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8 May 2009

ACLG meeting to follow National General Assembly

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The second Australian Council of Local Government (ACLG) plenary meeting, hosted by Infrastructure, Transport, Regional Development and Local Government Minister Anthony Albanese will be held on 25 June 2009 at Parliament House, Canberra. Further details regarding this meeting will be posted to the website www.aclg.gov.au as they become available. The Deputy Chair of the ACLG is ALGA President Cr Geoff Lake.

The ACLG held its Inaugural Meeting on 18 November 2008 where over 400 mayors and shire presidents from councils and shires across Australia and representatives from state and territory governments met at Parliament House, Canberra. Its purpose is to forge a new cooperative engagement between the Australian and local governments giving a voice to local government on matters of national significance. It is vital that all councils take the opportunity to attend and discuss local government's national priorities at the National General Assembly (NGA) in the lead up to the ACLG meeting.

For the past 15 years, the NGA has been critically important in driving the local government agenda at the national level. The event brings together more than 700 local government mayors, councillors and CEOs from across Australia. The theme of this year's Assembly - Rising to the Challenge - Infrastructure, Climate Change and Financing - will offer a valuable opportunity for councils to explore and develop a national approach across these key areas.

ALGA has received 139 Notices of Motions, which clearly demonstrates a high level of interest in the Assembly. This year, building on feedback received from previous NGAs and the success of the Constitutional Summit in Melbourne, motions will be grouped into 'composite motions' with the intention that these be discussed and debated as a single motion. This will assist in facilitating efficient and effective debate.

This year we will continue the concept from the Constitutional Summit by having informal delegate discussions prior to entering formal debate. ALGA has secured a number of experts to assist with these delegate discussions which will be facilitated by journalist George Negus.

Early bird registration closes Monday 11 May so register now at http://nga.alga.asn.au to save $200.

Carbon Pollution Reduction Scheme

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ALGA President Cr Geoff Lake said this week that the one-year delay by the Federal Government of the start of the Carbon Pollution Reduction Scheme would provide more opportunity to address issues such as waste.

Last month ALGA put in a submission to the Federal Government on the impact of the scheme on local government and communities raising concerns. The primary concerns for local government relate to how the CPRS proposes to deal with waste facilities and in particular:

  • the measurement of emissions arising from waste;
  • the inclusion in the scheme of past waste, or 'legacy waste', that is emissions generated from waste deposited prior to 1 July 2008; and
  • the proposed reduction in the size of waste facilities which are captured in the scheme.

The Prime Minister Kevin Rudd said this week that the delay until 2011 would help Australian companies manage the impacts of the global recession.

He announced:

  • A one year fixed price phase will apply between 1 July 2011 and 30 June 2012. During the fixed price phase, each carbon pollution permit will cost $10. From 1 July 2012, businesses covered by the scheme will need to purchase permits at the prevailing market price.
  • A new Global Recession Buffer will be provided as part of the assistance package for emissions-intensive trade-exposed industries.
  • Eligible businesses will receive funding to undertake energy efficiency measures in 2009-10 as part of a $200 million tranche of the Climate Change Action Fund.

Prime Minister Rudd also committed to reduce Australia?s carbon pollution by 25 per cent below 2000 levels by 2020 if the world agrees to an ambitious global deal to stabilise levels of CO2 equivalent at 450 parts per million or lower by mid century. More details are found here.

Women on the verge of recession

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The Federal Sex Discrimination Commissioner, Elizabeth Broderick, has called on the Federal Government to introduce a national Paid Parental Leave scheme in the Budget as an economic stimulatory measure and to utilise the talents of women of child-bearing age. "There is a strong empirical link between Paid Parental Leave and women's - particularly mothers' - workforce participation," Ms Broderick said in a recent speech at the National Press Club.

"...I am not saying that paid parental leave will be the panacea to solve the economic crisis. What I am saying is that it is an essential plank that will form the foundation of the workplace transformation necessary to take us into the future."

The Productivity Commission has proposed 18 weeks paid maternity leave and two weeks paid supporting parent leave. Australia is the only OECD nation without any legislated paid parental leave scheme.

Ms Broderick said that 'the perfect storm of demographic change and the economic downturn' provided the perfect opportunity to reinvent paid work and care for the benefit of all families, men and women, for businesses and for the economy.

