The Local Government Review Panel (Panel) was formed to undertake a comprehensive review of the Local Government Act 1995 (WA) (LG Act), with a vision that local government be agile, smart and inclusive.
The Panel, chaired by David Michael MLA, provided its final report to the State Government in May 2020, which outlines 65 recommendations for a new Act. The State Government released the report publicly in August 2020.
The Panel considered the themes of clear legislative intent, an agile system, inclusive local democracy, smart planning and efficient service delivery, and enhanced accountability, self-regulation and integrity.
In Part 1 of this series, we focused on the recommendations relating to Council governance. In Part 2, we summarise the recommended high-level reforms relating to local government operations.
Part 2 – Local Government Operations
1. Local Government Commission
Current: There are 2 separate statutory bodies – the Local Government Grants Commission, which is responsible for making recommendations to the Minister for Local Government (Minister) on the allocation of Commonwealth financial assistance grants; and the Local Government Advisory Board, which advises the Minister on local government constitutional matters.
Proposed: The existing bodies be combined into a single Local Government Commission (LGC) and that it have a more strategic role to promote and facilitate capacity building and continuous improvement across the sector, with structural reform (including mergers) if necessary. Its functions would include monitoring the overall health and performance of the sector by identifying key issues and trends, as well as the existing functions of recommending major local government boundary changes and managing the distribution of Commonwealth grant funding to local governments.
2. Roles Defined
Current: The LG Act captures the role of the Council, mayor or president, deputy mayor or deputy president, and the role of councillors.
Proposed: The roles and responsibilities for the Council, mayor or president, individual councillors and CEOs be better defined. In addition, a new statement of responsibilities be included in the new Act for the Council, which captures the roles and responsibilities of all councillors acting collectively as the Council.
3. Early Intervention
Current: No early intervention framework for monitoring of local governments exists under the LG Act. The Minister may intervene if the Minister reaches the conclusion that it is inappropriate for a Council to act without intervention. The Minister also has power to suspend a Council, or require one or more of its members to undertake specified remedial action.
Proposed: There should be an early intervention framework of monitoring to support local governments that are experiencing governance or operational problems. The department would assist Councils to remedy weaknesses and provide mentoring and support, with a view to building local government's capacity. The model proposes that the department may appoint a monitor to support a local government that is experiencing these types of issues.
The local government would be responsible for the direct costs of the monitor. The roles of the monitor are to provide advice to the Council, report to the department, and make recommendations to the Minister for further action. The monitor may temporarily take over certain functions of local government when good governance practices are not being adopted, or services are not being delivered to sections of the community.
4. Engaging with Aboriginal Communities
Current: There are requirements for local governments to recognise the general diversity of communities. However, there is no requirement to specifically recognise the unique role of Aboriginal people in the community, or the potential role of local government in partnering to achieve outcomes with them.
Proposed: The new Act should recognise the unique status of Aboriginal people as traditional owners of the land. It should also ensure they are empowered to engage in decision-making by local governments in their local communities. In particular, the new Act should specifically require local governments to plan for the delivery of, and provide, essential services to local Aboriginal communities, including remote communities (where applicable).
5. Subsidiaries
Current: The formal approaches to broader regional cooperation are regional local governments and regional subsidiaries. A regional council is when 2 or more local governments establish a regional local government for any purpose for which a local government can do things under the LG Act. A regional subsidiary is managed by a board, governed by a charter, and is a separate legal entity.
Proposed: A single model of collaboration between local governments, which would reduce complexity and provide for a more tailored compliance regime. A flexible model of joint and single subsidiaries should be introduced. Joint subsidiaries would enable collaboration. Single subsidiaries would allow local governments the flexibility to operate on a commercial basis, with adequate controls in place such as: community consultation, model charters, appropriate reporting and audit measures, and providing the Minister with the power to intervene if necessary.
6. Local Laws
Current: Local laws are made by individual local governments, and the local community must be consulted in relation to any proposed local laws.
Proposed: There should be increased harmonisation of local laws, through the application of model local laws and deemed provisions (i.e. uniform local laws operating across the State). Model local laws could be amended by local government to address limited local matters. These measures would provide for greater consistency across the State, and reduce the need for local government to develop their own laws.
The Parliamentary Joint Standing Committee on Delegated Legislation (Committee) would approve the extent to which the model local laws and deemed provisions could be altered, without referral back to the Committee. Public consultation would not be required on these alterations and would reduce the administrative burden on local governments to consult. Local governments would have to justify to the Committee why substantial deviations are necessary or desirable.
If you would like to understand more about local government reforms, or the recommendations contained in the Panel's final report, please contact our team.
