Transcript LGNZ Conference

Getting it Together:
Working Smarter for Stronger Local Government
Graham Sansom
UTS Centre for Local Government
The opportunity
Fiction?
Reality?
Commonwealth
Commonwealth
Local
Local
State
UTS Centre for Local Government
State
The vision…
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Local government that:
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is influential, credible and respected
generates community involvement
reflects the needs of diverse communities
communicates well and establishes partnerships
offers accountable, transparent governance
attracts high calibre people
is financially sustainable
UTS Centre for Local Government
The dangers…
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Lack of strategic direction:
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Financial weakness
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Growing competition with the States for resources
Increasing State dominance and encroachment
A retreat to a narrow role in service delivery
Grant dependence leads to ‘agency’ status
Infrastructure problems intensify
Many smaller councils become unviable
Loss of community confidence and support
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Failure to engage effectively with communities
Dissatisfaction with ‘inadequate’ performance
Councils seen as irrelevant on ‘issues that matter’
UTS Centre for Local Government
Asserting a local interest
UTS Centre for Local Government
Strengths and weaknesses
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Core business and place
focus
Informed localism and
regionalism
Larger councils and
creative diversity
Community support
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Financial autonomy
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Scattergun wish-lists
Fragmented
parochialism
Whingers and basket
cases
Disengaged
communities
Mendicant mentality
UTS Centre for Local Government
Autonomy or mendicant?
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Financial strength is fundamental to policy influence
Australian LG on average >80% self-sufficient (much
better than States)
But:
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Growth in functions has outstripped revenue:
unsustainable
Rates have failed to keep pace with State and federal
taxes: the ‘$3bn gap’
Infrastructure backlog severe
Problems of rural and remote councils
Constant calls for increased grants
UTS Centre for Local Government
Bad news from NSW
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NSW councils under-fund infrastructure renewal by
$400-600m pa: current backlog is $6.3bn
Projected backlog by 2020 is $21bn: more than 6
times current annual rates revenue
Only 1 in 5 NSW councils have an adequate asset
management plan
Most NSW councils will continue to run large operating
deficits (>8% of own source revenue), even with
increased rates and charges
1 in 4 are unsustainable without major policy changes
UTS Centre for Local Government
A Fair Share for Responsible
Local Government
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Cost Shifting Inquiry recommended:
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Improved financial governance and investigate
Australian equivalent of IDeA
Infrastructure audits and reduced FAGs in cases of
negligent management
Assessment of the potential efficiencies of
amalgamations and adjustment of FAGs for the
benefit of the sector at large
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Federal response emphasised examination of local
government’s own revenue sources
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Proposed Productivity Commission Inquiry
UTS Centre for Local Government
Sproats inquiry
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Review of local government in inner Sydney
Recommended mergers – but not primarily for
efficiency
Key drivers for reform:
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address revenue and infrastructure problems
better strategic planning
regional cooperation and whole-of-government
approaches
experimentation and innovation in service delivery
enhancing local governance and leadership
UTS Centre for Local Government
UTS: CENTRE FOR LOCAL GOVERNMENT
Community governance
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“The process by which we collectively solve
our problems and meet our society's needs”
Government is one of the instruments we
use for governance
Importance of leadership, partnerships and
cooperative planning (‘associational
governance’)
UTS Centre for Local Government
Management and governance*
AREA MANAGEMENT
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Corporate governance
Customers and clients
Administration and
regulation
Public opinion
Financial and physical
capital
(* Based on Sproats, 1997)
+ Community engagement
+ Citizens
+ Leadership and
partnerships
+ Public judgement
+ Social capital
= LOCAL GOVERNANCE
UTS Centre for Local Government
Management and leadership*
MANAGEMENT
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LEADERSHIP
Plans and budgets
Organising and staffing
Controlling and
problem-solving
Minimising risk
promotes ORDER and
PREDICTABILITY
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Vision and strategy
Communicating and
aligning
Motivating and inspiring
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Taking risks
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promotes CHANGE
(* Based on Stace and Dunphy, 1994)
UTS Centre for Local Government
Consultation debate
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Consultation reviews across NSW councils
Drivers:
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Community demands for bigger say and ideas about
‘engagement’
Legislative requirements plus voluntary processes generate
big workload
Information and opinion overload
Lack of effective policy frameworks and decision-making
procedures to make best use of input
Councillors feel bypassed – need more support in their role
Need to explore new techniques (eg residents panels) to
reach ‘silent majority’
UTS Centre for Local Government
Just Communities project
Decision-making
(political) processes
Management
frameworks
Better
local
democracy
UTS Centre for Local Government
Consultation and
engagement
Need for ‘political renewal’
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Is managerialism a dead end?:
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Time to strengthen the political arm:
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Community engagement, leadership and a broad
‘well-being’ agenda are fundamental
Blurring of roles is inevitable
(Semi) Executive Mayors?
‘Cabinet’ structures?
But equally a need to strengthen political skills:
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Partnerships, intergovernment relations
Balancing representative and participatory
democracy – consultation
‘Mutual obligation’ (accountability with respect)
UTS Centre for Local Government
“There were meetings I attended as Chief
Executive Officer where Councillors,
Council employees, community
representatives and professional
consultants contributed to the discussion
with such equal openness, candour and
participation, you couldn’t tell who was
who.”
Jude Munro
UTS Centre for Local Government
“The underlying strength of local
government lies in its potential to enrich
democracy by enabling the engagement
of voters and by demonstrating the
responsiveness of public institutions at a
time of significant cynicism about
representative government.”
Cheryl Saunders
UTS Centre for Local Government