Skip to main content
SpringerLink
Log in
Book cover

Local Government in Australia pp 411–433Cite as

The Future of Local Government in Australia: Maximising Service Delivery with Political Voice

  • Chapter
  • First Online:

  • 1258 Accesses

Abstract

Throughout this book we have seen that the place and role of local government in Australia’s polity has been a perennially vexatious issue, conceived as both an element to individual local government jurisdictions (initially as colonies, then as states and territories) and from the federal tier. Most recently, this has been reflected in the Reforming the Federation White Paper process that was initiated by (then) Prime Minister Tony Abbott in June 2014 but terminated at a meeting of the Council of Australian Governments (COAG) in March 2016. In this final chapter we revisit both the moral and economic arguments for decentralised government set out in Chap. 4, and use these to develop a more comprehensive theory of decentralised government . We then examine evidence that suggests that local government in Australia is developing towards having the administrative and functional capacity required for an expansion of its remit. In addition, we detail the changes necessary to provide local government with the fiscal capacity required for an expanded remit. Thus, with a moral and economic foundation in hand, we speculate upon a bold reform of the federation which envisions local government as the fundamental unit for delivery of government goods and services. We argue that such a system would result in more efficient, effective, sustainable and equitable delivery of government goods and services. We conclude by outlining a number of political paths to achieve this desirable end.

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   149.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   199.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   199.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Notes

  1. 1.

    Elements of these arguments appeared—in a much truncated and less developed form—in a Report prepared for the McKell Institute by Joseph Drew and Roberta Ryan (see Drew and Ryan 2016).

  2. 2.

    Metaphysics refers to the study of facts outside of the realm of sensory experience. Thomistic metaphysics refers to the work in this field by Thomas Aquinas.

  3. 3.

    It is sometimes asserted that local government should be made to rely entirely on own source income to improve political accountability (see, also the report of the 1976 Layfield Committee; Lyons 2007). However, to do so would be to condemn local government areas of greatest need (owing principally to socio-economic disadvantage) to ever widening levels of disadvantage (because such areas would clearly also have lower revenue capacity) and perilous financial sustainability. Moreover, as noted in Chap. 7 it is essential to make efforts at horizontal fiscal equalisation to avoid inefficient migration of capital and labour, avoid wasteful lobbying, reduce opportunities for pork barrelling and prevent financial failure of local government areas.

  4. 4.

    One criticism of this proposal under a federation comprising decentralised governments with an expanded remit is that the quantum of transfers is likely to be large. However, this criticism ignores our calls for greater benefit pricing and relatively higher property taxes. Under these arrangements the grants would relate only to the quantum required for equalisation purposes. Moreover, the federal government already makes substantial “equalisation” payments of a kind, such as family tax benefit and location allowances.

  5. 5.

    We note Twomey’s (2012, p. 161) objection that direct funding of decentralised government could be “vulnerable to constitutional challenge if anyone had the standing and motivation to take such an action”. In response we point out that the last 16 years of direct funding to local government via the Roads to Recovery program has not uncovered an individual with sufficient motivation or standing to take such action. Moreover, the parties most interested in mounting a constitutional challenge of this sort (the states and territories) would have a difficult time convincing the community that fighting to put an end to Commonwealth funding and political accountability and transparency was in the community’s interests.

References

  • ABS. (2010). Australian Standard Geographical Classification (ASGC). July 2010. http://www.ausstats.abs.gov.au/ausstats/subscriber.nsf/0/0001EA65CA16C1B9CA25779F00179316/$File/12160_july%202010.pdf. Accessed August 22, 2016.

  • ABS. (2015). Australian Bureau of Statistics. Catalogue 5512.0 Government Finance Statistics 2013–14. http://www.abs.gov.au/AUSSTATS/abs@.nsf/allprimarymainfeatures/715CE297415115B1CA257F9D001D0355?opendocument. Accessed May 17, 2016.

  • ABS. (2016). Australian Bureau of Statistics. Catalogue 6248.0.55.002—Employment and earnings, public sector, Australia, 2014–15. http://www.abs.gov.au/ausstats/abs@.nsf/mf/6248.0.55.002. Accessed May 17, 2016.

