Department of Planning, Transport and Infrastructure, $501,908,000

Administered Items for the Department of Planning, Transport and Infrastructure, $10,022,000

Membership:

Mr Goldsworthy substituted for Mr Pederick.

Mr Tarzia substituted for Mr Pengilly.

Minister:

Hon. G.G. Brock, Minister for Regional Development, Minister for Local Government.

Departmental Advisers:

Mr A. McKeegan, Acting Deputy Chief Executive, Planning, Department of Planning, Transport and Infrastructure.

Mr M. Petrovski, Director, Office of Local Government.

The CHAIR: I declare the proposed payments open for examination. I will not read the whole statement, but I remind members that, if they ask a question, they preface it with the line of expenditure. I ask the minister to make an opening statement if he needs to.

The Hon. G.G. BROCK: Thank you, Madam Chair. As the shadow minister is aware, I have a strong background in local government (as does the shadow minister) from personal experience as a councillor and then mayor of the Port Pirie Regional Council. I am a very passionate supporter of local government and have already visited many councils, including many regional councils, given my interest in the responsibilities of regional development.

Due to recent machinery of government changes, the Office for Local Government was established in the planning division of the Department of Planning, Transport and Infrastructure. This change took effect from 1 July 2014. The Office for Local Government is a small unit responsible for providing advice to the Minister for Local Government on:

the constitutional operations of the local government system, including legislative framework, governing councils;

the relationship between the state government and councils and other associated representative groups, including the State-Local Government Relations Agreement;

whole-of-government and legislative frameworks as they affect local government; and

and the statutory authorities that are responsible to the Minister for Local Government.

The statutory authorities are the Local Government Grants Commission, the Outback Communities Authority and the Boundary Adjustment Facilitation Panel.

As indicated by the Premier, all government boards and committees will be abolished unless it can be demonstrated that they have an essential purpose that cannot be fulfilled in an alternative way. The authorities I have just referred to are part of that review, and I look forward to considering these matters. The aim is to remove duplication of effort and red tape, as well as providing communities with other ways of more directly accessing the government.

In South Australia, councils are primarily accountable to their communities for the policies they make, the decisions they take, the service and infrastructure they provide, and the rates and charges that they levy. In performing their functions, councils must abide by the Local Government Act 1999 and associated regulations.

While being responsible to the parliament for the local government legislative framework, as minister I do not seek to intrude on the day-to-day activities and decisions of councils. With this relative independence from state government supervision of daily activities, comes significant responsibility for councils to be engaged with and be accountable to their communities.

I issue a challenge to all councils to continue to strive towards the highest standards of accountability and transparency. Councils are free to develop best practice standards in these areas without waiting for legislative requirements to set the bar. That is a sign of good government and leadership—the cultural motivation to improve and do more. This includes consulting carefully about significant policy decisions, using coercive powers strictly according to the law, listening and responding to complaints fairly, and promoting the best interests of their communities.

It is important to note that councils, like other public sector entities, are subject to the jurisdiction of independent investigation bodies such as the Ombudsman, The Office for Public Integrity, and the Independent Commissioner Against Corruption. Local government legislation has been amended in the last 12 months to clarify and strengthen the role of these bodies in respect of local government.

For example, if I believe that a particular council has committed a serious breach of the law I must now report the matter to the Ombudsman rather than directly appointing an independent investigator. Under the act, I have powers to take appropriate action against the council only after receiving an adverse report from the Ombudsman. These changes provide strength and objectivity to the external oversight of the conduct of council's affairs for the public's benefit.

Over the past 12 months, I am advised, a previous minister responsible for local government legislation introduced a number of other reforms, including introducing mandatory codes of conduct for council members and staff and remaking three sets of regulations impacting local government. In addition, a package of proposed amendments to local government legislation was developed to:

improve local government accountability and governance;

improve local government elections;

implement recommendations made by the Ombudsman as a result of his investigations and audits of local government matters; and

make miscellaneous amendments to achieve a more consistent and contemporary legislative framework for the local government sector.

I have advised the president of the Local Government Association that I intend to take a fresh look at the bill developed at the end of last year and consider other relevant reforms that have arisen since then ahead of seeking to introduce a comprehensive local government amendment bill in early 2015.

I am very keen to work closely with the LGA and councils, for instance, in finding new ways for local government to play a greater role in driving economic development in their communities, especially with the transition of our state economy from traditional manufacturing to growth industries, such as health services and mining and resources. I am also keen to encourage local government to develop greater asset and expertise-sharing arrangements across councils and regions.

