LOCAL GOVERNMENT
So it begins – Reforming Local Government in South Australia NATASHA JONES, LAWYER, KELLEDY JONES
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ery rarely these days, does a day go by where The Advertiser fails to include a story about a council. Whether it is about investigation into the conduct of council employees, allegations about behaviours of elected members, a dog attack, recycling and landfill reduction programs, lobbying to retain trees or the revitalisation of local and regional areas that have been affected by drought or bushfires. Councils have been and will continue to be, in the media spotlight. This is, in part, due to the fact that councils, as the level of government closest to their communities, operate within a prescriptive integrity framework that subjects them to significant oversight and scrutiny, both by their communities and by external oversight bodies. Much of the oversight is well intended - let’s face it, councils are public authorities and are trusted with the expenditure of significant public funds. This is at a time when the well debated and agitated topic of State Government not being subject to the same level of accountability mechanisms is also a regular media topic, but that is a discussion for another day! Local government reform does not occur frequently. It is therefore, both topical and important that the current proposed reforms not be understated and, certainly not, underestimated. The last time the local government framework was subject to real significant legislative change was in 2000. This was when the Local Government Act 1934 was revoked and the Local Government Act 1999 (the Act) was introduced. So, 20 years on, we are now facing significant local government reform, much of which is to be considered in the context of the paternalistic care of the State. On 5 August, 2019, the former Local Government Minister, Stephan Knoll, released the Reforming Local Government in South Australia, Discussion Paper. This was developed following the Reforming Local
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Government Survey from earlier 2019. Reform suggestions focussed on four key areas: • Stronger Council Member Capacity and Better Conduct • Lower Costs and Enhanced Financial Accountability • Efficient and Transparent Representation; and • Simpler regulation. At this time, Minister Knoll stated that the foundation for proposed reform to local government was to achieve the support needed for councils, appropriate oversight and that each community enjoy certainty that their council makes good decisions, understands local needs and operates efficiently and sustainably.1 The consultation process led to the Statutes Amendment (Local Government Review) Bill 2020 (the Bill) being introduced to Parliament on 17 June, 2020. The Bill maintains the same four key reform areas.
STRONGER COUNCIL MEMBER CAPACITY & BETTER CONDUCT These reforms have their genesis in asserted high community expectations about behavioural standards and conduct of council members and community leadership. Amongst other things, it recognises integrity standards and issues of corporate and individual reputational damage from the behaviours of a few. The proposed framework focusses on council member behaviour and the measurement, judging and sanctioning thereof. This framework will sit alongside the balance of the public integrity framework, under the Ombudsman Act 1972 and the Independent Commissioner Against Corruption Act 2012. It is considered that a new conduct management framework will establish a much clearer hierarchy of conduct that separates defined ‘behavioural matters’ from defined ‘integrity matters.’ This is to create clearer responsibilities and pathways
so council members and the public can understand which body is responsible for managing different aspects of council member conduct. The current Code of Conduct for Council Members will be abolished, replaced with Behavioural Standards, established by the Minister. This will be supported by council behavioural support and behavioural management policies. Whilst the Minister will regularise council member conduct broadly, there will remain some discretion for councils to introduce individual behavioural support policies. The most significant proposed change is the establishment of a new corporate entity, the Behaviour Standards Panel. Its members will be appointed by the Governor, as nominated by the Minister and the Local Government Association. Its primary function will be to assess and deal with complaints alleging misbehaviour, repeated misbehaviour or serious misbehaviour by council members. Each term is defined. The Panel will have various coercive powers to conduct an inquiry into conduct where failure to comply carries a maximum penalty of $10,000. The Panel will have power to suspend a member from office for a period not exceeding three months, with or without their allowance and may direct the council to lodge a disciplinary complaint with the South Australian Civil and Administrative Tribunal. This area of proposed reform also introduces improved conflict of interest provisions. These will simplify the current system by reducing the current three ‘categories’ of conflict of interest (material, actual and perceived) to two ‘material’ and ‘general’ conflict of interest.
LOWER COSTS AND ENHANCED FINANCIAL ACCOUNTABILITY South Australian councils annually manage a collective budget in excess of $2.2 billion and more than $24 billion of
