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16 Aug 2013

PEFO recognises Government's neutral referendum campaign costs

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This week the federal Treasury released the Pre-Election Economic and Fiscal Outlook (PEFO), which forecast a deficit of $30.1 billion for 2013-14 and $24 billion for 2014-15. 

The collective position of the Commonwealth and all state budgets is forecast to be a net surplus of $6 billion in 2016-17. 

Included in PEFO is reference to spending on the Government's neutral information campaign for a referendum to include local government in the Constitution.  The referendum was scheduled to be held in conjunction with a 14 September federal election but the referendum was cancelled on 4 August when Prime Minister Kevin Rudd announced his decision to hold the election on 7 September. 

The PEFO outlines that of the $11.6 million allocated to the Department of Regional Australia, Local Government, the Arts and Sport to support the referendum on local government and undertake a national civics education campaign to provide information to the general public on the referendum and reform process, the Department has spent $2.5 million, with $9.1 million to be returned to the Commonwealth.

Last month, ALGA received $10 million in Federal Government funding to promote the Yes Case for the referendum.  The local government sector spent in the order of $3 million in developing the national campaign for rollout under the expectation that the referendum would be held on 14 September.

Given that the decision to drop the 2013 referendum was made without consultation with local government and for reasons which were beyond local government's control, ALGA believes it would be inequitable if councils had to bear the costs of the associated campaign.  ALGA is therefore finalising details of the costs incurred and will be working with the incoming government to determine whether local government is reimbursed for its expenditure on the campaign.

Second school chaplains challenge significant to local government

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ALGA is watching closely as Queensland man Ron Williams launches his second challenge against the federal government in the High Court over a law that allows it to continue funding a national school chaplaincy program to provide spiritual guidance in schools. 

The first Williams Case related to Commonwealth powers that allow direct federal funding of programs such as the Roads to Recovery program, which provides $350 million each year to councils across the country to maintain local roads and community infrastructure.

In 2012, Toowoomba father of six, Ron Williams won a High Court challenge against the chaplaincy program when the Court ruled that it exceeded the Commonwealth's executive spending powers under the Constitution.  The Court found that the Government could not spend money on programs, even if they were permitted under the executive powers, without authority from Parliament.

The Government has since introduced legislation in an attempt to provide legislative backing for hundreds of programs but Mr Williams' lawyers argue that the legislative fix is not valid.    

Mr Williams' lawyers have served the Department of the Attorney-General, Mark Dreyfus, QC, a writ of summons and are expected to also serve Education Minister Bill Shorten and the Queensland Scripture Union.   

For many years, ALGA has been championing the need to include local government in the Constitution to protect important funds for community projects from legal challenge.  If such a challenge was successful, hundreds of millions of dollars in federal funding for facilities and services across Australia that are within local communities, like Roads to Recovery projects, childcare centres, aged care centres libraries, community sportsgrounds, swimming pools, community centres and public parks may have to be withdrawn.

The second Williams Case will raise questions of constitutional validity for hundreds of programs and once again put the spotlight on the limits of Commonwealth powers.

Election 2013 - Week two in review

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In comparison to the fanfare of the first week of the official election campaign, the second week was much more subdued on the policy announcement front.

The week has been dominated by the announcement of the Pre-election Economic and Fiscal Outlook (PEFO).  The release of PEFO is a requirement of the Charter of Budget Honesty, first outlined by former Treasurer Peter Costello.  The Treasury and the Department of Finance outlines the state of the Commonwealth Government's books, therefore allowing the Government, the Opposition and the minor parties to cost their policies and determine the impact on the Budget bottom line.  As expected, the figures line up with the statement issued by Treasurer Chris Bowen on Friday 2 August 2013. 

The most significant announcement by the Opposition during the week relates to the $100 million to be provided over the forward estimates to improve mobile phone reception for identified "black spots".  The Government has been focusing on the issues of skills building and apprenticeships, with a focus on disadvantaged areas, with lower than average high school completion rates.  This "Step into Skills" policy will have a cost of $35 million over the next four years. 

An area of focus over the last week has been Indigenous issues.  At the Garma Festival in Arnhem Land, Opposition Leader Tony Abbott announced the intention to create an advisory panel on Indigenous issues that would report directly to the Prime Minister, to be headed by former ALP National President, Warren Mundine. Prime Minister Rudd and Minister Jenny Macklin announced additional "Closing the Gap" funding to build 2500 more houses and aid communities to develop alcohol management plans.

