The Local
Government Act
Review
The Victorian Government is conducting
the first comprehensive review of
the Local Government Act 1989 in a
quarter of a century. Long overdue, this
review responds to calls from the sector
for legislative reform that meets the
contemporary needs of the sector and
from citizens seeking more accountable
and responsive councils.
So what does success look like? Is it an exhaustive updating
of the Act, designed to repackage and reframe existing
principles and content? Revising and updating would be
beneficial. Parts of the Act are ambiguous and inconsistent;
some sections are unnecessarily prescriptive while in others
the meaning is obscure or lacks critical legislative detail.
The Act also contains redundant provisions, which should be
removed.
But to simply ‘evolve’ the Act would miss a major
opportunity to fundamentally reform the legislative
framework in which councils operate and which governs the
relationship between councils and the state government.
We want to look at the big picture rather than focus on
minutiae like how long a council plan should be open for
community consultation; or how many members a council
should be able to appoint to a special committee.
These details may be relevant after considering the overall
principles and structure of a new legislative framework.
An Act “fit for purpose”
Right now we have the opportunity to completely reframe
our legislative framework – to meet the contemporary
needs of councils and the communities they represent, as
well as to reflect a modern relationship between the local
government sector and state government which balances
the independence of councils with the need for appropriate
state oversight.
Have your say
Sector and community feedback is sought to inform options
for a new Act. The purpose of the first round of consultation
based on the discussion paper (September to December
2015) is to fully explore the fundamental principles that
should inform a new Act and how to arrive at a legislative
framework that meets contemporary and future needs of
the community, the sector and the state government. This
will be based on a full discussion about the strengths and
failings of the current Act.
Local Government in Victoria
Local government is recognised in the Victorian Constitution
as a distinct tier of government, giving people a say in
matters affecting their local area. But the state government
also has an overarching responsibility to ensure that the
sector operates with full probity and integrity – and in
compliance with the requirements of the Act.
A key question is how the legislative framework can balance
the freedom of councils to manage their own affairs on
behalf of their communities with the need for the state
government to ensure probity and integrity of the sector
through the Minister for Local Government.
However where such prescriptive detail ends up – in the Act,
in regulations or guidelines is a question for later.
www.yourcouncilyourcommunity.vic.gov.au
These are big issues to explore. with big implications for the
future of councils.
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A key issue is ensuring we all – sector, community and
state – share a common understanding how the role of
councils is expressed in the Act. We need to consider
the functions that we expect all councils to perform and
the powers they require to do so effectively.
The second overarching consideration is what should
be done about councils that do not perform their
overall role or these functions in accordance with the
legislative requirements set out in the Act.
Should there be consequences, e.g. penalties
or sanctions, for councils that do not comply
with requirements set out in the Act? If so, what
should they be?
Should councils’ general powers to achieve their
objectives and perform their functions, be limited
in any way?
Should the Act always provide consequences,
e.g. penalties or sanctions, for non-compliance
with the requirements? If so, what should they be?
Two key questions are to be answered if we are to create a
new and contemporary Act that will meet current and future
needs:
How should the ideal role of councils be
described in the Act, and what are the key
functions and powers that councils need to
perform this role?
What oversight should be applied to ensure
councils perform this role and functions, and
exercise their powers in accordance with the
Act, and what powers should be provided to the
Minister to respond to non-performance?
The role, power and functions of councils
Victorian councils are established as legal entities by the
state government. The Victorian Constitution requires
the state to provide for the creation of democraticallyelected councils that are empowered to act in relation to
defined municipalities. The state decides, through the Local
Government Act 1989, the role, powers and functions of
councils.
State government oversight of councils is exercised by the
Minister for Local Government. Ministerial powers include
powers: to decide the overall structure of the sector (e.g.
the number and size of councils); to intervene in limited
circumstances in council matters (e.g. procurement
practices); and in extreme circumstances to suspend a
council and recommend its dismissal to Parliament.
In a future that enjoys a robust and high-performing
local government sector that is accountable to its local
communities, key questions to be considered are:
What types of powers should the Minister have
in the Act?
Should there be different levels of ministerial
intervention in relation to council governance and
performance?
How could such a graduated system of intervention
work while preserving the independence of
councils?
Currently, legislation gives councils the power to largely
undertake anything a council considers necessary to achieve
its objectives and perform its functions. In a future that has
a vibrant community-oriented council, one that is strong and
independent but accountable to stakeholders, key questions
to be considered are:
We seek your contribution to the Local Government Act Review. Please respond to key
questions, raise other issues, and make submissions at the review’s website.
www.yourcouncilyourcommunity.vic.gov.au