  • ALGA. (2007). Australian Local Government Association. Fact Sheet 7: Styles of Constitutional Recognition http://www.alga.asn.au/constitutionalrecognition/pdf/FactSheet7_StylesofRecognition.pdf. Accessed October 25, 2011.

  • Aulich, C. (2015). Recognising the local Government sector. In B. E. Dollery & I. Tiley (Eds.), Perspectives on Australian local government reform (pp. 162–175). Sydney: Federation Press.

    Google Scholar 

  • Aulich, C., & Piestch, R. (2002). Left on the shelf: Local government and the Australian Constitution. Australian Journal of Public Administration, 61(4), 14–23.

    Article  Google Scholar 

  • Baird, M. (2015). Fit for the Future: $2 billion community windfall by merging unfit councils (Press release). https://www.nsw.gov.au/media-releases-premier/fit-future-2-billion-community-windfall-merging-unfit-councils. Accessed May 17, 2017.

  • Beabout, G. (1998). The principle of subsidiarity and freedom in the family, church, market and government. Journal of Markets & Morality, 1(2), 130–141.

    Google Scholar 

  • Bell, P. (2006). How local government can save Australia’s federal system. In A. J. Brown & J. Bellamy (Eds.), Federalism and regionalism in Australia: New approaches, new institutions? (pp. 171–184). Canberra: ANU E Press.

    Google Scholar 

  • Boadway, R., & Shah, A. (2009). Fiscal federalism: Principles and practice of multiorder governance. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Brennan, G., & Buchanan, J. (1980). The power to tax: Analytical foundations of a fiscal constitution. Cambridge: Cambridge University Press.

    Google Scholar 

  • Brown, A. J. (2006). Federalism, regionalism and the reshaping of Australian governance. In A. J. Brown & J. A. Bellamy (Eds.), Federalism and regionalism in Australia. New approaches, new institutions? (pp. 11–32). ANU E Press. http://epress.anu.edu.au/fra_citation.html. Accessed October 25, 2011.

  • Brown, A. J. (2007). Reshaping Australia’s federation: The choices for regional Australia. Australasian Journal of Regional Science, 13(3), 235–252.

    Google Scholar 

  • Brown, A. J. (2008). In pursuit of a genuine partnership: Local government and federal constitutional reform in Australia. University of New South Wales Law Journal, 31(2), 435–466.

    Google Scholar 

  • Bruekner, J. (1997). Infrastructure financing and urban development: The economics of impact fees. Journal of Public Economics, 66, 383–407.

    Article  Google Scholar 

  • Buchanan, J. (1975). The limits of liberty: Between anarchy and leviathan. Indianapolis: Liberty Fund.

    Google Scholar 

  • Carnegie, G., & West, B. (2010). A conceptual analysis of price setting in Australian local government. Australian Accounting Review, 53(20), 110–120.

    Article  Google Scholar 

  • COAG. (2016). Council of Australian Governments. COAG meeting communique, April 1, 2016. http://www.coag.gov.au/node/537. Accessed May 19, 2016.

  • Deem, J., Hollander, R., & Brown, A. J. (2015). Subsidiarity in the Australian public sector: Finding pragmatism in the principle. Australian Journal of Public Administration, 74(4), 419–434.

    Article  Google Scholar 

  • DE&E [Department of Environment and Energy (Australian Government)]. (2016). Australia’s bioregions. https://www.environment.gov.au/land/nrs/science/ibra. Accessed August 22, 2016.

  • Discussion Paper. (2015). Reform of the Federation Green Paper 2015 (Australian Government). https://federation.dpmc.gov.au/sites/default/files/publications/reform_of_the_federation_discussion_paper.pdf. Accessed May 19, 2016.

  • Dollery, B. E., Wallis, J., & Allan, P. (2006). The debate that had to happen but never did: the changing role of Australian local government. Australian Journal of Political Science, 41(4), 553–567.

    Article  Google Scholar 

  • Dollery, B. E., Grant, B., & Kortt, M. (2012). Councils in cooperation: shared services and Australian local government. Sydney: Federation Press.

