Election Special

Article Index

There are potentially many, many issues to determine how people will vote in NSW elections on Saturday. For some voters, one issue will be enough and for others it will be a more comprehensive examination of policies. For some, of course, it will be brand loyalty.

depa is not affiliated with any political party and, as you’ve seen over the years, we are equally happy to be critical of the role of Government whether that be Coalition or Labor.

As a registered industrial organisation under the Industrial Relations Act (that’s how both unions and employer organisations are registered) we obviously have more of an interest in those things that affect our members.

We didn’t like it when the Carr Labor Government started stripping away workers’ compensation entitlements and we didn’t like it either when the O’Farrell Coalition Government made things even worse.

For the election we have asked four questions of both the Government and the Opposition. In asking the questions we provided a guarantee that the responses would be published unedited.

We have done this before and find that it’s usually easier to get a policy response from an Opposition and harder to get one from the Government - especially if the questions we’re asking are hard to answer, make them uncomfortable or press them for explicit assurances they would rather be quiet about.

Here are our four questions below. Labor also provided a PDF of their comprehensive local government policies. This is a link if you would like to explore it.

Here are two links to articles that, by coincidence, were published today in the Sydney Morning Herald.

http://www.smh.com.au/nsw/nsw-state-election-2015/first-the-carrot-then-the-stick-state-policy-on-council-amalgamations-examined-20150324-13z11t.html

http://www.smh.com.au/nsw/nsw-state-election-2015-reducing-nsws-152-councils-to-38-would-cost-445-million-modelling-shows-20150324-1m6l6s.html

1. The NSW Government’s attitude to local government

Preface

The Department of Local Government keeps getting smaller, suffering a variety of name changes and a reduction in its seniority in the Government/Cabinet and its role in the industry.

Question 1

Will the Government take steps to ensure local government as a portfolio receives a higher profile in the Government?

Coalition Government response

Under the Baird Government, the local government sector is finally receiving the attention it deserves.

For example, we have provided more than $1.5 billion in grants to help country and city councils upgrade and maintain their roads, bridges and culverts. This is the highest level of funding for local and regional roads in the state’s history, dwarfing Labor allocations in its last four financial years in government (i.e. 2007-08 to 2010-11) by more than 40 per cent.

Our Fit for the Future package is the most significant investment the State has ever made in the local government sector, and ensures that local government firmly remains a key priority for a re-elected Baird Government.

ALP response

Yes. We will form a Premier’s Council for Local Government to bring together all relevant stakeholders and develop new partnerships between the NSW Government and the local government sector.

2. Amalgamation of councils - to compulsorily amalgamate or not to compulsorily amalgamate, that is the question

Preface

Everyone is aware of the recommendations of the Independent Review Panel and what has been a traditional and historic view of both sides of politics that amalgamations should be voluntary. The Independent Review Panel, amongst other things, proposes compulsory amalgamations and the Fit for the Future strategy appears to encourage that if Councils do not meet certain criteria, which have been challenged by both councils and academics.


Question 2

Will the Government takes steps in the next term to compulsorily amalgamate councils?

Coalition Government response

The Fit for the Future program provides generous support to councils who choose to merge voluntarily – up to $22.5m for Sydney councils and up to $13.5m for councils in regional NSW.

The Fit for the Future process allows councils to design their future by developing a Proposal to address scale and capacity and performance improvement.

The Office of Local Government has developed the Fit for the Future criteria and benchmarks based on the work of Treasury Corporation (TCorp) and the Panel. The criteria and benchmarks have been reviewed by the Independent Pricing and Regulatory Tribunal (IPART).
IPART found that “…the four criteria reflect what the Review Panel considered to be the essential elements of an effective system of local government. We consider that if councils meet these four criteria they would be able to govern effectively, and have the capacity to both partner with the State and reduce red tape and bureaucracy for business”.

In terms of ‘recalibrating’ the criteria, the Ministerial Advisory Group has however agreed to establish a working group to provide advice on the assessment methodology.

The Fit for the Future package includes $258 million in direct assistance to support councils who decide to merge. This represents a significant investment – more than six times the assistance provided to merging councils in Queensland ($40m) and more than15 times the support to merging councils in metropolitan Perth ($15m).

Fit for the Future councils will have access to a range of benefits, such as access to cheaper borrowing and a streamlined rate variation process. Councils undertaking voluntary mergers are required to demonstrate in their Fit for the Future Proposal how their community has been involved in the process. It is a matter for each council to determine how best to undertake appropriate community consultation in relation to its proposal.

There is a mandatory 28 day exhibition period for voluntary merger proposals submitted as part of the Fit for the Future process.
The Baird Government is providing financial support to councils to undertake detailed analysis of the costs and benefits of potential mergers. We are providing a supported program for five groups of councils to establish and Pilot various models for Regional Joint Organisations. This will help to inform the final model for Joint Organisations, to be rolled out across NSW by September 2016, with funding of up to $5.3m. Each Pilot will received direct funding of $300,000 to support the establishment of the new organisation.

ALP response

No. We are opposed to force amalgamations of councils. We believe they put local jobs and services at risk, and they have not been proven to have any benefits for ratepayers.

3. The jurisdiction of the NSW IRC and protection for local government employees

Preface

Employees of the Crown and local government are the last areas serviced by the NSW IRC. All other areas have headed off to Fair Work Australia. Some States have ceded their IR powers to the Federal Government. The contraction in the jurisdiction of the NSW IRC has meant a significant reduction in members of the Commission (including redundancies of valuable and capable members) and there is general acceptance by employer and employee organisations left standing in the New South Wales jurisdiction that the organisation is under resourced and needs additional judges and Commissioners.

Question 3

Will the Government retain the IRC for local government employees or cede their IR powers to the Federal Government?

Coalition Government response

The Baird Government has no plans for any changes to IR arrangements for local government employees. Ceding IR powers to the Federal Government in respect of local government employees would require an act of the Parliament.

ALP response

Yes. We will retain the NSW Industrial Relations Commission for local government employees. We will not cede industrial relations powers to the Commonwealth.

Question 4

Will the Government increase resources and the number of Judges and Commissioners in the IRC? If so, when?

Coalition Government response

The Baird Government has already increased resources with the appointment of one justice and has announced the appointment of another two commissioners within the next 12 months.

ALP response

We are committed to maintaining the NSW industrial relations system. If we are elected, we will work to ensure that the IRC has the resources it needs to fulfil its functions.

Well, there you have it. Vote wisely.
 
Next month

depaNews in its usual format to bring you up to date on developments at Bankstown, Tamworth (maybe Clarence Valley) and report on the election result as well.

 

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