President's comment
Each edition we feature the views of a
State Local Government Association President. The following is from
Councillor Brad Matheson - President, Municipal Association of
Victoria.
Local Government in Victoria has undoubtedly been the economic
and social 'laboratory' in terms of municipal reform in Australia.
Wholesale amalgamations, the introduction of Compulsory Competitive
Tendering, not to mention rate capping, have reverberated throughout
Local Government circles and fundamentally changed the nature of
Local Government in this State.
As other States consider reform, they should ponder the situation
in Victoria. There is no doubt the reform was necessary. Has it been
a success? The jury is still out. What is obvious from this massive
experiment is that reform should not take place on a whim or by
decree, nor should it be carried out without consultation.
The 20 percent across the board rate cut imposed on all Victorian
Councils is a prime example of what was wrong with the reform
process. It was based on a premise that there was a lot of 'fat to
trim' from Council operations and failed to consider the underlying
circumstances in each Council area.
The end result is we have a group of Councils, principally those
asset rich after the sale of electricity utilities, that have coped
well with such a revenue cut. But, by far the greater number of
Councils are continuing to suffer. The alienation of local
communities is also cause for concern.
Four years down the track, we continue to see individual
communities seeking to secede from one Municipality to another. The
closure of Council offices and depots in some towns and a
concentration of activity in others has intensified regional
rivalries, rather than brought them together. Caught in the middle is
a Council struggling to meet State Government imposed regulation or
deal with competing interests from the formerly autonomous Local
Government areas.
This is not to say the reform has not had benefits. Certainly
there have been efficiencies and cost savings. Duplication of
services is a rarity. Councils are outcome focused and there is a
clearer delineation between the role of the elected Councillor and
that of the officer. However, the fundamental lesson from Local
Government reform in Victoria is that it should be carried out in
partnership with the community and not simply by government edict.
If the community is consulted in the reform process, if it has
ownership of the process, there is a far greater likelihood the
emerging Local Government will positively reflect the aspirations of
all - government included.
As other States focus attention on their Councils and the
possibilities of reform, the message is clear - consider the
Victorian experiment in total, the benefits as well as the
deficiencies.
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