In her speech, Ms Broderick mentioned the recent Global Gender Gap report released by the World Economic Forum which shows that Australia sits in the group of countries that are number 1 on women's educational attainment but depressingly, we are number 40 on women's workforce participation. Women hold a tiny percentage of board Directorships and only four Chief Executive Officer positions in ASX200 Companies. The most disturbing figure, is that only 5.9% of senior line managers are female, a significant reduction from two years earlier. "Let's be clear - there is a serious leakage of female talent in this country. Without significant intervention - by government, by business - the number of women progressing in the workplace will shrink even more."

Ms Broderick said that while Paid Parental Leave and high quality flexible work were at the heart of gender equality 'in 2009 we must start to explore new solutions.' She proposed increasing the number of women on boards, organisations setting target, regularly measuring progress against those targets, and shareholder engagement where CEOs are quizzed on their gender equality measures.

From the President

This is the last edition of ALGA News before the Federal Treasurer, Wayne Swan, delivers the 2009-10 federal budget. On Tuesday next week, we will learn more about the extent of the global downturn on the Australian economy and perhaps more importantly, how long it might be before we experience economic recovery.

It is clear this will be a very difficult budget. Some say the toughest in living memory. On the one hand, the Australian Government recognises how critical it is to support the delivery of services Australians need to weather the financial storm. On the other hand, a significant reduction in tax revenues will impact on its capacity to provide this support.

We have been told in recent days that everyone will be asked to make some sacrifices in this budget - a very different scenario from this time last year when the budget delivered a large surplus (almost $22 billion) and the outlook was very positive. How quickly things can change.

Local government understands that the current uncertainties in the global and Australian economies, of which we are reminded about almost every time we turn on the television, will limit the Government's ability to respond to our funding priorities. We do not underestimate the challenge they face - the economy is now in recession and the budget will be in deficit for a number of years to come. This will undoubtedly place pressures on the nation building programs announced in the last budget, such as the Building Australia Fund.

It is in times like these that it makes sense for the Australian Government to further support economic activity and jobs, whilst also laying the foundations for a stronger Australia to take full advantage of the economic recovery when it arrives. That is why in our budget submission ALGA has urged the Australian Government to establish the foundations for a more secure economic and social future for Australia. We have advocated for expanded investment in short-term stimulus programs to enhance productivity growth, reforms to increase the productive capacity of Australia and investment in greater social equity and community programs to ensure those suffering disadvantage are not left behind.

ALGA will closely examine how the Australian Government responds to these priorities on Tuesday night and the implications contained in the budget for local government. In particular, we will be looking for further funding and consolidation of the Regional and Local Community Infrastructure Fund. The $800 million announced by the Government as part of the national stimulus packages will expire on 30 June 2009 and given the community infrastructure pressures faced by councils, this program deserves to become a recurrent spending program similar to the Roads to Recovery program. Another key item of interest for local government is renewal of the Natural Disaster Mitigation Program which expires at the end of this financial year. The benefits it has delivered in instigating preventative measures such as building levies have been highlighted during the recent floods and bushfires in Queensland and Victoria.

We in local government know that there are many more regional and local community infrastructure projects that communities need and which can make a real and lasting difference to the lives of all Australians. Let's hope the Australian Government also sees this value and includes it in the budget.

Cr Geoff Lake
ALGA President

Asset management plans

NAMS.PLUS is currently used by 200 councils across Australia as a nationally consistent approach to writing asset management plans.

The Institute of Public Works Engineering Australia (IPWEA) is delivering another round of the NAMS.PLUS AM program. The NAMS.PLUS program provides a comprehensive step by step guide on asset management, supported by a series of intensive one-day workshops, to help council staff develop asset management plans based on a core or advanced approach.

The workshops provide councils with the necessary tools and guidance to write their own asset management plans. It provides templates and guidelines in a comprehensive eBook, online modelling, a help desk forum and regular newsletters. The NAMS.PLUS program will benefit asset managers, finance managers, engineers, and other managers and directors.

Block 1 dates are set to commence shortly. To find out more about the NAMS.PLUS program, visit www.ipwea.org.au/namsplus.