    Google Scholar 

  • Dollery, B., Grant, B., & Kortt, M. (2013). An evaluation of amalgamation and financial viability in Australian local government. Public Finance & Management, 13(3), 215–238.

    Google Scholar 

  • Drew, J. & Dollery, B. (2016). The price of democracy? Political representation structure and per capita expenditure in Victorian Local Government. Urban Affairs Review. doi:10.1177/1078087416629806.

  • Drew, J., & Ryan, R. (2016). Giving local governments the reboot: improving the financial sustainability of local governments. Report published by The McKell Institute http://mckellinstitute.org.au/wp-content/uploads/2016/09/McKell_Local-Government_WEB.pdf. Assessed December 28, 2016.

  • EPCRLG. (2011). Expert Panel on Constitutional Recognition of Local Government (Final Report). Constitutional Recognition of Local Government

    Google Scholar 

  • Golemboski, D. (2015). Federalism and the Catholic principle of subsidiarity. Publius: The Journal of Federalism, 45(4), 526–551.

    Article  Google Scholar 

  • Grant, B. (2015). The Reform of the Federation “Discussion Paper”: Hollowing out the federation? 26 June. In ACELG [Australian Centre of Excellence for Local Government]. Local government innovation and analysis: Highlights from The Town Crier. file:///C:/Users/119416/Downloads/ACELG-LG-Innovation-Analysis.pdf. Accessed May 19, 2016.

    Google Scholar 

  • Grant, B., & Dollery, B. E. (2011). Symbolism and tokenism in constitutional recognition of local government’ (Working Paper 03-2011). Armidale: UNE Centre for Local Government. https://www.une.edu.au/__data/assets/pdf_file/0011/21602/03-2011.pdf Accessed 16 February 2016.

  • Greber, J. (2015). Turnbull seeks ways of tapping into land-value gains from new rail projects. Australian Financial Review, October 11, 2015.

    Google Scholar 

  • Health [NSW Government Department of Health]. 2016. Local health districts and speciality networks. http://www.health.nsw.gov.au/lhd/pages/default.aspx. Accessed August 22, 2016.

  • Hirschman, A. (2013). The essential Hirschman. Princeton: Princeton University Press.

    Google Scholar 

  • ILGRP. (2013). Independent Local Government Review Panel (Revitalising local government: Final report of the Independent Local Government Review Panel). Sydney: ILGRP.

    Google Scholar 

  • Kelly, A., Dollery, B. E., & Grant, B. (2009). Regional development and local government: Three generations of federal intervention. Australasian Journal of Regional Studies, 15(2), 171–193.

    Google Scholar 

  • Kenney, J. (1955). The principle of subsidiarity. The American Catholic Sociological Review, 16(1), 31–36.

    Article  Google Scholar 

  • Ladd, H., & Yinger, J. (1989). America’s ailing cities—Fiscal health and the design of urban policy. Baltimore: John Hopkins University Press.

    Google Scholar 

  • LSS [Local Land Services (NSW Government)]. (2016). Work with your local land services. http://www.lls.nsw.gov.au/. Accessed August 22, 2016.

  • Lyons. (2007). Lyons Inquiry into Local Government. Place-Shaping: A Shared Ambition for the Future of Local Government. London: Stationary Office.

    Google Scholar 

  • Morris, C. (2010). Australian attitudes to federalism reinforce need for reform. Griffith News. https://app.secure.griffith.edu.au/news/2010/04/09/australian-attitudes-to-federalism-reinforce-need-for-reform/. Accessed May 17, 2016.

  • National Archives. (2016). National Archives of Australia. The 1967 referendum—Fact sheet 150. http://www.naa.gov.au/collection/fact-sheets/fs150.aspx. Accessed February 16, 2016.

  • Novak, M. (1999). On cultivating liberty: Reflections on moral ecology. Lanham: Roman & Littlefield.

    Google Scholar 

  • Oates, W. (1972). Fiscal federalism. Cheltenham: Edward Elgar.

