Annual Report 2004 - 2005

2 November 2005

Contents

Achievements 2004 - 2005

Highlights

  • Roads to Recovery renewed for four more years - an additional $1.35bn for local roads
  • Major election commitments delivered in full in the May 2005 Federal Budget (see box below)
  • Commonwealth response to the Fair Share report on cost shifting, including agreement to develop an intergovernmental agreement on cost shifting
  • National Packaging Covenant - significant improvement in the National Packaging Covenant CP including targets for recycled materials and a meaningful mid-term review
  • Agreement by Environment Protection Ministers to investigate alternative market-based and other effective mechanisms to reduce packaging waste
  • Role of elected members in planning and development assessment defended and protected through participation in the Development Assessment Forum
  • Funding to implement a national emergency management project including the joint development of a national local government emergency management planning framework
  • Increased local government awareness of and involvement in addressing the implications of an ageing population
  • Strengthened local government Natural Resource Management networks including Local Government NRM facilitators
  • Significant growing recognition by regional, state and Commonwealth agencies of the need to build stronger linkages between regional groups and local government
  • Participation in the COAG in review of the National Competition Policy
Cost-shifting and local government financing

Eliminating cost shifting and achieving a better funding deal for local government remains the primary objective of ALGA. During 2004-05, ALGA worked with the Australian and state and territory governments to begin work on the development of an intergovernmental agreement on cost shifting. Officials are working on a draft agreement to present to the Local Government and Planning Ministers' Council in March 2006.

On 23 June 2005, the Australian Government released its response to the Fair Share report on cost shifting (Rates and Taxes: A Fair Share for Responsible Local Government, tabled in Federal Parliament in November 2003). The Australian Government's response has four key components:

  1. An intergovernmental agreement on cost shifting
  2. A Productivity Commission study on barriers to local government revenue
  3. Recognition of local government by both Houses of Federal Parliament
  4. Review of interstate distribution of the identified roads component of financial assistance grants

In addition, Jim Lloyd, Minister for Local Government and Roads has committed the Australian Government to "explore opportunities to further develop partnerships with local government to the benefit of local communities". There is no change to the fundamental arrangements for the Financial Assistance Grants methodology. Generally, the response did not support a number of idiosyncratic recommendations in the Fair Share report, for example, expanding the role of the Australian National Audit Office. The arguments put forward by ALGA were well reflected in the Australian Government's response.

Achieving ALGA's goal for improved local government funding arrangements is a complex and difficult task; however, over the past twelve months there has been steady progress on the development of the IGA. Importantly, the political climate at the federal level is good, with growing recognition of the financial challenges facing local government among the major parties.

National Competition Policy

During 2004, ALGA prepared a submission for the Productivity Commission's Review of National Competition Policy. This submission provided an outline of the impact of the current arrangements on local government as well as a general overview of local government's obligations under the Competition Policy Agreement (CPA) and the resulting issues. ALGA's efforts regarding NCP are ongoing and throughout 2005-06, it will be involved in a high-level COAG officials group examining future reform.

Federal Budget analysis and review of the financing website

ALGA produced an extensive analysis of the 2005-06 Federal Budget and its impact on local government. The analysis provided an overview of the funding (both tied and untied) local government receives from the Australian Government. It also provided a summary of the overall Federal Budget as well as more detailed information on the program areas relevant to local government. The financing section of ALGA's website was reviewed during 2004-05. It now provides an extensive overview of local government's financial position as well as background to the cost-shifting inquiry and ALGA's response; ALGA's campaign for fair federal funding (at least 1% of Commonwealth taxation revenue); and Australia's taxation arrangements.

Addressing the insurance crisis

ALGA has played an important role in representing local government's concerns arising from the crisis in public liability insurance. Specifically, ALGA has been an active member of the Ministerial Forum on Insurance Issues since inception. The forum has implemented wide ranging legislative reforms to increase the availability and reduce the cost of public liability insurance.

In April 2005, the Forum noted recent improvements in the affordability and availability of all liability classes of insurance. The key finding of the most recent reports by the Australian Competition and Consumer Commission found that public liability premiums have fallen, on average, by 15 per cent in the 6 months to June 2004. Professional indemnity premiums have fallen, on average, by 17 per cent over the same period. In supporting the work of the Ministerial Forum, ALGA is represented on the Heads of Treasury Insurance Issues Working Group. This work included collation of information from the state and territory associations and its presentation to both the ministerial council and the working group.