South Australia has a long tradition of constructive working relationships between the state government and local government for the benefit of our shared constituency. Although there will, no doubt, be times when we need to agree to disagree, especially when there are resource constraints on both spheres of government, I intend to build on the constructive relationships that exist between the state government and local government, a relationship that is based on cooperation and mutual respect.

Significant achievements in the local government field have included successful completion of the review of the Local Government Grants Commission funding distribution methodology. It should be noted, however, that announcements in the recent commonwealth budget will have significant negative impacts on the commission's capacity to support South Australian councils through general financial assistance grants, especially local road funding.

In addition, the Outback Community Authority successfully introduced the community contribution scheme in Andamooka to assist with the development of infrastructure and services in Andamooka, with the agreement of the local community. In 2014-15, it is proposed to implement a similar scheme in Iron Knob.

In conclusion, I would like to comment on the upcoming 2014 council elections in November this year. I would like to see all of us who are in a leadership position promoting the importance of participating the local government election process, especially by encouraging local people to nominate as candidates for election to council, thereby strengthening the electoral process by ensuring that there is a good range of candidates, and by encouraging eligible voters to cast their vote.

Low voter turnout presents an easy opportunity for detractors of local government to be negative about the role of councils as democratic institutions. Local government is the tier closest to the people in their everyday lives. As a state, we should all work together to make local government more effective and efficient in order to best serve the interests of our communities.

Mr GRIFFITHS: I recognise the comments from the minister to emphasise the importance of local government. I think it is something like 10,000 employees and between $19 billion and $20 billion worth of assets, and they attempt to serve Australians as best they possibly can. I suppose that is why I am a bit disappointed that the budget papers shows only two pages or thereabouts for the Office of Local Government. Minister, all my questions will refer to Budget Paper 4, Volume 3, pages 86 or 87. Minister, can you advise what level of involvement you have had with the Emergency Management Council in ensuring the adequacy of the State Emergency Management Plan?

The Hon. G.G. BROCK: I am not on that emergency management committee. There is a representative from the LGA on there, but not under my portfolio.

Mr GRIFFITHS: Minister, I am not referring to the committee; I am referring to the council which is, indeed, made up of ministers. My understanding is that the Minister for Local Government is a member of that?

The Hon. G.G. BROCK: To answer the question, I have not been advised if there has been a meeting of that council, at this stage, with the necessity for me to attend.

Mr GRIFFITHS: I have to ask a supplementary about that, given the concerns that so many South Australians have expressed in relation to Clovelly Park and Mitchell Park, and not just that immediate area. Your answer does not deny that your ministerial responsibility includes being on that council but just that you have not been involved in it. I would have to presume—and I am sure everybody would—that the council met before it became public about the contamination. So, is it an innocent oversight or a deliberate action, or has someone on your staff not told you about a meeting? I can find a budget reference for it.

The Hon. G.G. BROCK: Madam Chair and member for Goyder, it is a bit involved; I will ask Mr Petrovski to explain that for us.

Mr PETROVSKI: The council derives its advice through DPC; there is a special section that actually produces the agenda and gathers advice from relevant agencies around government. Historically, the Office for State/Local Government has not played a role in the content of the agenda or providing advice unless there has been incidental advice sought from our office that might be used to advise the whole of the membership. We do not provide direct advice to the Minister for Local Government as a member of that group.

Mr GRIFFITHS: I appreciate the response. Therefore, if you act upon a request from the Department of the Premier and Cabinet, can I presume that it is a deliberate action, or is it just an inability to govern properly where the Department of the Premier and Cabinet has not ensured that a minister who has the responsibility and who, as I viewed on the website this morning, is certainly appointed to that council has not been involved?

The CHAIR: That question would be better put to Premier and Cabinet, wouldn't it?

Mr GRIFFITHS: Chair, there are others in this chamber who will tell me how long, but I think it is 22 or 23 days that it has been in the media. And this especially relates to the impact upon Marion Council and its residents, and I will lead into some questions about that, too. But, minister, are you trying to tell me, therefore, that you have not sought a briefing on it? For example, have you had your staff identify that you should have been involved in discussions? Has anyone looked at the Emergency Management Council to say, 'Oh, hell, Mr Brock's meant to be there, we should have told him about this,' because I am struggling to understand why you have not been.

The Hon. G.G. BROCK: I will take that question on notice and get more clarity on that. I have not got the information here.

Ms WORTLEY: I have a question in relation to Budget Paper 4, Volume 3, page 86 to 89. Can the minister please inform the committee on the assistance being provided to small and remote councils that may face challenges in meeting the cost of improving their financial governance?

Mr GRIFFITHS: Point of order: the question is actually wrong. It is page 86 to 87, not 86 to 89.