    Google Scholar 

  • Oates, W. (1999). An essay on fiscal federalism. Journal of Economic Literature, XXXVII, 1120–1149.

    Google Scholar 

  • Olson, M. (1969). The principle of fiscal equivalence: The division of responsibilities among different levels of government. The American Economic Review, 59(2), 479–487.

    Google Scholar 

  • Pius XI. (1931). Quadragesimo anno: Reconstructing the social order and perfecting it comfortably to the precepts of the Gospel in commemoration of the fortieth anniversary of the encyclical ‘Rerum Novarum’. Australian Catholic Truth Society.

    Google Scholar 

  • PM. (2014). Prime Minister of Australia. The Hon. Tony Abbott MP. White Paper on the reform of the federation. https://www.pm.gov.au/media/2014-06-28/white-paper-reform-federation. Accessed February 16, 2016.

  • Power, J., Wettenhall, R. L., & Halligan, B. (1981). Local government systems of Australia (Australian Council for Intergovernmental Relations (ACIR) Information Paper No. 7). Canberra: Australian Government Printing Service.

    Google Scholar 

  • RDA [Regional Development Australia (Australian Government)]. (2016). Find my RDA. https://rda.gov.au/my-rda/find-my-rda.aspx. Accessed August 22, 2016.

  • Saulwick, J. (2015). Baird’s plan: Sydney will fill the new stadiums, if not the old. Sydney Morning Herald, 4 September. http://www.smh.com.au/nsw/bairds-plan-sydney-will-fill-the-new-stadiums-if-not-the-old-20150904-gjffqo.html. Accessed May 17, 2016.

  • Saunders, C. (2004). The constitutional framework for a regional Australia. In W. Hudson & A. J. Brown (Eds.), Restructuring Australia: Regionalism, Republicanism, and Reform of the Nation State (pp. 63–78). Sydney: Federation Press.

    Google Scholar 

  • Sirico, R. (2014). Subsidiarity and the reform of the welfare of the nation state. In M. Evans & A. Zimmermann (Eds.), Global perspectives on subsidiarity (pp. 107–127). New York: Springer.

    Chapter  Google Scholar 

  • Slack, E. (2016). Improving local government revenue in NSW: What are the options. Sydney: Local Government NSW.

    Google Scholar 

  • Smith, A. (2014). The wealth of nations. Middletown, DE: Shine Classics.

    Google Scholar 

  • SSC. (2011). Select Committee on the Reform of the Australian Federation; Parliament of Australia. Australia’s federation: An agenda for reform. Canberra: Senate Printing Unit, Parliament House.

    Google Scholar 

  • Tiebout, C. (1956). A pure theory of local expenditures. Journal of Political Economy, 64(5), 416–424.

    Article  Google Scholar 

  • Twomey, A. (2012). Always the bridesmaid—Constitutional recognition of local government. Monash University Law Review, 38(2), 142–180.

    Google Scholar 

  • Twomey, A., & Withers, G. (2007). Federalist paper 1: Australia’s federal future (A Report for the Council for the Australian Federation).

    Google Scholar 

  • Wickwar, W. H. (1970). The political theory of local government. Columbia: University of South Carolina Press.

    Google Scholar 

  • Williams, G. (2010). Local Government requires financial recognition. Government News June 21. http://www.governmentnews.com.au/2010/06/21/article/Local-government-requires-financial-recognition/VMGADMKVEI.html. Accessed October 25, 2011.

Download references

Author information

Authors and Affiliations

  1. Institute for Public Policy and Governance, University of Technology Sydney, Sydney, New South Wales, Australia

    Joseph Drew & Bligh Grant

Authors
  1. Joseph Drew
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Bligh Grant
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Joseph Drew .

Rights and permissions

Reprints and permissions

Copyright information

© 2017 Springer Nature Singapore Pte Ltd.

About this chapter

Cite this chapter

Drew, J., Grant, B. (2017). The Future of Local Government in Australia: Maximising Service Delivery with Political Voice. In: Local Government in Australia. Springer, Singapore. https://doi.org/10.1007/978-981-10-3867-9_12

Download citation

Publish with us

Policies and ethics

Search

Navigation