Division 250

ALGA has been active in lobbying the Australian Government over proposed changes to the Income Tax Assessment Act that will affect the tax treatment of private public sector partnerships. After much petitioning, the Australian Government has announced changes to the approach it intends to take. After months of uncertainty, the Government is promising to make the tax rules clearer and has agreed that certain commercial operating services and property lease arrangements should be excluded. The Federal Treasury is preparing new legislation that will be circulated to stakeholders by the end of 2005.

Transport

New Roads to Recovery program - Implementation

Over the course of 2004/05 ALGA conducted an active dialogue with Ministers and with the Department of Transport and Regional Development over the arrangements that would be applied to the renewed Roads to Recovery program, due to commence in July 2005. In September 2004 the ALGA welcomed the announcement made by Federal Minister for Transport and Regional Development, the Hon John Anderson MP, that the Government would, if re-elected, scrap its proposal to divert one third of Roads to Recovery money to a strategic regional road pool and instead provide for regional road projects through a new $150 million strategic fund. The new funding would be provided over 5 years and would include $30 million for local roads in unincorporated areas. ALGA made representations that this element of the programs be subject to an objective and transparent project selection process and that the program be boosted by a further $250 million to facilitate councils putting forward worthwhile regionally based land transport projects. This followed the announcement by the Government in the lead up to the federal election that they were committing $93 million to road projects from this fund as election commitments. In its dialogue with ALGA the Government also elaborated on its plans to incorporate the new Roads to Recovery program within its new AusLink Program. The AusLink legislation, which also incorporated arrangements for funding an identified network of road and rail corridors, and for continuing the Blackspots program, was introduced into the Parliament in December 2004. ALGA made a submission to the Senate Rural, Regional and Transport Legislation Committee which commenced a review of the AusLink enabling legislation, in March 2005. In its submission ALGA highlighted the immense value that had been provided by the Roads to Recovery program in addressing the rate of decline in local roads, and calling for a seamless transition f to the new program. The Senate Committee gave the green light to the legislation and it enjoyed bi-partisan in the Australian Parliament. ALGA expressed its appreciation to the minister for transport and regional Services, the Hon John Anderson MP on the passage of the Bill through the Senate in June 2005, for his personal interest in and his championing of the Roads to Recovery program.

National Roads Congress - Barossa Valley

A record 530 local government delegates attended the 5th National Local Roads Conference held at Tanunda in the Barossa Valley, South Australia, on 11-13 July, 2004. The major issues addressed by the Congress included; the operation of the renewed Roads to Recovery Program, particularly the then $400 million strategic component of the program, the implications for local government, regional road programs, national heavy vehicle reforms, transport security, community transport and mobility for older persons and local government road safety programs in which some best practice local government models were show-cased. The Congress was staged at a time which represented the culmination of a strong and successful grass roots campaign on the part of local government for the renewal of the Roads to Recovery Program. Both the Federal Roads Minister, Senator the Hon Ian Campbell and the Shadow Minister for Transport Martin Ferguson MP affirmed the support of their respective parties to renewal of the program and paid recognition to the importance of ongoing funding under the Blackspots program. Following strong representations from local government Ian Campbell further committed the Government to allocating state-based shares for the $400 million a year strategic component of the renewed Roads to Recovery program.

National local roads assets database

In August 2004 ALGA released two reports on the benefits that could be derived from aggregating road data from all Australian jurisdictions into a national roads database. This was the first phase of a initiative to establish such a database to provide a sounder platform for decision making on local roads and to provide local government with better quality information to support its advocacy to other levels of government on local road funding. It was further considered that such a database could also provide support for the development of infrastructure management programs to assist councils at the local level. The studies were funded by the Regional Funding Initiatives Branch Program.

In June 2005 ALGA secured funding from the Department of Transport and Regional Services and the National Transport Commission for the establishment and operation of ALGA's National Local Roads Database System. The project will be operational by May 2006. Federal Roads minister the Hon Jim Lloyd said that the project would "help track the performance, funding an safety of our local roads system, so that we can see whether we are achieving the maximum benefit for the money we are all investing - and this will be important in evaluating the Roads to Recovery program".

Airport charges and regional air services

In the wake of the Making Ends Meet report and proposed price hikes by Airservices Australia for regional airports, ALGA mounted a spirited case for more support for rural and remote aviation services. The report, which was produced by the House of Representatives transport committee recommended more resources and federal assistance be allocated for regional air services.

