Interim report – Department of Premier and Cabinet, 21 July 2022
The future of local government review
Executive summary
Local government has played a crucial role in supporting Tasmanian communities for more than 100 years. There is an emerging consensus that this role will become even more important in the future amid growing evidence that many complex social, economic, and environmental problems require local solutions. We saw during the COVID-19 pandemic that councils were – as they often are in times of crisis – on the front line working to ensure community needs were met and help was delivered where it was needed, and quickly.
We have heard that local communities want (and need) their councils to succeed. But the Tasmanians we have spoken with during the Review so far can also see how our current system and structures make this increasingly difficult for many councils, particularly in regional and rural communities. And it is in these communities where the role of councils is often most highly valued.
We believe there is now broad acceptance – in the community, across all key stakeholder groups, and within the sector itself – that reform is necessary not only to ensure the future success and sustainability of councils, but to support the future economic, social, and environmental wellbeing of the Tasmanian community.
As a state and a community, we need to make sure that our local councils have the necessary capability to focus and deliver on the things that matter most at the local level, in an effective, efficient, and sustainable way. We believe this will require a re-set in our thinking about the future role and functions of councils combined with a collaborative effort to design a system of local government that can deliver that vision.
The Interim Report presents the Board’s findings from its research, engagement, and discovery in Stage 1. Consistent with the Review’s Terms of Reference, it sets out the Priority Reform Areas for further exploration and investigation in Stage 2 (see Discussion Box 1 below).
We hope the Report does more than this, however. Fundamentally, we want it to drive a robust community conversation about the role that our third tier of government should play in supporting the wellbeing of the Tasmanian community into the future. This means, firstly, identifying and agreeing on the things we know local government can do better than other levels of government and then, secondly, undertaking a deliberate and careful process to shape a future system where our local councils are set up to succeed at delivering those things. Leading and guiding that process is, in a nutshell, the job the Board has been given in this Review.
No doubt, this will require some challenging conversations as the Review progresses, including about possible changes to the functions and responsibilities of local councils. But it is essential we have these conversations if we are going to meaningfully deliver on the task we have been set by our Terms of Reference.
We have made a bold start in this Report by offering up our views on the future role of local government, the set of capabilities that we think needs to be in place to support this, and the kinds of outcomes we think we can (and should) aspire to in the future. At the heart of the vision is an ambition to have local government undertake a shift – which is already underway in many cases – from a primary focus on infrastructure provision and ‘services to property’ towards a role in supporting the wellbeing, resilience, connectedness, identity, and culture of local communities.
Now we want to hear what the community thinks. It is important that, as we move into Stage 2, we are confident there is broad support and agreement on what ‘success’ for the future of local government looks like. We won’t be able to have the right kind of discussions about potential reform options unless we have this common ground.
During Stage 1, we have undertaken a comprehensive statewide engagement and research program. From all of this work, the Board has heard clearly there are a core suite of challenges and opportunities for the local government sector.
● Firstly, local, place-based design and delivery remain crucial in some service areas, particularly when it comes to supporting improved community wellbeing. Local government is in the best position to be a leader in this domain. Unfortunately, councils are often required instead to fund and deliver a broad range of functions and services its communities need and demand, even when they may not be the best tier of government to provide them.
● Secondly, and linked strongly to the first point, councils face significant pressures brought about by being a ‘government of the gaps’ or a ‘provider of last resort’ to meet service needs that are not being provided by the market or other levels of government. Clear and deliberate decisions are required about what functions and services councils should be delivering and how these can be supported by suitable funding and governance models that are designed specifically to support councils’ responsibilities on a fair and sustainable basis.
● Thirdly, there are a range of undeniable structural sustainability challenges facing councils, which will require a willingness to consider bold reform solutions. While on the one hand we have heard about the professionalism and dedication of staff within councils, we have also heard that capability and skills are spread too thinly (and unevenly) across the sector, resulting in services that are less effective, responsive and efficient than they could be if there were greater economies of scale and scope in some areas. There is broad consensus that the consolidation of some council services is necessary to achieve the scale required to improve efficiency and effectiveness. Service consolidation can take many forms and in a future model of local government may look different for different capacities, functions, and services. The Board wants to explore a range of innovative approaches that go beyond what most people think of when they hear the term ‘council amalgamations’.
