in, councils provide a varied and lengthy list of services to communities, often on a limited budget. Increasing responsibilities, community expectations, funding restrictions and complicated governance models all add to the growing pressure on local government in New South Wales.

Last August, Mayors and General Managers from 152 councils across the state of NSW met with the Minister for Local Government, the Hon. Don Page MP, at the Destination 2036 Workshop to set priorities on how to improve the health and capabilities of Local Government in NSW.

Of all the issues discussed at Destination 2036, the financial sustainability of councils – metro, regional and rural – was identified as the biggest challenge. NSW councils simply can’t perform to the best of their ability in the current local government landscape. If we want our communities to prosper, reform is required on a number of fronts.

Following an approach from the Local Government and Shires Associations of NSW, Minister Page announced the establishment of an independent Local Government Review Panel to investigate ways to create stronger and better councils in the future. Chaired by Professor Sansom, head of the Australian Centre for Excellence in Local Government, he will be joined on the panel by Jude Munro AO, former CEO of the Brisbane, Adelaide and St Kilda City Councils, and Glen Inglis, former General Manager of Parry Shire and Tamworth Councils.

While the NSW Government and Local Government and Shires Associations of NSW (LGSA) stand firm on their position that no council should be forced to amalgamate with another, the Review Panel offers councils and communities throughout the state a wonderful opportunity to have an open discussion about what needs changing, both financially and in legislative terms, to improve the future viability of councils.

Rate pegging, governance models, resource sharing, and state funding arrangements are just some of the areas that will be looked into by the panel, guided by the terms of reference. It will also look at the ability of councils to deliver services and infrastructure efficiently, effectively and in a timely manner; local representation and decision making; and barriers and incentives to encourage voluntary boundary changes.

It’s been a long time since NSW local government has gone through an independent holistic review, and while change can at times be daunting, ultimately it’s about ensuring all councils have the capacity to meet the needs of their individual communities now and in the future.

This panel investigation is also very timely considering the NSW Government is currently reviewing the Environmental Planning and Assessment Act (NSW) 1979, the NSW Local Government Act, Emergency Services and Waste Levies, and the NSW Transport Master Plan.

I commend the State Government for responding to our approach to set up this panel, their willingness to engage with communities and their acknowledgement that a ‘one-size-fits-all’ approach is not a workable solution for councils. To gain the full picture of local government in NSW, the common issues and differences, the Review Panel will travel around the state consulting extensively with councils and all sectors of the community. They will then present to the Minister and NSW Government the recommendations from this review within 12-14 months.

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