Passenger transport issues

Passenger transport and urban congestion issues are priorities of increasing importance to many councils. In November 2004 ALGA joined a key national committee that provides advice to the Transport Ministers Council on passenger transport issues. The group promotes sustainable passenger transport and a system wide approach to personal mobility. The work program of the committee covers public transport, cycling, walking, sustainable car use and travel demand management.

Heavy vehicle charges and road pricing

ALGA made a submission to the National Transport Commission that recognised the role of road transport in supporting local communities but requesting that charging arrangements recognise the increasing use by heavy vehicles of local roads and the commensurate impacts that this growth in traffic had on local amenity. The submission advocated an appropriate charging mechanism to return at least incremental costs to local communities via councils.

ALGA/Austroads partnership

ALGA and Austroads reached a milestone agreement to provide councils with better access to the wide range of tools and research available through the work of Austroads, including on road design, construction and operation, pavement technology, road safety and traffic management. Austroads developed a new website that contains all of its publications and provided the means for individual councils to browse and download electronic copies of all Austroads publications free of charge. Providing free online access to Austroads materials is a substantial resource particularly for professional and technical staff and for driving efficient utilisation of the road asset dollar.

Efficiency of ports

ALGA made a submission to an Inquiry conducted by the House of Representatives Committee on Transport and Regional Services examining regional road and rail connections to Australia's ports. The main messages in the submission were that the Roads to Recovery program was essential to maintain an functioning local road network; that regional transport efficiency could be increased by extra funding for the strategic regional component of Auslink, and where trucks replace rail for export freight such as grain, then councils should have access to road charges to compensate for the damage to the local road system.

Environment

Local Government Natural Resource Management (NRM)

The Australian Government continued to fund the national Local Government NRM Facilitator position at ALGA during 2004-05, together with similar positions in each of the state associations around Australia. The national facilitator undertook significant work as part of the local government network and the broader facilitator network. In addition, ALGA hosted a session and assisted with the organisation of a national incentives forum, run by the Australian Government and Trust for Nature and was able to participate in the Intergovernmental Coastal Advisory Group, ensuring that local government issues were heard.

Coastal zone management

ALGA understands the significant development pressures facing coastal councils and the impact this can have on Australia's natural resource base. As a result, ALGA has worked with the Australian Government to develop a coastal zone management project. The Australian Government sponsored the environment symposium at the National General Assembly of Local Government in 2004, focussing on coastal zone management. The Australian Government provided $40,000 to ALGA to undertake further coastal management work, which included a survey of coastal councils. The survey was followed by a series of case studies examining innovative solutions to natural resource issues. A number of presentations were made on the project and findings. A coastal section on the ALGA environment website was developed, providing results of the projects and sources of information for coastal managers.

National Water Initiative

ALGA continued to participate in key aspects of the COAG National Water Initiative. This included the development of draft indicators to measure the success of the initiative. Councils are now eligible to apply for $50,000 grants under the Community Water Grants component and up to $1m or more in the Water Smart Australia component of the Australian Water Fund.

NRM Ministerial Council

ALGA continued to participate in the strategic planning work of the Natural Resource Management Ministerial Council, the Steering Committee and working groups. Work included the development of a national framework and program to address exotic weeds and pests, the future direction of NRM funding, developing a response to climate change, undertaking work under the National Water Initiative, addressing biodiversity decline and developing economic instruments to achieve environmental outcomes.

Environment Protection and Heritage Ministerial Council

ALGA participated in the Standing Committee for this Ministerial Council addressing a number of priorities, such as achieving a extension to the National Packaging Covenant which now includes targets, further development of extended producer responsibility programs for industries such as tyres and computers and work around the area of air quality, water use efficiency and water reuse.

National security / Counter terrorism

ALGA continued to build its relationship with key federal agencies covering issues of emergency management and national security. Some $33m was allocated in the May 2005 Federal Budget to enhance the emergency management capacity of local government through the Working Together To Manage Emergencies program. ALGA has received funding from this program for a series of national projects. During 2004-05, ALGA participated in the Augmented Australian Police Ministers Council, the Australian Emergency Management Committee and the subordinate Emergency Management Officers Working Group. ALGA also began receiving regular high level security briefings from Australian Government agencies. An additional $30m was also allocated in the 2005 Federal Budget for the National Community Crime Prevention Program.

Information and communication technology

Networking the Nation funded activities came to an end in June 2005. During 2004-05, the local government framework for interoperability was completed, helping the three spheres of government interact and exchange information electronically, contributing to greater efficiency, improved service delivery, reduced duplication and significant savings for governments and the community.

