In June 2019, the Western Australian Parliament passed the Local Government Legislation Amendment Act 2019 (WA) which introduced six key reforms to the Local Government Act 1995 (WA) (the Act). The reforms provide for:
- universal training for council members;
- treatment of gifts;
- council member behaviour and a new code of conduct;
- changes to the Local Government Standards Panel;
- introduction of standards for CEO recruitment and performance reviews; and
- greater transparency of information.
Universal training for council members
The introduction of training requirements for councillors acknowledges the unique and challenging role council members hold and aims to provide them with the skills and knowledge to be an effective council member.
All candidates standing for local election and those elected (members) will now be required to complete:
- an induction prior to nominating for election; and
- five modules of training within 12 months of election.
The five training modules are referred to as 'foundational' modules which focus on understanding local government; serving on council; meeting procedures; conflicts of interests; and understanding financial reports and budgets.
This reform also requires local governments to report annually on member training as well as develop and adopt a Professional Development Policy for its members.
This reform came into effect immediately and will apply to the upcoming October 2019 local government elections.
Treatment of gifts
The second reform implements a revised 'gifts' framework and requires:
- members and CEOs to declare any gift over $300 received in the capacity of council member or CEO; and
- all gifts to be disclosed within ten days of receipt and published on the online gift register on the council's official website.
There are also revised conflict of interest provisions that apply to all gifts over the prescribed threshold received in any capacity. This means that:
- the member who receives a gift is prevented from voting on matters concerning the donor of the gift for the period of the member's term. However, approval may be provided by the council or Minister for the member to participate where the gift does not exceed $1,000. The Minister's approval will be required for gifts over $1,000; and
- a CEO who receives a gift in a matter the CEO proposes to provide advice on to the council or a committee must give written disclosure of the gift and is prevented from giving advice on a matter involving the donor. However, approval may be provided to the CEO by the council or Minister in certain circumstances.
This reform also includes provisions relating to gifts of event tickets. Local governments will be required to have a policy that deals with attendance at events as a representative of council. A gift of a ticket to an event in accordance with the policy will be exempt from the conflict of interest provisions. However, local governments should be aware that the ticket/s must be provided to council, and not individual council members.
Regulations implementing these changes are expected to be introduced by the end of 2019. Local governments should ensure their employees and members are well informed of their obligations and the council provides regular education on the treatment of gifts. It will be particularly pertinent for local governments to comply with this change, given the current level of public scrutiny regarding public officials failing to disclose gifts.
Council member behaviour and a new code of conduct
Local governments must introduce a mandatory code of conduct to address the behaviour of members and candidates, and will be required to publish this code of conduct online. The content of this code will be prescribed by regulation and will apply to existing members as well as candidates standing in local elections.
The WA Government intends to undertake further consultation on developing model codes of conduct and this reform is expected to come into effect in early 2020.
This focus on member conduct follows on from the introduction of new laws in 2018 which empowered the Minister to suspend or potentially dismiss individual councillors found to have engaged in conduct which adversely impacts on the functioning of a local government.
Changes to the Local Government Standards Panel
The fourth reform provides greater power to the Local Government Standards Panel (the Panel). It introduces the power for the Panel to request mediation between parties. The willingness of the parties and success of the mediation will form part of the Panel's consideration on any sanctions. The Panel will also be able to order the member/s to reimburse the local government's costs if an adverse finding is made.
The time for making complaints to the Panel for minor breaches has been reduced from two years to six months.
Confidentiality of complaints has also been extended to include minor breaches, serious breaches and recurrent breaches. The confidentiality requirement will apply to:
- the person who makes a complaint;
- the person against whom a complaint is made;
- anyone who performs a function under the Act in respect of a complaint; and
- anyone who becomes aware of any detail of a complaint knowing it to be relevant to the complaint.
This reform came into effect immediately. Local governments and their employees and members should be made aware of, and sensitive to, these confidentiality provisions when a complaint has been made to the Panel.
Standards for CEO recruitment
Local governments will be required to adopt minimum standards in relation to recruitment, selection, performance review and early termination of a CEO. Local governments will also require a policy for filling a temporary CEO vacancy.
The Government intends to undertake further consultation before developing the standards, which are expected to come into effect in early 2020. Once implemented, local governments may need to amend their recruitment, selection and performance review policies and initiatives to comply.
Greater transparency of information
The last reform reflects contemporary advancements in ways to communicate, particularly with the rise of the internet. It requires local government information to be more readily available in order to better meet community expectations for accountability and transparency.
Information that is currently only required to be available at a local government's office will now be required to be published on the local government's website. The website will also be required to include:
- a map showing district and ward boundaries;
- the annual budget;
- consolidated local laws;
- plans for the future;
- minutes and agendas; and
- Councillor attendance and allowances.
This reform came into effect immediately and local governments need to ensure their websites are up dated to comply with this requirement.
In addition, public notices required to be published by the Act will now be required to be published on the local government's website. Regulations prescribing this are expected to come into effect in late 2019.