Role of Local
Government
PHASE 1 – FINAL REPORT
DECEMBER 2012
Local Government Office
Department of Premier and Cabinet
ROLE OF LOCAL GOVERNMENT
PHASE 1 – FINAL REPORT
CONTENTS
INTRODUCTION.......................................................................................................... 3
PROJECT PURPOSE ..................................................................................................... 4
CONSULTATION OUTCOMES .......................................................................... 5
Process............................................................................................................................................................................... 5
Findings .............................................................................................................................................................................. 5
Analysis .............................................................................................................................................................................. 6
ROLE STATEMENTS .................................................................................................... 8
PROCESS AND GOVERNANCE ARRANGEMENTS ............................. 9
APPENDIX 1 - SUMMARY OF FEEDBACK................................................. 13
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Introduction
The Role of Local Government project was initiated by the Premier’s Local Government
Council (PLGC) in April 2012.
The project was established in response to ongoing public debate regarding the future of
Local Government in Tasmania which revealed a wide range of divergent views on the
current and future role of Local Government and concerns about long-term financial
sustainability.
The diversity of councils in terms of their size, geography, social and economic composition
makes it difficult to neatly articulate the ‘problem’. The lack of agreement on what the
‘problems’ are combined with the diversity of stakeholder perspectives has led to limited
success in defining the way forward.
The Role of Local Government project seeks to build a solid foundation upon which
stakeholders can clearly identify the nature of the ‘problem’, discuss and explore their
aspirations for Local Government and then identify potential opportunities for reform.
The project recognises there are concurrent State and national reform agendas running and
councils are already engaged in a process of review across many aspects of their business.
The end result of this project is not to determine the magic ‘silver bullet’ to fix all issues,
rather it is about working with Local Government to identify a range of reforms which will
support the ongoing continuous improvement process.
The final report on phase 1 of the Role of Local Government project provides a revised
project purpose, a summary of the feedback gathered through the consultation period,
revised role statements, and outlines the process and governance arrangements for phase 2
of the project.
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Project purpose
The aim of the Role of Local Government project is to facilitate an ongoing ‘conversation’
which will lead all stakeholders to a shared understanding of what Local Government is and
what it needs to become in order to meet the needs of communities now and into the
future.
The project recognises that not one sector holds all the answers and that to develop a
comprehensive set of Local Government reforms requires the knowledge and expertise
from State and Local Government sectors, input from local government experts and
academics, the private sector and the general community.
In order to arrive at this position the project will:

define the role of Local Government;

identify the capabilities required to fulfil the role of Local Government;

identify strengths and capability gaps within Local Government;

produce a set of Local Government reform options.
The project is being delivered in two phases:
1. Defining the role of Local Government
2. Defining and assessing the capabilities required of Local Government to fulfil its role.
Phase 1 commenced in July 2012 and involved the release of a discussion paper and
delivery of three workshops during October 2012. The focus of phase 1 was to initiate
frank and open discussion amongst councils and stakeholders about the role of Local
Government and provide opportunities for feedback.
The focus of phase 2 will be to ‘unpack’ the role statements that were defined in phase 1
and to identify the capabilities required to fulfil the role. The aim of this process is to
establish a framework which allows for the assessment of councils in order to identify
challenges and opportunities and develop a set of Local Government reform options.
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Consultation outcomes
PROCESS
The project working group developed a discussion paper which was provided to all councils
on 10 October 2012. The discussion paper provided the basis for the consultation.
Councils were invited to provide written submissions and to attend one of three regional
workshops. Workshops were held on 15, 17 and 23 October 2012 in Burnie, Hobart and
Launceston respectively. Written submissions were requested by 19 November 2012.
Below is a summary of the findings and associated analysis and comments. A summary of
the consultation feedback is at Appendix 1.
FINDINGS
The main findings from the consultation were as follows:

there was a high level of support for the project concept;

there was general agreement with the role statements at a conceptual level;

the capability statements as they appeared in the discussion paper were considered
to be difficult to measure;

there was a level of scepticism around the context of the project and confusion
about the direction of the project;

there was concern that the project would not adequately address the evolving role
of Local Government;

there were concerns around how the project would cater for the differences
between small rural and large urban councils; and