ALGA has supervised the roll out of a $1.5m projects of national significance program, funded through the Networking the Nation program. Funded projects include:

  • Directional Roadmap - providing guidance to local government over how to maximise the benefits from using ICT over the next five to 10 years.
  • Development Application Interface project - sharing land sub-division application data automatically between councils and the South Australian Government.
  • Shared Services project - a joint project between MAV and LGAQ to pilot an asset management system in Queensland based on the business process approach developed by MAV.

ALGA made a significant contribution to the development of the National Service Improvement Framework (NSIF), now been endorsed by the nation's peak ITC forum, the Online Council.

ALGA has developed and lodged a proposal - Better Regional Services - with the Australian Government for significant new funding to enhance the service delivery capacity of regional councils through the use of ICT.

Ageing project

Councils throughout Australia have demonstrated a strong interest in the impact of demographic change and an ageing population. Many councils have developed, or are considering developing, local strategies to support an ageing community. Since the launch the Australian Local Government Population Ageing Action Plan in July 2004, ALGA has been actively building the capacity of local government to plan for an ageing population. To date, the following initiatives have been implemented:

  • ALGA's Planning for an Ageing Community website - features news and updates, a resource centre and details about the implementation of the ageing action plan
  • AGEINGforum - an online interactive discussion list to help keep local government councillors and officers in contact with each other and informed about ageing issues
  • Connecting with Seniors project - showcases local councils that have responded to the diversity of seniors with the development or delivery of policies or programs
  • National General Assembly workshop - the ageing symposium in 2004 showcased a range of practical ideas and initiatives to assist councils plan for the future housing and residential care needs of ageing communities.
  • Ageing Awareness and Action Survey - undertaken between December 2004 and February 2005, the survey gauged the awareness of population ageing within local government and assessed the level of local government action on population ageing issues
  • Awareness to action - a guide to assist local government to make further progress in planning for an ageing community. The guide also provides key resources and a self assessment checklist to assist local councils plan for an ageing community.
Productivity Commission ageing study

ALGA undertook an analysis of the economic implications of an ageing Australia on local government as part of the Productivity Commission's research report, Economic implications of an ageing Australia, which was released in April 2005. The study examined the productivity, labour supply and fiscal implications of likely demographic trends over the next 40 years. It included an assessment of demographic change at the regional level and the economic implications for local government.

Inquiry into health funding

ALGA provided a submission to an inquiry into health funding established by the House of Representatives standing committee on health and ageing. ALGA's submission gave particular consideration to the roles and responsibilities of local government in regard to health and related services, funding arrangements and the better definition of roles and responsibilities between the different levels of government.

Productivity Commission health workforce study

The focus of this research study was on the primary health care workforce and as such, ALGA's submission discussed the provision of medical services, particularly in rural and remote regions and the impact of medical shortages on local government. The submission also focussed on the role of local government in the delivery of public health services and the challenges of attracting and maintaining a suitably qualified public health workforce.

Rural Medical Infrastructure Fund (RMIF)

ALGA lobbied for, and secured, the establishment of the Australian Government's $15m Rural Medical Infrastructure Fund to assist rural councils recruit and retain GPs. The Fund will finance the establishment and maintenance of premises and equipment to assist rural and regional councils to establish community medical facilities.

Election commitments delivered in full

The following election commitments to local government were funded in the May 2005 Federal Budget.

  • Roads to Recovery program renewed for another four years with a further $1.35bn for local roads
  • Additional $90m to fund the Black Spot road safety program
  • Coalition committed to an intergovernmental agreement to bring a more ordered and transparent approach to coordinating the responsibilities of Australian, state/territory and local government functions
  • Controversial proposal to use one third of each council's allocation to fund the strategic road pool - as outlined in the AusLink white paper - was scrapped
  • Councils eligible to bid for a new $2bn Australian Water Fund including a $1.6bn funding pool to accelerate smart technologies and practices in water use across Australia
  • Additional $146m over four years for regional development, including $33m for two new 'Sustainable Regions'
  • $15m for councils for purchase of facilities to attract/retain doctors in regional areas
  • The Coalition recognises that policy development assessment reform can only be developed and driven with 'the full support of local councils and local communities'
  • $33m for a local government emergency management initiative - Working Together to Manage Emergencies
  • $50m to assist councils streamline reduce regulatory complexity and compliance requirements for the home-based business sector.
  • $30m in additional funding for the national community crime prevention programs, including a $10m 'top up' for a grants scheme open to local government and community groups

President's report

Fair funding! Fair treatment! Formal recognition!

ALGA has three principal goals. Fair funding, fair treatment and formal recognition. We have actively pursued these during the course of 2004-05 and made some significant progress.

The key to our success lies in a unified, national approach, working in close cooperation with each and every one of our members - the state and territory associations together with the Government of the ACT. I will discuss our approach later in this report.

The first six months of the reporting period were largely occupied with securing key commitments from the major parties in the lead up to the October Federal election. ALGA's core expectations were outlined in our election document - Blueprint for Building Better Communities, officially launched on the first day of the federal election campaign.

We were successful on a number of fronts. The most significant of these was the renewal of the Roads to Recovery program, providing a further $1.35bn to help all councils address the serious backlog of road maintenance and renewal work. This was a major achievement for ALGA, state associations and individual councils.

Highlights of Coalition election commitments to local government included:

  • Roads to Recovery program renewed for another four years with a further $1.35bn for local roads
  • A commitment to an intergovernmental agreement to bring a more ordered and transparent approach to coordinating the responsibilities of Australian, state/territory and local government functions
  • Scrapping of a controversial proposal to use one third of each council's allocation to fund the strategic road pool - as outlined in the AusLink white paper
  • Additional $90m to fund the Black Spot road safety program
    - Councils eligible to bid for a new $2bn Australian Water Fund including a $1.6bn funding pool to accelerate smart technologies and practices in water use across Australia
  • Additional $146m over four years, including $33m for two new 'Sustainable Regions'
  • $15m for councils for purchase of facilities to attract/retain doctors in regional areas
  • Recognition that policy relating to development assessment reform can only be developed and driven with 'the full support of local councils and local communities'
  • $33m for a local government emergency management initiative - Working Together to Manage Emergencies
  • $50m to assist councils streamline reduce regulatory complexity and compliance requirements for the home-based business sector.
  • $30m in additional funding for the national community crime prevention programs, including a $10m 'top up' for a grants scheme open to local government and community groups

ALGA worked hard to ensure these promises were made good in the Federal Budget brought down in May this year. No delays. No slippage. No 'core' and 'non-core' promises. It isn't always the case.

The significance of these measures should not be lost. The Australian Government is clearly willing to engage local government as a partner as it moves to address issues of national significance. This augurs well for the future.

Are we seeing a major change in the nature of federation, with the federal government playing a more centralist role and looking beyond state governments for service providers? The answer is undoubtedly yes, though the Prime Minister tempered when he addressed the National General Assembly of Local Government in 2004. He emphasised a pragmatic approach, saying his government would work more closely with local government when that option was clearly the most practical. He said that people didn't care what sphere of government was responsible for service provision, as long as the job was done. This represents both a challenge and opportunity for local government as we move into the 21st century.

Cost shifting

Since the advent of the federal election, ALGA's attention has firmly focused on the Australian Government's long-awaited and well-mulled response to the Fair Share report on cost shifting and local government financing. ALGA held a string of meetings with Federal Local Government Minister Jim Lloyd in advance of the formal release of the Government's response to the report, which was conducted at a joint press conference with ALGA in June 2005.

The response is critically important to local government. Though 'minimalist' in scope, it did commit the Australian Government to four key actions:

The Australian Government's response has four key components:

  1. Intergovernmental agreement on cost shifting
  2. Productivity Commission study on barriers to local government revenue
  3. Recognition of local government by both Houses of Federal Parliament
  4. Review of interstate distribution of the identified roads component of financial assistance grants

In addition, Minister Lloyd has committed the Australian Government to "explore opportunities to further develop partnerships with local government to the benefit of local communities".

Fair treatment!

The development of an intergovernmental agreement to counter cost shifting has the potential to make a real difference on the ground. After all, cost shifting is estimated to make a $500m to $1.1bn dent in council finances each and every year. The task ahead is to ensure we get an agreement with 'teeth' - an agreement that secures fair treatment for local government in our dealings with our bigger "brothers".

The ALGA Board spent much time during 2004-05 focussing on what kind of IGA we need to achieve this. With the assistance of the secretariat and consultant, KA Corke and Associates, we examined various options and settled on a model that aims to achieve four things:

  • secures an agreement that the three spheres of government will work together on who does what;
  • establishes principles that guide decision-making;
  • ensures the deals made with local government are adequately funded, and most importantly;
  • provides assurance that the deals we reach actually 'stick'.