President's Column

Felicity-ann_Lewis

This week I wrote to Mayors and Councillors across the country to invite their council to participate in "The Local Government Challenge: A Council's Experience" at the upcoming National Local Roads and Transport Congress to be held from 12-14 November in Alice Springs.  The Local Government Challenge provides an opportunity for councils to showcase significant road and transport projects in their local area.   

To participate in the challenge, all councils have to do is provide a short submission outlining the steps they took to overcome challenges to achieve local transport infrastructure projects for their community.  All submissions will be displayed at the Roads Congress, with about six councils that have made submissions being invited to speak about their projects in one of the two Local Government Challenge plenary sessions.

I have been privileged during my time as ALGA President to hear about the many great road infrastructure projects which councils have been able to deliver for their communities.  Most of those have relied on federal funds through programs like Roads to Recovery. 

The aim of the Roads Congress is to highlight the importance of federal funding in overcoming road and infrastructure challenges and reinforce the need for increased and permanent funding under the Roads to Recovery program.         

This year's Congress will be held following the 2013 federal election.  It provides local government with a unique opportunity to unite and shape the proposal for the roads agenda to the new federal government.  Themed Sustaining our Roads: Good Business, Good Governance, Good Bottom-line, this year's Congress will include the launch of the 2013 State of the Local Roads Assets Report, which will assess current levels of expenditure and the standard of community roads and infrastructure.

For more information about the Congress, visit the ALGA website, or click here.


Mayor Felicity-ann Lewis
ALGA President

Western Australian Local Government Association conference outcomes

Mayors, shire presidents, chief executives and staff from councils across Western Australia attended the 2013 WA Local Government Association's (WALGA) general meeting in Perth last week.

Premier Colin Barnett attended the meeting ahead of the WALGA Convention and Trade Exhibition, where one of the hot topics was the issue of council amalgamations.  

Local Government Minister Tony Simpson recently announced that the number of metropolitan councils would be reduced from 30 to 14 within two years through a series of amalgamations and three councils unchanged.

It was also announced that $200,000 would be provided to prepare each plan with the Minister telling a forum of Mayors, Presidents and CEOs that the State Government would fund transition costs in establishing the new councils.

WA Local Government Association President Mayor Troy Pickard said the plan for 14 metropolitan councils was "close" to the sector-endorsed model of between 15 and 20 metropolitan councils.

"Based on what other amalgamations have cost in WA and interstate we would expect somewhere between $40 million to $50 million would be required to create the 11 new entities as proposed," Mayor Pickard said.

He said WALGA would take the role of supporting local governments that wanted to make the transition to enable the proposed new entities.

"The Local Government sector has generally acknowledged there is a need for reform and what the State Government has proposed is very close to the model endorsed by the sector," he said.

"However it is a reality while some councils will embrace the changes there will be others that will have their reasons to resist."

Measures to cut emissions

A series of reports has been released to highlight successful measures in emissions abatement across the power, industry, buildings, land-use and waste sectors.

The reports are part of a major research project by ClimateWorks Australia entitled, Tracking Progress Towards a Low Carbon Economy.

The research represents the first detailed stocktake of emissions abatement in Australia and shows that over the past decade there has been no growth in greenhouse gas emissions, despite an increase in gross domestic product of more than 31 per cent between 2002-03 and 2011-12. 

"There are a number of factors that contributed to this, including increased use of renewable energy, reduction in electricity demand and increased energy efficiency activity within industry," a report overview says. 

"Industry has shown energy efficiency improvements of around 1.3 per cent, which compares with the best rates of improvement internationally (based on International Energy Agency analysis)."

It says the emissions intensity of industrial energy consumption declined by 3 per cent. 

"In particular, the aluminium, cement and chemicals industries showed a 10 per cent reduction in emissions intensity," it says.

"The reports suggest that even greater reductions are possible - up to a 25 per cent reduction on 2000 levels."

To access the report series, click here.

Strategic planning in Australian local government

The Australian Centre of Excellence for Local Government (ACELG) at UTS has published a new paper that compares the various approaches in each Australian jurisdiction toward implementing local government reforms, with a particular look at requirements for strategic and corporate planning and reporting.