The CHAIR: Again, let's not waste time and get on with the answer to the question.

The Hon. G.G. BROCK: I can advise that in April 2012, the minister for state and local government relations committed $150,000 over four years—that is from 2012-13 until 2015-16—to underwrite practical assistance being provided by the Local Government Association for the smallest regional councils. The emphasis of this program is to improve the core financial and asset management skills of councils and enable them to participate more fully in and benefit from a wide range of reforms that have been jointly initiated by the commonwealth government, the Local Government Association and the former office of state and local government relations.

The funding is being used to tailor assistance at the individual council level. A feature of the program is that individual councils determine locally appropriate priorities for the use of most of the available funding. In particular, the program has allowed small regional councils to make the most of opportunities provided by the commonwealth government's Local Government Reform Fund, a project which provided funding of $2.5 million for SA councils overall.

The district councils of Kimba and Elliston were both provided with funding to enable two highly-regarded officers to participate in a professional leadership program delivered by the Local Government Managers Australia in conjunction with the Executive Education Unit of the University of Adelaide. Elliston, on the West Coast, also was provided hands-on assistance with budget, rating and other financial governance matters.

On an ongoing basis, the Local Government Association provides access for eligible councils to practical support and troubleshooting assistance from one of its officers with expertise in council budgets, annual business plans, long-term financial plans, treasury management and interpretation of Australian accounting standards. Recently, funding of $6,000 was approved to assist Coober Pedy council with the cost of several initiatives—

Mr TARZIA: Point of order: the minister seems to be reading, and I hate to—

The CHAIR: Member for Hartley, there is no point of order. Ministers read answers all the time. Stop being frivolous. No point of order.

Mr TARZIA: The member is reading from government answers.

The CHAIR: Minister.

The Hon. G.G. BROCK: I take offence to that, Madam Chair.

The CHAIR: We are not going to pay any more attention to that. Please continue and ignore them. They are being unparliamentary, and I will remind them all of standing order 272, and if it continues there will be trouble.

The Hon. G.G. BROCK: The funding to Coober Pedy council assisted with costs in developing council policies on service range and levels, better integrating the council's infrastructure and asset management plan with its long-term financial plan, and developing a budget monitoring and reporting framework which provides clear links to the council's suite of strategic management plans.

During 2012-13, the minister’s funding commitment was matched by the LGA, resulting in a $300,000 fund available for meeting the specific needs of 13 small regional councils with relatively low financial capacity across the state. The councils involved in the program are: Cleve, Coober Pedy, Elliston, Finders Ranges, Franklin Harbour, Karoonda East Murray, Kimba, Mount Remarkable, Orroroo Carrieton, Peterborough, Southern Mallee, Streaky Bay, and Wudinna.

Just going back, Madam Chair: some of the outcomes of the program including an amount of $52,000 was allocated to all eligible councils ($4,000 each) to provide additional support beyond that already provided to these councils within the LGA’s Business Partners Program. The program helped all regional councils to improve their infrastructure and asset management plans and long-term financial plans, and to ensure that these plans generally are consistent with each other, and with each other’s councils’ affordable service levels.

An amount of $124,000 was allocated to augment separate funding available to the eligible councils through the commonwealth government’s Local Government Reform Fund. That project included the implementation of a wide range of collaborative opportunities to build regional capacity.

An example of one activity initiated by the LGA involves a videoconferencing pilot program which links a regional cluster of councils with each other, and with training room facilities at LGA House. Karoonda East Murray and Southern Mallee were provided with funding to assist them to jointly establish an internal controls regime under the guidance of a national firm expert in that field.

Further examples of the kind of hands-on experience that could be provide in 2014-15 are:

to establish an internal controls regime, adopting a successful project between Karoonda East Murray and Southern Mallee;

support with annual business plans, budget monitoring and reporting;

subsidising attendance of council members and staff at relevant LGA and other training programs; and

encouragement and support for a shared services initiative.

Mr GRIFFITHS: If I can come back to my questions in regard to the Emergency Management Council. Minister, you have advised the committee that you are going to provide an update at a later time; I am not sure when that will occur. It might be hard for you to do given that we only have 33 minutes left. When did you first become aware of the contamination concerns at Clovelly Park?

The Hon. G.G. BROCK: Madam Chair, I think this is delving into what is being discussed in cabinet; therefore, I will not be making any comment on that.

Ms CHAPMAN: It is just asking you if you were aware.

Mr GRIFFITHS: Minister, I—

The CHAIR: The minister is able to answer the question any way he wishes. Do you have another question, member for Goyder?