We must now persuade our federal and state counterparts that an IGA encompassing these elements is in the best interests of all three spheres of government and the communities we collectively serve. No easy task, particularly given the ambivalence towards the IGA displayed by some state governments. Nonetheless, there is broad understanding of the need for such an agreement and some genuine willingness to tackle the persistent problems faced by councils.

Fair funding!

While negotiations continue, its important that we begin to build momentum for 'fair funding' - that is, ensuring our core federal funding - financial assistance grants - is linked to an adjustment mechanism that gives us real revenue growth.

We argue that financial assistance grants need to be replaced with a system that gives us real funding growth. We argue that a share of at least 1% of Commonwealth taxation revenue would achieve this, providing an additional $400m in its first year of operation.

There is some evidence that the campaign for fair funding is gaining some momentum. The terms of reference for the Fair Share inquiry into cost shifting required that the recommendations be cost neutral to the Commonwealth. The signal to local government was simple. The Australian Government was willing to look at ways to make life easier for local government, as long as it did not involve the outlay of significant additional funding.

This, I believe, was true at the time. Indeed, there are some within the Australian Government who have taken the view that local government has done well with Roads to Recovery, is getting action on cost shifting and should now be "happy with their lot". Indeed, we have seen at least one minister argue that the Australian Government is now providing local government with a one per cent share of taxation revenue. This is somewhat mischievous. That one per cent includes FAGs, Roads to Recovery and other special purpose payments and grant schemes.

Of course, ALGA's case is that the methodology used to annually adjust the value of FAGs is manifestly inadequate and must be reformed to provide councils with funding levels that grow to reflect the increasing demands made on councils for infrastructure and services. It is an argument that is unrelated to the specific purpose payments that the Commonwealth makes from time to time to local government to address specific areas of need or meet specific Commonwealth objectives.

The Prime Minister has undertaken to look at ALGA's case. Labor is sounding sympathetic. Local government must now build pressure for change. The critical year, however, will not in the coming year, 2006, but the election year, 2007. We must now lay the foundation for significant new commitments from the major parties in advance of that election.

To this end, ALGA, in consultation with the state associations, is commissioning a major piece of economic research to underpin our lobbying efforts with the major parties during 2006. To accompany this work, we will need to win the backing of the backbench for a new deal for councils, just as we did with the Roads to Recovery campaign. Federal MPs from both sides need to champion our cause - not be threatened by it.

Formal recognition!

A longer term objective for local government is the achievement of formal recognition in the Australian Constitution. During 2004-05, a number of activities were undertaken to move us a little closer to our objective. The ALGA Board spent some time considering what form of constitutional recognition would best local government. One view is that recognition should take the form of an acknowledgement of local government as an important and legitimate sphere of government within the Australian federation. However, this does not fit the format of the existing document. Another suggestion is that a simple sentence be inserted into section 51 which would provide councils with some form of protection against interference or dismissal without due process.

ALGA encourages further debate within local government about the form constitutional recognition might take. One further development, of course, is the Australian Government's commitment to a resolution of recognition by both Houses of Federal Parliament. ALGA views this as an important stepping stone towards Constitutional recognition. The last referendum on recognition of local government was defeated in 1988 principally because the Coalition chose to oppose it - as they did three other referendum proposals that were put to the people at the same time.

With bipartisan support for parliamentary recognition, we have laid the foundation for bipartisan support for Constitutional recognition. How could a party oppose constitutional recognition once they have supported parliamentary recognition? My view is that constitutional recognition will be achieved - as Sir Humphrey Appleby might say - in the fullness of time. But we won't be successful unless we continue to prepare and push for recognition. I will ensure ALGA maintains its' commitment to the achievement of this goal.

What lies ahead?

The past 12 months has been one of significant achievement tempered by realistic expectation. Our goals of fair funding, fair treatment and formal recognition are not going to fall into our lap. The coming 12 months will be challenging. Make no mistake. But it will again be a critical period requiring careful positioning of local government in advance of the 2007 election. Yes, we are scaling Everest, but we're not going up the North Face. We are taking sensible, practical routes, stage by stage, step by step. In doing so, we will ultimately reach our goal.

  • Cr Paul Bell AM
  • ALGA President

Chief Executive's report

2004-05 has been a year of solid achievement for ALGA, with a number of key goals achieved through election commitments and subsequent confirmation in the 2005-06 Federal Budget, brought down in May. We are now re-grouping and re-focussing our efforts on securing an intergovernmental agreement that introduces real change in our financial relations with state and federal governments. We are also pursuing our 'fair funding' and 'formal recognition' campaigns, as outlined by the President in the preceding report.