New qualification

IPWEA has also sponsored the development of a new Graduate qualification in Infrastructure Asset Management.

The Graduate Certificate in Infrastructure Asset Management will be offered and awarded through the University of Tasmania by distance education. Enrolments have opened for commencement from June this year.

The new course responds to the need for a program for engineering and science graduates employed in local government in the emerging discipline of Infrastructure Asset Management.

The four unit course consists of two core compulsory units and two units selected from a list of elective units.

Further information click here.

Help koalas, recycle phones

Australians can assist thousands of native animals through Koaladoors Inc Koaladoors Project by supporting MobileMuster and Landcare Australia's 'Old Phones, More Trees' campaign and simply recycle their old mobile phones at mobile phone retailers and selected businesses and local councils, during the month of May and until World Environment Day - June 5.

MobileMuster, the official recycling program of the mobile phone industry and Landcare Australia launched the 2009 'Old Phones, More Trees' campaign recently, with MobileMuster ambassador and former Miss Australia, Laura Dundovic, at the Powerhouse Museum in Sydney.

The 'Old Phones, More Trees' campaign, now in its third year, is a joint initiative, where native trees are planted for all mobile phones handed in for recycling throughout May and until World Environment Day.

This year, MobileMuster and Landcare Australia have chosen to support Koaladoors Inc Koaladoors Project, as one of two projects, and plant native trees in the Framlingham Forest, which was affected by severe bush fires in January 2006.

MobileMuster can recover over 90% of the metals and plastic found in mobile phones and reuse to make new products such as jewellery, plastic fence posts and stainless steal products such as saucepans.

To find your nearest MobileMuster drop off point or to download a free mailing label click here or call 1300 730 070. To find out more about Landcare Australia visit the website.

Vic budget planning

The Municipal Association of Victoria (MAV) has welcomed the Victorian Budget's commitment to key infrastructure programs to enhance liveability, stimulate local economies and boost jobs across the state.

Cr Bill McArthur, MAV President, said this year's Budget had limited new money for local government but it struck a balance between spending on infrastructure and social services to improve the capacity of communities to withstand the Global Financial Crisis.

"Local government welcomes the $2 billion commitment over the next four years to expand the capacity of Victoria's train, tram, bus and cycling networks," he said. "Prioritising much needed sustainable forms of transport will create jobs, alleviate road and public transport congestion, reduce greenhouse gas emissions and offer communities significantly improved transport options.

"Community resilience would be boosted with funding for bushfire support services, $85.5 million for a range of social safety net initiatives, a new $9.3 million volunteer strategy, $20 million for sports facilities, and significant reforms to mental health services."

The MAV's 2009-10 State Budget submission also advocated funding for planning reforms that could help facilitate timely building developments to stimulate the economy.

"It's great to see $10.4 million to implement an innovative new e-planning online application system, as well as funding for the Creating Better Places program, which were both requested by the MAV," Cr McArthur said. "Local government is committed to its role in delivering timely and good quality planning decisions. The MAV calls on the Government to ensure the $3.2 million allocated to the DPCD Development Facilitation Unit is used in a productive partnership way. To date, there has been very little engagement with councils."

Smooth start to smoking bans

Smoking bans at all ACT Health facilities came into force on Friday.

At Canberra Hospital, new designated outdoor smoking areas were cordoned off with padlocks and chains, and private security guards patrolled the area to ensure the message was received. An ACT Health spokeswoman said there had been no problems with the introduction of the bans. The spokeswoman said former smoker haunts had already become "rather pleasant outdoor eating areas."

Bushfire funding

Allocations to the States and Territories through the Bushfire Mitigation Program have been announced for the 2008-09 financial year. The Bushfire Mitigation Program is a cooperative program with funding from Local, State, Territory and Commonwealth governments. It is administered by the Attorney-General's Department and aims to assist communities to better prepare for, respond to and withstand the effects of bushfires. More information on successful 2008-09 projects can be found on the Emergency Management Australia website

Election transparency

Greater transparency in WA council elections is a step closer today following legislation to return to the first-past-the-post voting system passed by the Legislative Assembly this week. WA Local Government Association President Cr Bill Mitchell has applauded Local Government Minister John Castrilli for championing the change from the proportional preferential voting system (PPV).

