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Changes in Local Government

PRESIDENT'S COMMENT (LG Focus Magazine)

Alderman Kerry Moir, LGA of the Northern Territory

They say that change comes in waves but at the moment it feels a bit like we've had a tsunami in the Northern Territory.

Not only is local government going through the rigours of structural reform which will see our 63 councils reduced down to 13 (4 municipal councils and 9 shires) by July 2008 but we are also having to contend with the impacts of the Federal interventions. As one commentator said ' it is a bit like when indigenous affairs was turned on its head in the Northern Territory in 1972 during Whitlam's reign. Missions and government settlements were no longer in vogue and were forced to be replaced by local administrations. Some would say the good parts of their operations were thrown out in place of the new order.’

At the time this was considered to be monumental change. It led to the formation of many 'association' councils. Some of our member councils still have this status due in part to local government incorporation being largely a voluntary process since the introduction of the Local Government Act ('the Act')in 1978.

Since 1972 there has been some reform but nothing in the order of what is now being planned. In 1985 the Act was amended with strong elements of ‘general competence’ being embodied. The new changes that are currently being proposed, however, are going to be much more prescriptive, especially for the new shires.

Our members not only have to deal with the difficult issues associated with the transition to new local government but also must make assessments about the Commonwealth's plans as well. Policy action from both spheres of government are going to have profound effects on the size, shape and sustainability (to coin a phrase from our Queensland colleagues) of local government in the Northern Territory.

One issue that is going to affect the majority of our rural and remote councils is the recent shock announcement by the Australian Government re cessation of community development employment projects (CDEP) by July 2008. In operation for 30 years it is now to be replaced by other employment programs in the form of Work-for-the-Dole and Structured Training and Employment Projects (STEP) as a means of progressing full time employment for Indigenous people.

Councils express major concerns over the loss of jobs which will come with the cessation of CDEP projects. Councils themselves will lose a major source of revenue. For some councils CDEP constitutes 50% of their budgets and while potentially some funding may be made up from these other programs the general assessment amongst councils is that there will be real gaps in the deal. For its part the Local Government Association of the Northern Territory ('the Association') will be seeking solutions with the Australian Government on the issue of funding for full-time employment for Indigenous council employees.

The changes in the Northern Territory raise some interesting questions about the Inter-Governmental Agreement Establishing Principles Guiding Inter-Governmental Relations On Local Government Matters ('the Agreement').

One matter that the Association is considering putting to the Australian Local Government Association is whether the fundamental principles of the Agreement should be altered to deal with Australian, State and Territory governments compulsorily removing services or functions from local governments. The Agreement is strong on issues of impositions on local governments but not so in terms of them being removed. Food for thought….