ALGA represents local government through its membership of no less than 14 ministerial councils and their supporting committees of officials, as well as the Council of Australian Governments and its various officials groups. In particular, COAG is undertaking, at any one time, a number of reviews and studies, all of which require very high level participation. We also attend and participate in a significant number of other forums, such as the Landcare Council, the National Public Health Partnership and Austroads.

Importantly, ALGA spends much time liaising with senior officials in key departments, principally the Department of Transport and Regional Services, but also other departments, such as Treasury, Environment and Heritage, Prime Minister and Cabinet, Attorney-General, Communications, Industry and the Arts (DCITA) and Health and Ageing.

We have a growing number of partnerships with the Australian Government. These include:

  • Roads to Recovery/AusLink - we have worked closely with the Australian Government to address a range of implementation issues in a cooperative and constructive way as the second program - R2R2 - is put into place.
  • Austroads - ALGA continues to build its partnership with Austroads, which includes a number of direct benefits for individual councils.
  • Ageing - the Federal Ageing Minister Julie Bishop has provided $450,000 to ALGA to develop and implement an ageing strategy for local government. This multifaceted initiative has been highly successful to date, providing councils with options and strategic information to handle the challenges and opportunities posed by an ageing population.
  • The Australian Government has funded a national natural resource management facilitator position with ALGA to support and promote NRM activities in local government.
  • Emergency Management - ALGA has secured federal funding for a national project under the Working Together to Manage Emergencies initiative.
  • Broadband - ALGA is working with the Australian Government to enhance broadband uptake by local government in regional areas.

ALGA has also worked hard to strengthen its communications with stakeholders over the past 12 months. We have again improved the format for our cutting-edge html newsletter, ALGA News, with a subsequent increase in subscribers. The website continues to grow and improve, with visitor numbers growing each month. The weekly news sheet for Board members, Friday Fax, continues to be well received by its target audience.

The Networking the Nation program came to an end during the reporting period, with a range of substantial achievements racked up over the course of the program. ALGA's Director of Online Services, Rick Molony, helped to drive our NTN program over the past three years, doing much to enhance the cause of 'joined up' government and interoperability. The close work undertaken with state associations ensured a range of national projects were completed to the benefit of local government the general public. These are well documented on our dedicated ICT website - LG Connect. National projects included:

  • cross jurisdictional exchange of land information
  • local government services thesaurus
  • creation of a development application lodgement and assessment interface between state and local government for sub-division applications
  • knowledge management project
  • shared service model for council back-end systems
  • directional roadmap for IT service delivery

Our task is now to ensure the momentum achieved through the NTN program is carried forward. During the year, ALGA developed a proposal, now lodged, for the consideration of the Australian Government. The Better Rural Services project plan seeks additional funding to help rural councils enhance service delivery through investment in ICT. It is an important proposal that will, we believe, be given serious consideration by the Commonwealth.

During 2004-05, ALGA hosted the National Local Roads Congress in the Barossa Valley (July 2004) and the National General Assembly of Local Government in Canberra (November 2004). Both events attracted large numbers of delegates and positive feedback from participants. We continue to monitor and finetune these events to keep them responsive to the needs and expectations of local government.

ALGA's financial position remains strong. During the year, we were able to complete a much-needed refurbishment of the ALGA offices in Canberra, the first since the building's completion in 1987. This has ensured much more effective and efficient use of floor space, better working conditions for staff and much more acceptable meeting places in which to conduct our business.

Our political relations with both sides of the political divide in Canberra are excellent. There is plenty of goodwill towards local government in general, and ALGA in particular. There is an increasing understanding that councils are under fiscal pressure and deserve a better deal. But we need to ensure this goodwill and understanding translates into positive change for councils and communities. While we are sometimes frustrated at the slow pace of change, we need to be mindful of the importance of applying the right pressure at the right places, at the right time. We have secured some important wins. More are on the horizon. The next 18 months will be critical to advancing our agenda for fair funding, fair treatment and formal recognition.

Finally, I wish to place on record my appreciation of the tireless efforts of ALGA's staff team. Largely working behind the scenes, our fifteen staff members consistently punch way above their weight in authoritatively representing local government in Canberra across a very wide array of issues. They collectively work long and hard to fulfil the demanding expectations of their Chief Executive and Board. In particular, John Pritchard as Executive Director of Policy and Research, is an unsung hero, delivering time and time again for local government at the national level. Few would know the issues and challenges local government faces at the national level as well as John. I am both privileged and proud to have had the opportunity to work alongside professional colleagues of this calibre.

  • Ian Chalmers
  • Chief Executive

Statement of financial position

  2005 $ 2004 $ 2003 $
Current assets
Cash 418,832.00 352,295.00 103,720.00
Receivables 207,020.00 329,306.00 344,280.00
Other financial assets 2,300,000.00 3,258,401.00 3,616,484.00
Total current assets 2,925,852.00 3,940,002.00 4,064,484.00
 
Non-current assets
Property, plant and equipment 1,376,197.00 997,084.00 1,026,716.00
Total non-current assets 1,376,197.00 997,084.00 1,026,716.00
       
Total assets 4,302,049.00 4,937,086.00 5,091,200.00
 
Current liabilities
Payables 1,788,685.00 2,340,048.00 2,751,096.00
Provisions 161,322.00 128,747.00 84,769.00
 
Total liabilities 1,950,007.00 2,468,795.00 2,835,865.00
 
Net assets 2,352,042.00 2,468,291.00 2,255,335.00
       
 
Association funds
Retained profits 2,352,040.00 1,968,291.00 1,905,335.00
Reserves - 500,000.00 350,000.00
 
Total Association funds 2,352,040.00 2,468,291.00 2,255,335.00

Company directors

The names and particulars of the directors of the Company in office at any time during or since the end of the financial year are:

President: Cr Paul BELL AM
President - Local Government Association of Queensland
(Director since 5 September 2000)

Vice President: Cr Bill MITCHELL
President - Western Australia Local Government Association
(Director since 6 November 2002)

Vice President: Cr Geoff LAKE
President - Municipal Association of Victoria
(Director since 10 September 2004)

Directors

Cr Bob ABBOT
Junior Vice President - Local Government Association of Queensland
(Director since 21 January 2005)

Cr Max AMBER
Past President - Local Government Association of South Australia
(Director since 22 October 2002)

Cr Ann BENNISON
Senior Vice President - Local Government Association of Queensland
(Director since 17 May 2004)

Mr Simon CORBELL
Member - ACT Legislative Assembly
(Director since 28 November 2001)

Cr Jenny DALE
Councillor - Municipal Association of Victoria
(Director since 3 December 2004)

Mr Gibson FARMER
Past Vice President - Local Government Association of the Northern Territory
(Director from 6 November 2002 to 14 October 2004)

Mr John HARGREAVES
Member - ACT Legislative Assembly
(Director since 4 November 2004)

Cr Paul KELLY
Deputy President - Western Australia Local Government Association
(Director since 9 November 2004)

Mayor Frances KILGARIFF
Past President - Local Government Association of the Northern Territory (Director from 7 June 2004 to 31 May 2005)

Cr Robert LEGGE
Vice President - Local Government Association of Tasmania
(Director since 31 May 2002)

Cr John LEGOE
President - Local Government Association of South Australia
(Director since 26 November 2003)

Cr Lynn MASON
President - Local Government Association of Tasmania
(Director since 12 June 2000)

Cr Phyllis MILLER
President - Shires Association of New South Wales
(Director since 10 November 2004)

Alderman Kerry MOIR
President - Local Government Association of the Northern Territory
(Director since 31 May 2005)

Cr Mike MONTGOMERY
Past President - Shires Association of New South Wales
(Director from 31 May 2001 to 10 November 2004)

Cr Dr Sara MURRAY
Past President - Local Government Association of New South Wales
(Director since 7 May 2004)

Mayor Rae PERRY
Councillor - Municipal Association of Victoria
(Director from 6 November 2002 to 27 November 2004)

Cr Clive ROBARTSON
Past President - Western Australian Local Government Association
(Director from 6 December 2000 to 9 November 2004)

Mr Bill WOOD
Member - ACT Legislative Assembly
(Director from 28 November 2001 to 4 November 2004)

Cr Ray WOOLDRIDGE
Vice President - Local Government Association of the Northern Territory
(Director since 14 October 2004)

Alternate Directors

Mr Gordon DAVIDSON
ACT Government
(Alternate Director for Mr Simon Corbell since 26 February 2004)

Ms Sue ROSS
ACT Government
(Alternate Director for Mr Bill Wood from 26 February 2004 to 4 November 2004)
(Alternate Director for Mr John Hargreaves from 4 November 2004 to 2 May 2005)

Mr Mike ZISSLER
ACT Government
(Alternate Director for Mr John Hargreaves since 2 May 2005)

 
Page last updated: 2 November 2005