Commonwealth funding for structural reform
The Commonwealth is providing over $1 million under
the Local Government Development Program (LGDP) to foster structural
reform of councils. Structural reform includes cooperative service
provision, major resource sharing initiatives, joint service delivery
enterprises, boundary change and amalgamations. Projects are nearing
conclusion in South Australia and are just commencing in Western
Australia, New South Wales and Tasmania.
The Commonwealth has provided :
- $400,000 to the South Australian Local Government Boundary
Reform Board to assist a largely voluntary process of council-led
mergers. The money is funding facilitators to help councils
identify the costs and benefits of structural reform and to
facilitate community consultation. The money is also funding
post-amalgamation grants, so councils can implement reforms
successfully. Total recurrent savings to date are estimated at $20
million ($13 million in metropolitan councils and $6.3 million in
country councils), with the savings used to cut rates, reduce debt
or improve services.
- up to $250,000 to the Western Australian Government for
structural reform, with the first $10,000 provided to fund
collation and analysis of Western Australian council responses to
the 21 recommendations of the Western Australian Local Government
Structural Reform Advisory Committee Report 1996. The remaining
$240,000 is available for projects involving cooperative service
provision, major resource sharing, joint service delivery
enterprises, boundary change and amalgamations.
- up to $400,000 to the NSW Local Government and Shires'
Associations to fund groups of councils in NSW to assess the costs
and benefits of major structural reform options. The money will
enable councils to employ facilitators to assess the net benefits
of cooperative service provision, major resource sharing, joint
service delivery enterprises, boundary change and amalgamations.
The Associations are contributing $150,000 to the project by
funding a discussion paper and discussion sessions with councils.
Councils are also contributing small amounts to help fund
individual projects. The structural reform is council-led and
strictly voluntary. The first projects involve Richmond River and
Casino Councils and a number of councils near Queanbeyan.
- up to $220,000 to the Tasmanian Local Government Board to
assist an amalgamation process across Tasmania by funding projects
assessing the financial status of councils; community satisfaction
with council service delivery and attitudes towards amalgamations;
the outcomes of amalgamations in South Australian and Victoria;
and new approaches to government service delivery on King Is,
Flinders Is and the West Coast of Tasmania.
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