It’s been a year of impending change for the NSW Local Government sector with a series of major reviews and reforms underway since mid-2012, which will potentially impact nearly every aspect of council operations. The most significant of these is the Local Government Review conducted by an independent panel. But with no tangible outcomes as yet, councils continue to lobby and consult with the NSW Government on behalf of their communities on a broad range of issues.
In the midst of this unprecedented ‘year of review’, the former Local Government Association of NSW and Shires Association of NSW merged on March 1 to become a single, united organisation representing the views and advocating on behalf of all 152 councils across NSW, with our first full conference held in October 2013.
Given these two associations had been operating separately for more than a century in the interests of rural and urban councils, their unification was a long time coming and will undoubtedly strengthen our association’s ability to effectively lobby both the NSW and Australian Governments on issues important to NSW councils.
Now known as Local Government NSW (LGNSW), our new association has had to find its feet and consolidate policy positions during a period of considerable change and a great deal of uncertainty. I was delighted to be elected the first Local Government NSW President in October, alongside a new Board of 24 members representing councils all across NSW.
One of the biggest issues on our agenda for 2013 and beyond is the Independent Local Government Review Panel. This Review Panel was commissioned in July 2012 to undertake a holistic review of the NSW Local Government sector, specifically looking at solutions to improve NSW councils’ financial sustainability, governance models and decision-making capabilities, and how to better deliver services and infrastructure efficiently and effectively.
To the Review Panel’s credit, they have consulted extensively with councils, communities and other stakeholders across the state, delivering three detailed discussion papers. The third discussion paper entitled Future Directions – 20 Essential Steps has, however, attracted much criticism from councils, particularly regarding the proposal for mass amalgamations and the creation of ‘new look’ county councils throughout large areas of the state.
Whilst the NSW Government maintains its position that they will not force councils to amalgamate, the Review Panel’s focus and highly specific recommendations on which councils should merge with one another has left a cloud hanging over the heads of many councils.
Despite this, there are many good suggestions in the Future Directions discussion paper, including streamlining rate pegging and removing archaic and inequitable rate exemptions currently subsidised by ratepayers, and establishing a NSW Local Government Financing Agency in a similar vein as the successful model currently used in South Australia.
It’s unfortunate the issue of amalgamations has detracted attention from these and other positive ideas offered by the Review Panel, but whether councils agree or disagree with the Review Panel’s views, it’s evident that hard decisions need to be made and changes within our industry need to occur in the coming years.
Councils now await the public release of the Independent Local Government Review Panel’s final report and recommendations, which at the time of writing this message has been with the NSW Government for several weeks but has not been disclosed as yet. Given the open and public process of this review to date, councils are eager to view the final report.
But as the last sitting day for the NSW Parliament was 28 November, it’s unlikely the State Government will make any hard and fast decisions on Local Government reform until 2014. And with only a year left before the next state election, all eyes will be on the NSW Government and exactly which of the Independent Review Panel’s raft of recommendations they support and how they choose to implement them.
Certainly, interesting times ahead for Local Government in NSW.