there was strong demand for clarification about how phase 2 of the project will be
managed.
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ANALYSIS
Role statements
There was general acceptance of the role statements at a conceptual level.
There were many suggestions to improve the wording of the statements, and a general
criticism was that they were too ‘wordy’ and should be shorter. The question was also
asked as to whether the role statements were presented in order of priority.
The amended set of role statements is provided on page 8. The statements are numbered
for ease of reference but are not in order of priority as the order of priority may vary
between councils.
Capability statements
There was a high level of concern expressed about the capability statements, specifically
they were considered too difficult to measure in any meaningful way.
As the capability statements will form the basis of the assessment of Local Government it is
crucial they accurately define the capabilities while being flexible enough to accommodate
the differences between urban and rural, small and large councils.
The project advisory group (to be established in phase 2) will undertake further work on
the capability statements during phase 2 of the project. It is intended to finalise the
capability statements by the end of May 2013 in time to develop a self-assessment survey
for councils to complete during June 2013.
Project context and direction
There was some level of scepticism about the context and direction of the project. For
example, questions were asked along the lines of:

what is the agenda behind the project and will the information gathered through this
project be used to justify council amalgamations?
Public debate has focussed on what is the ‘correct’ number of councils for Tasmania.
However, changing the number of councils, or adjusting boundaries, may not be the
panacea to address all structural and capability issues. This project does not ask: ‘how many
councils should there be?’, but instead, broadens the parameters of the debate to focus on
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understanding and agreeing on the role of Local Government and then identifying the
challenges and opportunities.
There was also confusion about the direction of the project. Some were expecting a
detailed review of roles and functions whereas others saw it as a ‘vision’ project.
The project will consider current roles and capabilities as well as explore the
conceptualisation of different ‘visions’ for Local Government.
Evolving role of Local Government
A number of submissions were concerned that the project would focus on the current role
of Local Government and that it would not facilitate discussion about the evolving and
expanding role of Local Government.
This issue will need ongoing management as the project progresses to ensure that both
aspects of the role of Local Government are fully investigated and discussed.
Small rural v. large urban
Many submissions raised concerns that the project would not deal adequately with the
differences between small and large, and urban and rural councils.
The working group acknowledges the differences between types of councils, community
expectations, revenue raising ability etc. The working group believes there are core roles
which all councils share, albeit that the delivery of those roles will differ according to a
council’s individual characteristics. The working group will work with stakeholders to ensure
the finalised roles and the capabilities are flexible enough to accommodate those
differences.
Phase two
A number of questions related to the delivery of phase 2 of the project.
Some raised concerns that if the next phase were delivered by the Local Government
Board it would effectively be out of the hands of Local Government. Others suggested that
councils do not trust the State Government enough to be honest about capability shortfalls.
The proposed process and governance for phase 2 is outlined on pages 9-12. The process
provides for ongoing opportunities for stakeholders to contribute and influence outcomes.
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Role statements
The Role of Local Government discussion paper proposed eight statements to describe the
role of Local Government. The working group amended the role statement in line with
feedback received. The following amended role statements are proposed:
1. Councils respond to and develop a sense of place through branding, promoting and
enhancing local identity and promoting social cohesion.
2. Councils engage with their communities, providing them with information about
community and council business and where appropriate, actively consult with and
provide opportunities for constituents to participate in council decision making.
3. Councils provide strategic leadership through understanding current and future
operating environments, identifying opportunities and challenges and making
decisions which align with long-term strategic plans and corporate plans.
4. Councils are strategic land-use planners who work with communities to create an
environment that guides the use of land to balance economic, environmental and
social values.
5. Councils facilitate the economic viability and development of communities by
working with the business community to attract and retain investment and support
sustainable economic growth.
6. Councils are responsible financial managers who deliver cost effective, equitable and
efficient services and assets which reflect local needs and expectations and are
guided by council’s long-term planning objectives.
7. Councils enforce relevant state and national legislation and create by-laws and
policies as required to support the efficient functioning of council.
8. Councils engage with each other and other spheres of government to represent and
advocate the needs of their communities, and where appropriate, cooperate and
work in partnership to generate the greatest benefit for communities.
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Process and governance
arrangements
Phase 2 of the project will be delivered in three stages commencing February 2013. The
flow chart on page 12 provides a summary of the three stage process and governance
arrangements which are described in detail below.
The working group that had oversight of phase 1 of the project will be expanded to include
elected member representation and will become an advisory group to the project.
Stage 1: Communicate and consult (February-June 2013)
Process
This stage will focus on information gathering and promoting discussion among Local
Government and other stakeholders.
The project advisory group will promote discussion through the delivery of a minimum of
four focus papers which will elaborate on aspects of the role statements and capabilities.
The aim of the papers will be to present a variety of viewpoints drawn from different
sectors – some of which may be dissenting views – in order to generate a robust
interrogation of the issues.
The project advisory group will investigate social media and other promotional
opportunities to build and maintain stakeholder interest in the project.
The project advisory group will analyse the feedback received during this period along with
information gathered through academic works and a range of data sources to finalise
capability statements and statements of success, and to develop a self-assessment survey.
Councils will be invited to respond to the survey during June 2013.
Stage 1 will culminate in a forum at the Local Government Association of Tasmania
conference and the release of the draft Role of Local Government Report in July 2013.
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Goal
All stakeholders have the opportunity to explore issues and feed into the finalisation of
Local Government roles and capabilities. The specific objectives will be to:

develop capability statements and statements of success associated with each role
statement;

invite councils, communities and non-municipal organisations to express their views;

invite councils to complete a self-assessment based on the capability statements.
Product
Draft Role of Local Government Report
Governance
Stage 1 will be led by the Local Government Office (LGO). The project advisory group will
provide advice. The PLGC will receive regular progress reports at scheduled meetings
throughout 2013.
Stage 2: Review (August-October 2013)
Process
A review of the outputs of stage 1 will be undertaken as determined by the Minister for
Local Government following consideration of the Role of Local Government report. The
Minister will decide on a process for the review. Options include review by the Local
Government Board, the Director of Local Government or an independent consultant.
Goal
The specific objective of stage 2 will be to:

test and confirm the role statements, capabilities and statements of success
established during stage 1;
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
assess councils in terms of the role statements, capabilities and statements of
success;

identify the challenges and opportunities facing Local Government.
Product
Local Government Review Report
Governance
The Minister for Local Government will initiate the review and the final report will be
presented to the Minister for Local Government for consideration.
Stage 3: Development of reform options (October 2013- 2014)
Process
Councils will be invited to consider the findings of the Local Government review. The LGO
will facilitate regional workshops to discuss the challenges and opportunities identified in the
report and explore opportunities for reform.
Goal
The specific objective of stage 3 will be to identify potential solutions and opportunities for
Local Government reform.
Product
A paper that identifies a set of Local Government reform options.
Governance
As with stage 1, this stage will be led by the LGO with advice from the project advisory
group, and will be overseen by the PLGC.
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ROLE OF LOCAL GOVERNMENT PROJECT: PHASE 2
Stage 1
Communicate and Consult
February – May 2013
Issue exploration
Promoting
discussion among
LGs and
stakeholders
Rolling release of 4
focus papers on
each of LG roles and
capabilities
June 2013
Research and
Analysis
LGO collect data
from councils,
stakeholders,
academia and state
and federal govt
sources
Document
Public release of
LG roles and
capabilities
Interim Review
Council self
assessment against
LG capabilities
Stage 3
Development of Reform
Options
Stage 2
Review
August – September 2013
Role of Local
Government
Report
Considered by
Minister for LG
25-26 July 2013
30 July 2013
Consultation
Proposed forum at
LGAT Annual
Conference to
discuss self
assessment
outcomes
Draft Role of Local
Government
Report
Final consultation
with councils and
stakeholders
Local Government
Review Report
Submitted to
Minister for Local
Government
Workshops
LG Office hold
regional
workshops to
discuss report and
canvas reform
options
Governance
Led by LG
Office
Local Government
Reform
Recommendations
submitted to
Minister for Local
Government
Advised by
project
advisory
group
Overseen by
PLGC
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Overseen by
PLGC
Minister to
consider final
Review
2014
Consultation
Local Government
Review Report
released to
councils and
stakeholders
Advised by
project
advisory
group
Governance
Minister to
direct Review
October 2013
Review
Review of stage 1 conclusions to:
 Confirm roles/capabilities
 Assess councils
 Identify LG challenges and
opportunities
Governance
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Appendix 1 - Summary of feedback
Workshops
Regional workshops provided an overview of the project and gave attendees the
opportunity to ask questions and provide input into the project. The following table
summarises the details of the workshops:
Location
Date
No. acceptances
Burnie
15 October 2012
22
Hobart
17 October 2012
22
Launceston
23 October 2012
23
Concerns
Participants at workshops held some level of scepticism around the project. A number of
attendees claimed that Local Government did not have enough trust in State Government
to be able to participate in the project in any meaningful way. Furthermore, there were
questions around the ‘agenda’ behind the project.
A number of attendees sought clarification on various elements of the project. For example:



What will happen with the project outputs?
How will the next phase of the project be managed?
How will this project align with the sustainability objectives and indicators project?
Attendees raised on multiple occasions the differences between the roles of large urban
and small rural councils and questioned how the project could be meaningful in the face of
the differences.
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There was concern at one workshop that the role of Local Government is already defined
in the Local Government Act 1993, and that creating a new definition of the role of Local
Government would be confusing and is unnecessary.
There were some concerns that the project may create further reporting and compliance
requirements.
Suggestions
It was suggested that the role statements be re-labelled ‘tasks’ to remove confusion around
the definition of the role as described in the Act.
Related suggestions also included the need for a definition of ‘role’.
It was also suggested that ‘community’ be defined: communities of interest/geographic
communities.
Supporting feedback
There was general support for the role statements as they were drafted in the discussion
paper.
There was general consensus that there is confusion among communities between the roles
of Local, State and Commonwealth governments.
There was the view that councils need and want a forum in which they can say that they do
not have the capacity to fulfil some parts of their role and seek assistance. Clearly this view
is at odds with the view listed under ‘concerns’ that councils do not have enough trust in
the State to be able to admit to areas where they have insufficient capacity.
Feedback related to role statements
General comments were that the role statements were too wordy and ambiguous.
It was also noted that some of the verbs used rendered the statements immeasurable.
The question was asked whether they were in order of priority, and if not, whether that
would be a useful approach to take.
It was also noted that there was overlap between the role statements and suggested that
this should be acknowledged up front.
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Written submissions
A total of 13 written submissions were received. Written submissions were received from:
1. Central Coast Council
2. Clarence City Council
3. Derwent Valley Council
4. Hobart City Council
5. Huon Valley Council
6. Kingborough Council
7. Latrobe Council
8. Launceston City Council
9. Meander Valley Council
10. Northern Midlands Council
11. Tasman Council
12. West Tamar Council
13. Individual submission (anonymous)
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Concerns
There was some concern that the project may focus on minimum capabilities rather than
seek to encourage councils to strive to be the best they can be.
A number of submissions were concerned that the discussion paper did not focus
sufficiently on regional activities of Local Government.
As at the workshops, there was concern raised that the role of Local Government was
already defined in the Local Government Act 1993 and that the proposed role statements,
capability statements and internal and external factors did not align with the legislative
definition.
Another concern raised by a number of submissions was that the project may not be able
to deal with the evolving nature of the role of Local Government – the role statements as
defined now may not encapsulate the role of Local Government as it evolves in the future.
Suggestions
It was suggested that:

the key for a successful future for the Tasmanian Local Government sector lies in
strategic decision making and this should be focus of the capability statements;

there should also be greater focus on the role of councils serving communities and
ratepayers, and managing community assets and infrastructure in an efficient manner;

the project should look at the current and future possible roles of Local
Government;

the project needs to engage a broad audience;

‘indicators of success’ or ‘measures of performance’ may be more useful than
‘statements of success’;

the capability statements be rephrased to read: ‘the council has access to expertise
and has demonstrated the capacity to…’ as this would recognise the increasing
trend to share resources among councils;
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
councils should be assessed on (1) having a robust asset management plan in place
(2) having a sustainable long-term financial plan and (3) having community support
on service levels;

‘local leadership’ should be included as an internal factor.
Supporting feedback
Generally there was a high level of support for the project concept and the opportunities
that the project presented.
The written responses indicated general support for the role statements at the conceptual
level.
The project represents a great opportunity to strengthen the purpose and perceptions of
the Local Government sector in Tasmania.
Feedback related to role statements
One submission believed that the 1997 declaration on the role of Australian Local
Government as outlined on page 33 of the discussion paper was adequate.
Feedback was also received suggesting that the role and capability statements were too high
level to be useful in a review of roles and functions because it will not be possible to
develop meaningful indicators.
A number of suggestions were made to improve the wording of the proposed role
statements, including making the statements more concise.
It was suggested that sustainable management of council operations should be an additional
role.
One submission suggested that the role statements not be numbered or if they are, that a
preamble clarify that they are not a prioritised list.
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