There are a range of governance models currently The regional subsidiary model in South Australia offers a available, which all have merit in particular size fits all’ approach and does not distinguish ‘one circumstances. Local government does not favour the between representative and advocacy entities and truly consolidation of existing options into a single size commercial entities, which operate in competition with the ‘one fits all’ framework. private sector. Section 43(2) of the Act provides that a regional subsidiary To promote flexibility, it is important to maintain and which is established to perform a regulatory activity on enhance a of options and provide greater clarity behalf of its constituent councils cannot also perform a around the particular circumstances that are best suited significant and related service activity. to each governance model. While there is a clear policy intent to this, it is considered by some to be a statutory hindrance in establishing a single vehicle to undertake both traditional service offerings of local government and at the same time performing a regulatory function. To clarify the extent of this issue, clear examples are required from the local government sector of any activities that have been (or would be) hindered by Section 43(2) of the Local Government Act. Regionalisation Objective Discussion Legislative and Practical Considerations for response Autonomy To achieve a genuine regional approach to planning and The principle of autonomy would challenge the current service delivery, it may be appropriate that a regional establishment of regional subsidiaries. body operate autonomously and should be able to make decisions that are binding on constituent councils. Despite having operational autonomy, currently the constituent councils are ultimately responsible for the liabilities of the This would be an appropriate measure to address regional subsidiary and are able to direct the regional concerns that the broader interests of the region often subsidiary. make way for local interests, potentially limiting the effectiveness and purpose of the regional body. As a challenging concept, the views of the local government sector are being sought about whether regional bodies should Greater autonomy would also lead to more certainty be able to be created that can operate with more autonomy and about long-term resourcing requirements of a regional make decisions that bind constituent councils. body. If the local government sector more broadly supports the principle of autonomy, legislative change would be required. The level of autonomy provided to a regional body may be linked to its functions.
There are a range of governance models currently available, which all have merit in particular circumstances. Local government does not favour the consolidation of existing options into a single ‘one size fits all’ framework. To promote flexibility, it is important to maintain and enhance a of options and provide greater clarity around the particular circumstances that are best suited to each governance model. The regional subsidiary model in South Australia offers a ‘one size fits all’ approach and does not distinguish between representative and advocacy entities and truly commercial entities, which operate in competition with the private sector. Section 43(2) of the Act provides that a regional subsidiary which is established to perform a regulatory activity on behalf of its constituent councils cannot also perform a significant and related service activity. While there is a clear policy intent to this, it is considered by some to be a statutory hindrance in establishing a single vehicle to undertake both traditional service offerings of local government and at the same time performing a regulatory function. To clarify the extent of this issue, clear examples are required from the local government sector of any activities that have been (or would be) hindered by Section 43(2) of the Local Government Act. Regionalisation Objective Discussion Legislative and Practical Considerations for response Autonomy To achieve a genuine regional approach to planning and service delivery, it may be appropriate that a regional body operate autonomously and should be able to make decisions that are binding on constituent councils. This would be an appropriate measure to address concerns that the broader interests of the region often make way for local interests, potentially limiting the effectiveness and purpose of the regional body. Greater autonomy would also lead to more certainty about long-term resourcing requirements of a regional body. The principle of autonomy would challenge the current establishment of regional subsidiaries. Despite having operational autonomy, currently the constituent councils are ultimately responsible for the liabilities of the regional subsidiary and are able to direct the regional subsidiary. As a challenging concept, the views of the local government sector are being sought about whether regional bodies should be able to be created that can operate with more autonomy and make decisions that bind constituent councils. If the local government sector more broadly supports the principle of autonomy, legislative change would be required. The level of autonomy provided to a regional body may be linked to its functions.
ECM_634688_v2_Consultation%20on%20Regional%20Governance%20Framework%20Janu%20V3.docx