Australia's National Local Government Newspaper Online

South Australian independent inquiry backed by LGA

South Australia’s Local Government Association (LGA) has confirmed it will move forward with an independent inquiry into the financial sustainability of Local Government. LGA President, Councillor John Legoe said the Association was even more determined to see an independent inquiry following recent inaccurate reporting by some media.

“The LGA’s response package includes legislative changes, and a range of other mechanisms, but we have decided it is important to have an independent inquiry to look at wider contextual issues,” he said.

The inquiry will consider external impacts on Council resources, including the fairness of Federal grants, the cost of Council services and infrastructure and possible alternative funding sources. Councillor Legoe said it is clear that Councils can do more to address the impact on rates of uneven property valuations – particularly for those on fixed incomes, such as pensioners.

“It is vitally important that we focus on the real issues and are not distracted by inaccurate reporting repeating myths, such as ‘windfalls’ which are not legally possible under the current Act,” he said.

Cr Legoe said the inquiry would also be consistent with a Parliamentary motion moved by independent MP Bob Such, currently before the House of Assembly. If passed, will formally ask the LGA to consider and make recommendations about a range of Council issues.

Cr Legoe said that the SA Government was, so far, expressing confidence in the LGA to commission an independent inquiry.

“We would like to see the State more involved, however we have decided we will proceed. We are very clear that it will be independent.”

Cr Legoe said that the Executive Committee had now finalised the Terms of Reference for the inquiry and that it be managed by a three member board – hopefully to be appointed in February. This will be the first time the LGA has commissioned a fully independent inquiry of this type and Cr Legoe said this was a sign of growing maturity of the sector.

Cr Legoe said Councils still struggle to explain that property valuations have nothing to do with total rates income but are only used to distribute rates among ratepayers. He said Councils reassessed and set tax rates every year rather than leaving tax rates the same to reap windfalls as with many other taxes.

Cr Legoe said Council rates could only be raised to balance a Council budget so income was always matched against expenditure programs.

Fact Sheets are available from www.lga.sa.gov.au/goto/rates

The following articles are also included in this edition or go BACK to the main page: