A member of parliament questions the Minister for Local Government about the cost and potential for forced amalgamations of local councils. The Minister avoids directly answering the questions, instead highlighting the issues within local governments and outlining actions taken.

AnsweredQoN 183Legislative Assembly
Asked
2 May 2012
Portfolio
Local Government

QuestionView source ↗

LOCAL GOVERNMENT —
AMALGAMATIONS
183. Mr M.P. MURRAY to the Minister for Local Government:
Thank you, Mr Speaker, for allowing me to speak.
I refer to the failed and expensive local government
amalgamation program.
(1) What has
been the cost to date of the Metropolitan Local Government Review Panel,
chaired by Professor Alan Robson, including the recently released draft report?
(2) What is the estimated cost to local governments of
preparing submissions for the review panel?
(3) Will the minister categorically rule out forced
amalgamations of local government authorities?
(4) Can the
minister reassure local government authorities in the regions that he will not
force any of them to amalgamate, including ruling out legislation to force
amalgamation of shires by withholding funding?

AnswerView source ↗

(1)–(4)
I thought that the member for Perth, who is also against any local government
reform—that is another thing he is against—would be asking this
question. I will tell members what I found in local government when I became
minister in February 2009. Sixty-one local governments were unsustainable and
48 local governments required structural reform in one form or another to meet
the future needs of their communities. I also found that only 30 local
governments in Western Australia were sustainable. That is what I found. I will
tell members what else I found.
Several members
interjected.
The SPEAKER : Thank you, members!
Mr G.M. CASTRILLI : I found 36 per cent —
Several members
interjected.
The SPEAKER : I think the member for
Collie–Preston is genuinely interested in the question he has asked and
expects to get an answer, and I am sure the interjections are not helping him
in that process. Members on both sides might like to be a little quieter at
this stage.
Mr G.M. CASTRILLI : I also found that 36
per cent of local governments had limited or no strategic plan in place—that
is, 36 per cent. Eighty-one per cent had limited or no planning for asset
maintenance or renewal. Seventy-seven per cent of local governments had limited
or no financial management planning. Eighty-two per cent had limited or no
financial planning to identify asset maintenance and the renewal gaps. There
are 30 local government areas in Western Australia that have been suffering
population decline for the last two census periods, and it will continue. Some
local governments spend up to 80 per cent of their rate incomes on
unsustainable governance—that is, 80 per cent of their income on
governance. That is what I found.
Mr D.A. Templeman : But what have you
done?
Mr G.M. CASTRILLI : I will tell you what

Mr D.A. Templeman interjected.
The SPEAKER : I am glad you are with us,
member for Mandurah. I was starting to wonder for a while! I welcome you to
this place always and I formally call you to order for the first time today.
Mr G.M. CASTRILLI : It was a very good
question: what have I done? I will tell members what I have done. Two local
governments have merged; 10 local governments are in regional transition
groups; 23 local governments are involved in regional collaborative groups that
have now been identified; and 24 local governments want to merge but have been
blocked from merging. I have mandated 10-year strategic plans so that local
governments actually talk to their communities and find out what the visions
and aspirations are for their communities. I have instituted capacity building,
which is just as important a part of local government as structural reform. Seventy
local governments in Western Australia have received financial assistance from
me to prepare their strategic and asset management plans, and 63 local
governments have received assistance for their long-term financial planning and
integrated report planning. There have been partly funded master classes in
which over 400 participants have been helped out by Local Government Managers
Australia and the Western Australian Local Government Association. This all
comes when I sense very strongly that the majority of members on the opposition
side of the house want local government reform, but they have not had the
courage to do local government reform. They want me to do local government
reform because it saves them from doing it. I know that, and the opposition can
sit there and pontificate as much as it likes, but I am telling opposition
members that the majority of them want local government reform and they have
not had the courage to —
Several
members interjected.
The SPEAKER : Above the hubbub, member
for Mandurah, you soared. I formally call you to order for the second time
today.
Mr G.M. CASTRILLI : In 2006 a report
showed that despite the parlous state local government was in, the former Labor
government did nothing about it—absolutely nothing! I am attempting to
do something about it. And I tell members what, the draft findings of
Metropolitan Local Government Review Panel were released last Friday and it
found essentially that—besides Perth having some illogical boundaries—having
30 local governments in Perth was ridiculous. The far-reaching conclusion was
that reform was absolutely necessary. It is as simple as that. That conclusion
is out for public review. This is about Perth only, member for Collie–Preston;
it is not about regional Western Australia.

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