This paper demonstrates that more work can be done to understand whether the legislative provisions are indeed leading to better strategic management within the councils and localities.

The paper, Strategic planning in Australian local government: A comparative analysis of state frameworks, was written by Su Fei Tan and Sarah Artist of the UTS Centre for Local Government, an ACELG Program Partner.

In practice there are a number of practical, conceptual and resourcing challenges for councils in undertaking an effective strategic planning and reporting process.

Each state requires different things from local governments in terms of strategic and corporate planning. Strategic planning is concerned with influencing trends and issues in the locality, irrespective of a council’s corporate responsibilities.  This is distinct from corporate planning which addresses the administration of the council's own activities.  By comparing the rationale and the realities strategic planning provisions, considerations for future policy reforms can be explored.

The research begins with a brief overview of the history of local government strategic and corporate planning, and then examines the various legislative reforms and provisions mandated by the different Australian jurisdictions which set out requirements for local government strategic planning.  A table summarises the features of these provisions in each state.

Some initial observations on the challenges of implementing strategic and corporate planning across the jurisdictions are then made, such as resourcing implementation, roles and responsibilities, community input into resourcing, intergovernmental integration, measuring progress.

Lord Mayors explore financing solutions for capital cities

Australian Governments are facing a growing demand for public infrastructure projects, coupled with a diminishing capacity to pay for this infrastructure through core revenues.  Lord Mayors commissioned Ernst and Young to assess innovative financing mechanisms available to help build the infrastructure our nation needs.

In releasing the report, CCCLM Chair Lord Mayor of Brisbane, Graham Quirk commented that "this report provides a concise roundup of infrastructure financing options for local government and highlights the infrastructure task facing our cities and their communities.  It investigates capital city revenue sources and their capacity and capability to fund the infrastructure required, as well as the constraints and opportunities influencing alternative use of finance".

Key findings of the research show that:

  • Our Cities are in a strong position to move towards a more favourable debt load and make better use of alternative sources of finance for their identified capital investment needs
  • Loans supported by State Governments, in those jurisdictions where they are available to councils, are likely to be the cheapest form of borrowing for local governments in the short and medium term
  • For larger borrowing requirements, public bond issuance into the Australian market could provide significant savings compared with ‘conventional’ bank debt
  • Collective borrowing arrangements across a number of councils could provide favourable outcomes
  • There could be further reduction in costs for borrowing councils should the Commonwealth Government consider tax concessional arrangements for lenders.

Lord Mayor Quirk commented that "there is an opportunity for capital city council to use innovative financing solutions to deliver infrastructure projects".

"Lord Mayors call on the Commonwealth and State and Territory governments to collaborate with capital cities on projects of national significance" Lord Mayor Quirk said.

 

Inquiry into local economic development initiatives in Victoria

The Victorian Parliamentary Committee for Economic Development and Infrastructure has returned from its study tour of Europe to release the findings from its Inquiry into local economic development initiatives in Victoria.  The Municipal Association of Victoria (MAV) suggests all councils read and review the recommendations of this extraordinary report, which among other things include an overhaul of the Municipal Association of Victoria Act 1907.

In both its written submission and attendance at an inquiry hearing, the MAV emphasised the State and Federal Government roles in driving economic development by delivering major infrastructure investment, and the role of local government to leverage off that investment with local strategies and a supportive planning environment.

To access the Committee's final report on the Inquiry, click here.

NBN training kits to support small businesses and not for profits

Small to medium businesses and non-profit organisations in the social and community services, arts, recreation and education sectors will soon be able to access tailored advice on how to build their business and improve their services using the National Broadband Network (NBN).

Parliamentary Secretary for Broadband Ed Husic this week announced that the Australian Council of Social Service (ACOSS) and the Australian Communications Consumer Action Network (ACCAN) will each receive a grant of $500,000 to develop digital business kits to help their sectors get online and use the NBN to drive productivity.

"Organisations need targeted information and an understanding of how successful organisations in their sector are using the internet and online tools to take full advantage of the NBN," Mr Husic said.

"The NBN has the potential to help turbo charge innovation in the social services sector, particularly in the area of communication and fund-raising."

