11th September 2012
- Recommends Shared Service Centres
- NSW Government should consider pilot program with councils along Parramatta Rd
- Rate pegging should be replaced by capping on operating costs
Urban Taskforce Australia today issued a detailed report on reform of the NSW Local Government sector and called on the State Government to introduce a range of positive options rather than pursue controversial council amalgamations.
The Sydneys Liveability Crisis Reforming Local Government report, which includes comprehensive research by former NSW Treasury head Percy Allan, recommends alternatives to forced amalgamations which makes councils more efficient while ensuring that they continue to effectively represent and respond to local communities.
While there is a determined push underway in some quarters for forced council amalgamations, Urban Taskforce has a new solution to that keeps councils as local bodies while making them much more effective through the use of ˜shared service centres, said Chris Johnson, the Chief Executive of Urban Taskforce.
This report has the benefit of significant input from Percy Allan who has vast knowledge about the running of Local Government and who undertook one of the most extensive inquiries into the sector six years ago, Mr Johnson said.
Now is the time to reform Local Government in NSW and indeed in most other States amid the intense ongoing debate about achieving much needed efficiencies at the council level while ensuring communities still have a voice, he said.
In NSW, the planning review is underway, councils have also called for reform through the Destination 2036 action plan and the State Government has established an Independent Local Government Review Panel to look at reform including the financial sustainability of Local Governments, Mr Johnson said.
The Urban Taskforce/Percy Allan proposals present a third way to achieve necessary reforms between more of the same and the disruption that would come from forced amalgamations, he said.
Key proposals in the report include:
1. KEEP LOCAL GOVERNMENT LOCAL
Keep the local in Local Government by not forcing amalgamation unless communities want this.
2. LOCAL PLACE MANAGERS
Councils should be the local place managers for their communities.
3. SHARED SERVICE CENTRES
Shared Service Centres should be established for groups of 10 councils or so that undertake up to 90% of the services. This should include strategic planning and planning assessment services.
4. HUNTER COUNCILS AS A MODEL
The model for a Shared Service Centre is in the Hunter region north of Sydney where 11 councils have formed an organisation to undertake many of the services as a business.
5. CAP OPERATING COSTS
Rate pegging should be replaced by capping of operating costs to force funds into infrastructure.
6. INDEPENDENT ASSESSMENT
Development Applications under $10 million should be assessed by independent panels appointed by councils and serviced by planning staff from the Shared Service Centre.
7. REGIONAL PANELS
Development Assessments over $10 million should be assessed by the Joint Regional Planning Panels serviced by planning staff from the Shared Service Centre.
8. REGIONAL INFRASTRUCTURE LEVIES
Infrastructure levies should be a broad based levy spread across the area serviced by the Shared Service Centre.
9. REGIONAL ALIGNMENT
The NSW Government should align the proposed Regional Planning Boards, the Joint Regional Planning Panels and other joint state and local bodies related to economic development or transport to the boundaries of the Shared Service Centres. This may relate to the current boundaries of Regional Organisations of Councils (ROC).
10. PILOT PROJECT
A pilot project for these reforms could be with the councils along Parramatta Road where significant urban change may occur.
Mr Johnson said research undertaken by Percy Allan show that 37 of the largest 100 councils in NSW were financially unsustainable and a further 16 were vulnerable.
Over the last 30 years councils have increased expenditure on operating costs by eleven times but only increased expenditure on capital costs for infrastructure by two times. The research shows that Australian councils have a small share of GDP expenditure at 2% compared to 8% in the US and 12% in the UK — yet their aspirations are clearly beyond their means, he said.
Surveys of public attitudes to NSW councils have shown that the biggest concerns are with planning, development assessment and infrastructure provision.
Sydney councils have contributed to the citys liveability crisis by not rezoning sufficient land for urban consolidation, inadequate spending on infrastructure and allowing the planning system to become politicised, complex and slow. This environment is driving the development industry to prefer to develop new housing in other states and cities.
Many studies have demonstrated that bigger councils formed through amalgamations do not reduce costs but can increase costs to rate payers.
Communities prefer councils to be local as demonstrated by the Queensland Governments offer of de-amalgamation which has had a positive response from 19 councils, Mr Johnson said.
View the Urban Taskforce Repots: Urban Ideas 3 and Sydney Liveability Crisis – reforming local government
View Appendices A & B here
Fact Sheet: Hunter Councils Shared Service Centre here
Radio Coverage: 11th Sept 12th Sept 13th Sept