● Finally, Tasmanians place significant value on local voice and representation. Therefore, community confidence and trust in local governance is essential. We believe there is opportunity to better support more consistent levels of capability and professionalism for elected representatives and in turn drive greater participation in local government. This will require an exploration of innovative reforms that maximise the overall performance of the sector in areas of service accountability, participation in decision-making, transparency, and community engagement, while remaining cognisant of the significant reforms in this area that are already underway.
Our view is that the sector needs to be supported – by both government and the community – through a process of careful and considered structural transition to ensure that it can overcome these challenges and embrace existing and emerging opportunities. This transition will take time, but it needs to start now.
Irrespective of the recommendations we will make at the conclusion of this Review, there is no doubt genuine political leadership, at all levels, will be required to deliver the changes necessary to ensure we have a highly capable sector that is able to support the State’s future prosperity and wellbeing.
Read the full report here: https://engage.futurelocal.tas.gov.au.
Media release – Nic Street, Minister for Local Government, 21 July 2022
Local Government Board releases Interim Report of Future of Local Government Review
The Minister for Local Government, Nic Street MP, and the Chair of the Local Government Board, Hon. Sue Smith AM, today released the Interim Report of the Future of Local Government Review. The report outlines the results of the Board’s engagement with the community and local government sector, and its research, during Stage 1 of the Review. It also identifies the priority reform areas that the Board will explore during Stage 2 of the Review.
Minister for Local Government Nic Street said:
“I want to thank all members of the Local Government Board for their work to date. The Review is a once in a generation opportunity to take stock of our system of local government and make sure it’s well set up to serve the community into the future.”
“The Review is one of several initiatives the Tasmanian Government has taken to strengthen and support the local government sector.
“One of my first acts as Minister was to introduce compulsory voting in council elections, which I hope will encourage more people to stand for council in October this year. I will shortly bring forward legislative changes to make the councillor Code of Conduct process more effective.
“This Review is another vital initiative that will help to build community confidence in local councils. We want to ensure that councils have the professional skills and resources they need to be able to serve their communities sustainably over the long term.”
The Chair of the Local Government Board, Hon. Sue Smith AM said:
“The Local Government Board has heard strong support from the community for local government’s role in delivering local services, and as a voice from communities to other tiers of government.
“We’ve also heard that people believe that local government is struggling to fulfill all its responsibilities, particularly the smaller councils.
“People have told us that councils need to be big enough to be sustainable, but small enough to genuinely represent their community.
“In Stage 2 of the Review, the Board will be exploring reforms that can achieve those twin aims of making local government sustainable and truly representing each local community around the state.
“A lot of the public discussion has been about council amalgamations. The Board is thinking much more broadly than simple amalgamation, where two or more councils are crunched together.
“We are looking at all the consolidation options that people have raised with us – from agreements between councils in a region to deliver shared services through to full amalgamation of councils.
“All the options are on the table. In Stage 2 we will look at how well each of those options leads to better services being delivered to communities.
“We’ve given every Tasmanian the opportunity to give us their views during Stage 1, and the Board has learnt a lot from that feedback. We want to keep hearing from you in Stage 2 of the Review progresses.”
“The Interim Report we’re releasing today includes a number of consultation questions, including some important ones on the role of local government.
“We want to keep hearing from you as we develop the list of feasible reform options we’ll be delivering at the end of Stage 2.”
Anita Dow MP, Shadow Minister for Local Government and Planning, 21 July 2022
Liberals promise local government reform but deliver glossy brochure
The Rockliff-Ferguson Government and Minister Nic Street need to get serious about reforms to local government after making big promises over almost a decade and today delivering yet another glossy brochure.
Instead of delivering yet another interim report on their promises of reform, the government needs to come clean on what they are specifically planning for their promised overhaul of councils across Tasmania.
What Mr Street has delivered today is yet more confusion and uncertainty among councils and the community, particularly around promised reform of the Code of Conduct.
Mr Street needs to tell councils and communities when he intends to finalise the review of the Code of Conduct Framework and confirm if he will introduce changes called for by the local government sector.
With council elections looming, we want Tasmanians to put their hand up and be involved in local government.
Minister Street is doing little to instil confidence or assurance to encourage people to have a career in local government. There are significant workforce shortages across the sector.
It’s time this government acted to ensure there is confidence in local government and recent concerns regarding integrity are addressed.
The local government sector and our communities are crying out for leadership from Mr Street and the Rockliff-Ferguson Government and they have failed to deliver again.
