Issue 3, May 2011

May: a month of budgets

First this month the Coalition delivered its State Budget, with funding for many of its election commitments. I was particularly pleased to see the $20 million Green Lights funding over four years, which responded to the MAV/local government ‘Give Our Streets the Green Light’ campaign of 2010. Congratulations to all councils who got involved in this advocacy effort, and a particular acknowledgement to Maribyrnong City Council who helped the MAV to develop the campaign.

Other funding of note included the $160 million for country roads and bridges; two separate $100 million grant programs over four years for rural and regional councils as part of the new Regional Growth Fund; $15 million for kindergarten infrastructure; and funding for a new urban planning strategy. The MAV also expressed our disappointment at the Government bringing forward landfill levy increases by 12 months without any notification to councils who must collect it, or a plan detailing how the extra levy will be used.

Then followed the Federal Budget, with a slightly trimmed Low Carbon Communities program - down from the $80 million Gillard election commitment to $69.75 million. This program will offer competitive grants to councils to cut pollution and reduce energy costs through efficient upgrades to street lighting, community facilities and council buildings, with $28 million available in 2011-12. The MAV will be holding discussions with governments to try and get some alignment between these Commonwealth and State programs.

But the biggest Federal Budget item of note for local government was the review of Financial Assistance Grants by 2012-13. This review provides both potential gains and risks for Victorian councils. While it gives us an opportunity to argue for an overall increase in funding and a cost escalator which better reflects our cost drivers; the current distribution model between the states advantages highly populated states like Victoria. The MAV will advocate for the review to consider the overall quantum of funding, not just the distribution between states and councils. We will also keep councils informed as the review progresses and provide opportunities for input into a sector response.

Council budgets are also in full swing and trying to strike the right balance between service delivery and affordability, with many local budgets already out for public comment. This week the MAV has released our 2011 Local Government Cost Index, which forecasts a 3.6 per cent average increase in costs for councils to maintain the status quo. A media release, fact sheets and summary report have been published to help inform communities about council cost movements, other external cost pressures and why council budgets are not linked to CPI.

Working with government

The MAV has met with Minister Powell’s office to progress the formalisation of a new Victorian State-Local Government Agreement (VSLGA) to underpin a cooperative ongoing partnership approach for consultation, negotiation and funding arrangements between our two levels of government.

This month we also met with Peter Ryan, Deputy Premier; Matthew Guy, Minister for Planning; and hosted the joint MAV/DEECD Youth Forum where Peter Hall, Minister for Higher Education and Skills released a new set of Adolescent Community Indicators.

Our first meeting with the Planning Minister was positive, and he was very receptive to a number of issues raised by the MAV. Minister Guy expressed his willingness to participate in a major planning event to be organized by the MAV; agreed to meet with a delegation of Mayors and CEOs from councils affected by wind farms; and to work with the MAV and councils to test thinking about the new Residential Zones and options developed for the review of planning fees.

So it was surprising to see this week’s 25 storey (80 metre) development in Footscray, which is more than double the planning scheme guidelines for the site and at odds with the council and community position as agreed through the precinct structure plan. This is the third such decision by the Minister in as many weeks and I’ve received concerned feedback from many councils about the Minister’s apparent ad-hoc approach. It appears he is running contrary to the Coalition’s election commitment of valuing local knowledge and community input rights, and bringing openness and certainty to the planning system.

Meanwhile, the development of a risk-based model for electric line clearance is making steady progress, with expert consultants engaged by the MAV working on a draft methodology that will allow councils some variation from the regulated clearance spaces. I’d like to acknowledge and thank the pilot councils who continue to inform the development of a methodology, and in particular the City of Stonnington who has played a leading role. It’s pleasing that at a recent site visit, Minister O’Brien expressed his willingness to work on alternative solutions with the sector that will deliver the same safety outcomes as intended by the Electricity Safety (Electric Line Clearance) Regulations 2010 and Code of Practice.

Reforming local government

The MAV’s submission on the direct election of a Geelong mayor has raised concerns about the apparent lack of rationale; and the need for a mechanism to ensure fair and equitable opportunities for all potential candidates, not just those who already have a public image or can fund a high profile campaign. The MAV has also queried whether a directly-elected mayor would be a full time role incurring an increased allowance; sought clarity about any intention to formalize the role of Deputy Mayor; urged the Government to undertake a comprehensive review prior to proposing a model that changes the status quo; and the need for appropriate community triggers for a change from the current model to a directly-elected model.

Other reforms are also afoot for the sector. The Government is working on legislation to bring forward council elections, which directly responded to an MAV State Council motion; and we’re also seeing a number of communities calling for a split with their municipality, or amalgamation with a neighbor. While the Minister has brought forward an Electoral Representation Review in Latrobe to address local issues, the Coalition also committed during last year’s election to change the legislation to allow a vote on whether Sunbury should remain with Hume City Council. We can expect to hear more about these reform issues.

The MAV also recommends that councils keep an eye on the recently announced Victorian Competition and Efficiency Commission inquiry into the state-based reform agenda for Victoria. This broad ranging inquiry will benchmark state taxes, regulations, workforce participation, economic infrastructure, skills and innovation, and examine policy options aimed at improving productivity growth, which has slowed considerably across Australia over the past decade. It is likely that local government’s functions and responsibilities will fall within the scope of the inquiry, which may lead to a broader reform agenda for local government developing. The MAV has met with the review team and expects an issues paper to be released shortly. We will continue to keep members updated on the progress of the review.

Step Asset Management Program goes international

More than 300 delegates attended the MAV’s recent national Asset Management Conference, including a 19 member Knowledge Tour from the Department of Municipal Affairs in Abu Dhabi, and a party of 20 from Dubai. Our international guests showed a high level of interest in a number of MAV initiatives and we formalised an ongoing strategic partnership with the Municipality of Abu Dhabi, including participation in our Step Asset Management Program.

Attracting overseas interest is great recognition of the program’s value in building sector capacity and asset management knowledge, as well as its role in helping to reduce infrastructure backlogs. Victorian councils should be proud of the national leadership we have shown in this area to improve our performance.

Meeting with Minister Garrett on kindergarten reforms

Earlier this month the MAV met with Minister Garrett, Federal Minister for Early Childhood about the national kindergarten reforms and Victoria’s concerns about the 2013 deadline in the absence of appropriate capital and workforce funding. We agreed to provide the Minister with further evidence about the infrastructure funding needs of local government, and to work on a roadmap to facilitate the reform, which is likely to progress at different rates in different parts of the State. The MAV will be seeking the cooperation of councils in providing further information to help us advance a solution with Minister Garrett to deliver the national reforms in Victoria.

The Herald Sun also featured this story and opinion editorial about the growing trend in kinder programs offering Saturday timetables, which included MAV comments on the need for more funding to provide enough facilities to meet the national reform targets. Alternative options, including Saturday timetables continue to be a viable option being explored by many councils, as highlighted in this third Herald Sun story.

National General Assembly

There’s only a few weeks to go until the ALGA National General Assembly takes place in Canberra from 19 to 22 June. This also incorporates the Regional Cooperation and Development Forum, and the release of the State of the Regions Report.

Senior politicians from all parties will be speaking, including the Prime Minister, and the public campaign to position us prior to a referendum on constitutional recognition will also be a feature of this year’s program. I hope to see many of you there. Further program and registration details are available on the National General Assembly webpage.

Regards

BILL