First-past-the-post is considered to be more transparent and less able to be manipulated by big political parties than the more complex PPV.

"The decision to abandon proportional preferential voting and return to first-past-the-post elections is a victory for the persistence of the Local Government sector and a victory for common sense," Cr Mitchell said.

"Under the first-past-the-post system candidates need only to win the support of their local community whereas under the PPV system there is a greater focus on running mates and back room deals that mostly suit the organised, larger political parties."

The new system should be in place for the next council elections in October this year. Cr Mitchell said he hoped the common sense being demonstrated in the return to first-past-the-post would extend to changes to the WA Electoral Commission monopoly on postal voting to open the system to competition, including allowing local governments to manage the process.

Bike fund now open

The Australian Government is seeking proposals for the National Bike Path Program. The Government has set aside $40 million over one year for the construction of bike paths under the Local Jobs stream of the $650 million Jobs Fund. This Fund is a $650 million Australian Government initiative to support and create jobs and increase skills through innovative projects that build community infrastructure and increase social capital in local communities across the country.

Local, state and territory governments and non-profit organisations are eligible to apply for bike path funding. Bike path funding may be provided for new, extensions or refurbishment of existing:

  • off-road bike paths (but not dedicated mountain bike trails);
  • on-road bike lanes (e.g. road-widening and marking bike lanes on an existing road); and
  • bicycle parking facilities.

For bike path project proposals, proponents need to demonstrate how the project will create local jobs and provide alternative transport options. A joint funding contribution of 50 percent will be expected. A first round of applications for the Jobs Fund closes at 4.30pm AEST on 22 May 2009. Details are found here.

Henry Tax Review

Last week, ALGA lodged a further submission to the review of Australia's Future Taxation System. The submission responded to the review's consultation paper (December 2008). ALGA draws upon its previous submission to the review to reiterate the important role of local government in Australia's taxation system and the federation more broadly.

ALGA believes that overall, the consultation paper is well targeted and picks up on a number of issues of significance to local government following ALGA's earlier submission. However, ALGA expresses disappointment that the review considers 'matters relating to the roles of different levels of government, the quantum of intergovernmental transfers and horizontal equalisation' are outside its Terms of Reference. ALGA's submission highlights why the review remains an excellent opportunity to consider the quantum of Financial Assistance Grants (FAGs) to local government and its ongoing capacity to deliver infrastructure and services at the local level.

FAGs remain an important issue for local government and will be discussed as a key theme at this year's National General Assembly. The consultation paper can be accessed here.

Swag of infrastructure projects

Infrastructure Minister Anthony Albanese and Parliamentary Secretary Gary Gray have announced a swag of projects this week under the Federal Government?s $800 million Community Infrastructure Program.

More than 30 projects are detailed at www.minister.infrastructure.gov.au. They include $3.2 million for the Yeppoon Town Hall redevelopment, $2.7 million to help upgrade Waterworld in Adelaide, $2.23 million to help revitalise Albion Park town centre in the Illawarra, $2.9 million to help build Wollongong Cliff Road Promenade, $2 million to commence New South Perth Library and Community Centre and $3.75 million to help redevelop the Flying Fruit Fly Circus building in Albury.

Parliamentary Committee reports

Report 1 - Carers

A federal parliamentary committee has recommended immediate financial relief to carers in its report Who Cares...? Report on the inquiry into better support for carers, yet stopped short of saying how much extras money carers should receive.

The year-long inquiry, which received over 1300 submissions, heard that carers and their families were under serious financial stress, struggling to meet the everyday costs of living, including food, housing and transport.

Committee Chair Annette Ellis (Member for Canberra) said that "with so many carers indicating that they are in crisis, urgent action is needed". Using the words of one carer, she described the support system for carers as a dog's breakfast. "The current array of support systems is too complex. All three tiers of government are involved. Services cross several portfolios and are delivered through hundreds of government and non-government organizations," she said. There needs to be better coordination of services, which are nationally consistent and delivered through a more streamlined process, according to the report's findings.

