The Federal government put out an enquiry into Local Government and Cost Shifting, found at http://www.aph.gov.au/house/committee/efpa/localgovt/tor.htm Details follow : Inquiry into Local Government and Cost Shifting Standing Committee on Economics, Finance and Public Administration Inquiry into Local Government and Cost Shifting Terms of reference The Minister for Regional Services, Territories and Local Government has asked the Committee to inquire into: Cost shifting onto local government by state governments and the financial position of local government. This will include an examination of: 1. Local government's current roles and responsibilities. 2. Current funding arrangements for local government, including allocation of funding from other levels of government and utilisation of alternative funding sources by local government. 3. The capacity of local government to meet existing obligations and to take on an enhanced role in developing opportunities at a regional level including opportunities for councils to work with other councils and pool funding to achieve regional outcomes. 4. Local government expenditure and the impact on local government's financial capacity as a result of changes in the powers, functions and responsibilities between state and local governments. 5. The scope for achieving a rationalisation of roles and responsibilities between the levels of government, better use of resources and better quality services to local communities. 6. The findings of the Commonwealth Grants Commission Review of the Local Government (Financial Assistance) Act 1995 of June 2001, taking into account the views of interested parties as sought by the Committee. The inquiry is to be conducted on the basis that the outcomes will be budget neutral for the Commonwealth. Comments to: Committee Secretary on PH: 02 6277 4587 or FAX: 02 6277 4774 or e-mail: EFPA.Reps@aph.gov.au -- Bob Buick received a letter from Wilson Tuckey providing further detail : > The Hon Wilson Tuckey MP > Minister for Regional Services, Territories and Local Government > Dear Mr Buick > Thank you for your letter of 21 May 2002 concerning your view that there > is strengthening opinion that Australia should reduce government from > three tiers to two by abolishing state governments. Your letter > included some interesting proposals on how this might be achieved. I > regret the delay in replying. > On 30 May 2002 I announced a major Inquiry into Local Government. The > Inquiry will focus on cost shifting onto Local Government by State > governments and the role, responsibilities and financial position of > Local Government. It will be conducted by the House of Representatives > Standing Committee on Economics, Finance and Public Administration, > chaired by David Hawker MP. A copy of my media release on the Inquiry > that includes the terms of reference is attached [not in this bulletin - > JA]. > The Inquiry will deliver on the Howard Government's election commitment > to review the incidence of cost-shifting from State to Local Government. > Over many years I have observed Local Government becoming more involved > both financially and administratively in services such as supplying > doctors and public and property protection, picking up increased > unfunded responsibilities from the States and providing many other > services for which State Governments have the constitutional > responsibility. Local Government is often forced to pick up the cost of > services for which State governments receive significant funding from > the Commonwealth Government to provide. amounted to around $46.7 > billion in 2001-02. This includes payments for services such as health > care, schools, housing, roads and home and community care. By > comparison, Local Government received $1.4 billion in financial > assistance grants. > Further evidence of the problem can be found in the recent review by the > Commonwealth Grants Commission (CGC) of the Local Government (Financial > Assistance) Act 1995 - the Act under which financial assistance grants > are untied financial assistance in 1974, Commonwealth grants assistance > has grown by around 10.8 per cent per annum on average, whereas the > States' contributions have only grown around 6.6 per cent per annum on > average. It also found that State assistance to Local Government has > declined in relative importance over this period (ie from 15 per cent of > Local Government revenue in 1974-75 to 7 per cent in 1997-98), whereas > Commonwealth assistance had remained relatively constant (ie from 10.5 > per cent in 1974-75 to 12 per cent in 1997-98). > It is clear to me that there is a general need to address the roles and > responsibilities of Local Government, including the current funding and > other financial arrangements applying to the sector. I believe there is > considerable potential for Councils to play a greater role in the > provision of services direct to their communities and to receive due > financial recognition for so doing. Councils are, after all, best > placed in our government structure to understand and address the needs > of their people. They are closest to the community. > The Inquiry will provide the opportunity for a fundamental > re-examination of some of the most pressing issues facing Local > Government today. It will be vitally important for all stakeholders to > have their say. The Committee has invited submissions to the Inquiry > and I encourage you to take the opportunity to make a submission to > bring your ideas to the Committee's attention. Submissions are due by > 26 July 2002. Further information in relation to the Inquiry can be > found on the Committee's website at > http://www.gph.gov.au/house/committee/efpa > I attach a recent speech in which you will find further information > about my approach to these important issues as they affect Local > Government. Thank you for raising this matter with me. Yours sincerely > Wilson Tuckey Charles suggested : > ... we put together a well argued paper for the enquiry, supporting the > proposal but to point out the economies to be gained by having one, > nation-wide set of laws, one police force, one health policy, and one > education policy, in each regional or local authorities running > facilities or controlling the local arms. > We could also suggest that a study be established to determine the > ultimate delineation of local or regional boundaries. AJB writes : > I suggest Mark should write to the committee chairman indicating this > and asking to speak to the submission (i.e. give evidence) at a > committee hearing. I also think this will be a better-than-usual > opportunity to publicise the network and get major media with the > potential to actually establish a maintainable membership. So I suspect > that Beyond Fed should put its absolute best non-partisan faces forward > to do the presentation and answer questions... Rodney Hall might be > one, there are others. Max should be out front because he comes from > local govt. > I will be writing separately to do the same in light of our research > program, we can dovetail on media if on the same day or if not then get > double-whammy. > If done well, we can all add some serious cred to these issues which are > otherwise likely to disappear in a blaze of tacky fed-state politicking. Simon Bastin expressed a more negative sentiment : > I think this is a straw man to divert attention from some other issue. > There is currently no mechanism for direct contact between Federal and > local govt. Max mentions "Federal Assistance Grants", so while Simon mentions "direct" contact, there may well be other means of interaction. Jim, in reply to Simon, said : > Simon's comments are true if you look at what Wilson Tuckey said. This > should not stop us from recognising his positive contribution to our > public campaign. Certain powers would be useful over police (eg. > traffic, accountability health (eg. work now done by local boards and > local govt) and education (eg. subject input related to local > environment, social, industry and employment issues)- with certain > qualifiers (reviewed in more detail in the section "Jim's model".) At this stage, while there was a flurry of interest at the time the inquiry was released, I'm not aware of just what was forwarded to the inquiry, or what its contents were.