Chief Executive Officer of ACOSS, Dr Cassandra Goldie, said digital technology was vital for the delivery of community and social services, particularly for ensuring the quality and effectiveness of services in regional areas.

"Our sector stands to gain significant benefits from using NBN-enabled platforms," Dr Goldie said.

"This project will deliver much-needed and practical resources for a wide range of not-for-profit organisations."

ACCAN's Chief Executive Officer, Teresa Corbin, said high-speed broadband would bring significant economic, social and environmental benefits for Australia.

"It is essential that small businesses and non-profit organisations get the training they need to be able to use the NBN in their operations effectively," Ms Corbin said.

Lismore celebrates 50 years of sister-city relationship

Lismore is celebrating Australia's longest running sister-city relationship involving Japan.

It was 50 years ago that an agreement was signed with Yamato Takada.

A delegation from the Japanese City was on hand for the official opening of the refurbished City Hall.

Mayor Jenny Dowell made it clear Lismore was looking forward to a long-term relationship.

"It's a golden day for our golden anniversary," she said.

"Neither Mayor Yoshida nor I think we will be here in 50 years time to celebrate the centenary.

"But many of the young people here will be here, and we hope that you remember this day and celebrate in 2063, 100 years of this special friendship."

Cultural heritage under threat

Australia's recognition, management and protection of its Indigenous cultural heritage sites is "in crisis of neglect", according to a leading Indigenous archaeologist.

Chair of the Australian Indigenous Archaeologists’ Association (AIAA), Dave Johnston said a failure to maintain minimum national standards for Indigenous site protection and management policy was resulting in the loss or destruction of unique and ancient Indigenous heritage record.

"The varied State and Territory legislation means that Indigenous communities regularly have had to fight to protect important sites under threat - sites that are important to all Australians," Mr Johnston said.

He made the comments while presenting a vision for the establishment of a National Indigenous Heritage Commission and a national strategy for Indigenous cultural heritage management at the Australian Institute of Aboriginal and Torres Strait Islander Studies in Canberra. 

He said a National Indigenous Heritage Commission could keep a national register of Indigenous Heritage sites and oversee minimum protection and management requirements were established and maintained by the States and Territories. 

"The Commission could ensure that a minimum standard of Indigenous consultation is carried out throughout the country in regards to the identification, management, protection or destruction of Indigenous sites," Mr Johnston said.

"The Commission could also adjudicate over major heritage debates where development threatens heritage values." 

He also noted that such a body should also have the Commonwealth powers to intervene to protect significant Indigenous sites when developments threatened their existence.

Australia wins international award for energy efficient house design

A team from the University of Wollongong has won a worldwide competition to design a zero-emissions solar house by refitting a humble Australian fibro cottage.

It is the first time an Australian team has entered the Solar Decathlon, which has been held in Datong, China since 2002.

The 51-strong team built the Flame House - a retrofitted fibro cottage designed to appeal to older clients nearing retirement.

The Australians beat 20 other finalists to place first in the engineering, solar and architecture categories, with a team from China second and Sweden third.

Project Manager Lloyd Niccol says the competition is about producing a home that is comfortable and generates more energy than it consumes.

"We're trying to find some way to make an immediately and positive impact on our environment," he said.

"So it's showing how you can bring the typical home built in the 1950s into the current modern age so its comfortable, its got all the amenities you require, and it produces more energy than it consumes."

Mr Niccol says the team used a range of technologies to modernise the cottage.

"We've replaced the single glazing with double glazed unit. So really, that just drives down the initial use for heating and cooling of the home, and makes it far more efficient.

"We've then retrofitted two types of solar panels to the roof. We've then got a really, really innovative heating and ventilation system."

Mr Niccol says the competition home would cost approximately $300,000 to build in Australia.

The prize-winning pad is set to be pulled apart before being shipped back to the University of Wollongong to be used for education and research.

Peri-Urban Conference 2013

Registrations to attend the first Peri-Urban Conference in Australia are now open. The conference runs over two days on 1 & 2 October including a conference dinner on 1 October. 

There will be approximately 50 papers presented which come from a wide range of speakers ranging from international to the local government perspectives.  Conference attendees have the opportunity to discuss and participate in workshops and roundtable discussions about issues and responses pertaining to rapidly changing peri-urban environments. 

Discounted early bird registrations are available until August 30, discounted group bookings are also available.

The program is now available online

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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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