Report on the inquiry into better support for carers

Report 2 - Residential and aged care

A federal parliamentary inquiry into residential and aged care in Australia has received "overwhelming evidence" of the need to reform the aged care sector in Australia. Peak groups criticised the bandaid measures of the past, saying serious policy solutions need to address the financial basis underpinning the current system, placing it on a sustainable basis with the real cost of care being realised by Government and the community. A pressing need for long-term structural reform, involving all stakeholders, all tiers of government and the community, was repeatedly stressed by witnesses.

The Senate Standing Committee on Finance and Public Administration's report Residential and Community Aged Care in Australia recommends the establishment of a national aged care forum, reporting directly to the Minister for Health and Ageing.

A key recommendation is that the Department of Health and Ageing undertake an "all-encompassing" review of the Aged Care Act 1997 to:

  • examine the provision of residential and community aged care considering both current and future challenges;
  • provide future projections to enable both short and longer-term sectoral planning;
  • address the needs of persons from non-English speaking backgrounds;
  • address the needs of the homeless and other socio-economically disadvantaged people;
  • address the needs of elderly Indigenous Australians;
  • address the needs of aged care services in rural and remote areas;
  • ensure that this review takes a client-based approach; and
  • consider options to enable greater flexibility in relation to payments and services directed at providing a client-centred aged care system.

The committee calls on the Australian Government to expand community care funding and services to meet growing demand.

In all the committee makes 31 recommendations.

Residential and community aged care in Australia

Affordable housing

Federal Housing Minister Tanya Plibersek has announced $10 million towards a proposal by the Ipswich City Council to bring down the cost of new homes in Ipswich.

Ms Plibersek said the funding was offered under the Housing Affordability Fund (HAF), an Australian Government program investing $512 million over five years to reduce planning and infrastructure costs in new housing developments.

"I am pleased to announce the Ipswich City Council project is a winner in the first round of the Housing Affordability Fund," Ms Plibersek said.

"The funding offered for this project will be used to construct sewerage infrastructure to facilitate the development of 2,505 residential lots. These lots are expected to start being released by July 2010.

Each homebuyer will save $10,000 on the cost of the residential lots.

Nationally, the first round of the Housing Affordability Fund is expected to deliver cost savings to up to 14,000 new homes, through the construction of a variety of infrastructure including water pipes, sewerage systems and community facilities.

Many more will benefit via reforms to the planning and development approval processes in local government areas, secured as a condition of funding.

Quote of the week

"But there is one unarguable and melancholy fact of economic life. The higher is the level of Government debt the higher interest rates and taxes must be in order to finance it and repay it." -
Opposition Leader Malcolm Turnbull, speaking at the National Press Club on Wednesday

International news  

An interesting comparison of world leaders' salaries by population (source: News.com). Once you get past highest paid, Lee Hsien Loong of Singapore, who is on S$3.76 million (US$2.47 million), the packages level out in the $US200,000 to $US400,000 range. Though Barack Obama must have a case for a pay rise even in these recessionary times!

  1. Lee Hsien Loong - Singapore
    Salary: $US2.47 million
    Per head of population: 54c
  2. Brian Cowen - Ireland
    Salary: $US341,000
    Per head of population: 9c
  3. Donald Tsang Yum-Kuen - Hong Kong
    Salary: $US516,000
    Per head of population: 7c
  4. Kevin Rudd - Australia
    Salary: $US229,000
    Per head of population: 1c
  5. Stephen Harper - Canada
    Salary: $US246,000
    Per head of population: 0.7c
  6. Nicolas Sarkozy - France
    Salary: $US318,000
    Per head of population: 0.5c
  7. Gordon Brown - UK
    Salary: $US279,000
    Per head of population: 0.5c
  8. Angela Merkel - Germany
    Salary: $US303,000
    Per head of population: 0.4c
  9. Taro Aso - Japan
    Salary: $US243,000
    Per head of population: 0.2c
  10. Barack Obama - United States
    Salary: $US400,000
    Per head of population: 0.1c
State of the Regions report 2006-07
Forthcoming events

For a full listing of forthcoming events, see ALGA's Events calendar.

ALGA News can be read online each week at www.alga.asn.au/news.aspx
Editor: newscomments@alga.asn.au Tel: 02 6122 9434.
Australian Local Government Association - 8 Geils Court, Deakin, ACT, 2600.
Copyright © 2001 Australian Local Government Association. ISSN 1447-980X
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