Mr GRIFFITHS: I do, and it is on this area too, Chair, and this is not a cabinet issue, but indeed the City of Marion. Have you had contact with the City of Marion—one of your 68 council constituents—about Clovelly Park? Have you met with Mayor Felicity-Ann Lewis, for example, and their CEO, and asked what you can do on their behalf within the Emergency Management Council, or within cabinet, or within any government process?

The Hon. G.G. BROCK: I have had discussions through the LGA. I have not personally spoken to the council itself, but certainly I have had discussions with the LGA, through the president and the chief executive.

Mr GRIFFITHS: As I understand it, the Mayor of Marion is the Australian Local Government Association Chairperson, just to clarify that for the record. Minister, the CE and the Chair of the LGA do not reside within Marion. They do not have the intimate relationship with the residents of Marion. Mayor Felicity-ann Lewis is that person to actually speak to. Is it the intention post-today that contact be made?

The Hon. G.G. BROCK: My information is there is a process in place for the EPA and councils to discuss their issues. At that particular point, I did not see that it was necessary for me to get personally involved but, taking on board your comments, post this here I will be organising a meeting with the council.

Mr GRIFFITHS: Chair, I will go to a different question area, if I may.

The CHAIR: Good.

Mr GRIFFITHS: I thought that would please you. This is still on the same page reference though, but it is about the constructive relationship between different levels of government. Minister, are you aware of issues that occurred last Friday in the federal parliament about the Roads to Recovery funding program, and what actions have you undertaken since the decision that occurred on Friday?

The Hon. G.G. BROCK: I am sure we all agree here that the level of financial assistance to the LGA and all councils across South Australia is a concern. As to what happened in the federal parliament the other day, yes, I have been advised that it never got through and is still sitting there. Secondly, I have arranged for a meeting directly with minister Truss, who is responsible for that, and that should be within the next four weeks.

Mr GRIFFITHS: Again, minister, are you able to confirm what the potential impact in dollar value in the 2014-15 year is on South Australian local government?

The Hon. G.G. BROCK: Before I answer that, member, I want to get my facts correct. I am advised that we do not have the actual figures from the federal government at this particular point. One of the things I will reinforce here is that I am concerned about the $18 million that is lost to the supplementary local roads funding.

I am also concerned, as we all would be, about the cessation of the pensioner concessions payment to the state government, which has been honoured this year by the Treasurer. Next financial year, we do not know where that is going to go. I have some concerns about the Financial Assistance Grants (FAGs) funding not being indexed for the next three years. Certainly, I am advised that we have not had the figures submitted by the federal government at this stage. I met with the Local Government Grants Commission last week to get an update on where they currently are.

Mr GRIFFITHS: I appreciate that additional information. For the record, I might tell you it is $31.48 million for Roads to Recovery, which goes through to the 2018-19 year, including an additional $31.48 million in the 2015-16 year. So you are nodding your head now but after I have told you the figures. Obviously, I am pleased that you are aware of the decision and pleased that you have made contact with minister Truss for a meeting with him. I would have thought that a staff member sitting next to you would have had that detail available because it goes to the crux of the matter and is significant.

The CHAIR: Let's move on to a question that relates to the budget lines.

Mr GRIFFITHS: Minister, you are rather unique, and I use that term again because you are. In addition to attempting to contact minister Truss and talk to him about it, is it your intention to talk to other parties who were involved in the attachment of amendments to the legislation which made it necessary for the Coalition to withdraw the legislation? You can put the perspective as an Independent member, ask them to respect what they have done and what the implications of it are.

The CHAIR: The question really needs to relate directly to a budget line, member for Goyder, but the minister may wish to make a comment.

The Hon. G.G. BROCK: Yes, it is my intention to organise meetings with those people, but my main concern is to talk to the federal government to ensure that the funds will run through to the local councils—and I want more funds going through—but certainly the arrangements are being made at the moment to try to talk to as many people as we can. As you know, from memory, the federal government is in recess at this particular point, but I will be making appointments to talk to the people who put their amendments up.

Mr GRIFFITHS: If I can go to a different question now, minister, still on page 86. I am particularly interested in the Premier's State/Local Government Forum. Can the minister advise if the commitment made by the Labor Party prior to the election for the Premier's State/Local Government Forum to meet at least three times per year will actually be upheld?

The Hon. G.G. BROCK: The Premier's State/Local Government Forum is very important, and part of the agreement is to have three a year. That is with the Department of the Premier and Cabinet at the moment. We do not have actual dates, but certainly it is going to happen as far as I am concerned and we just do not have the dates at this particular point. The forum is very important and it was part of the agreement.

Ms HILDYARD: I refer to Budget Paper 4, Volume 3, pages 86 to 87. With regard to the commonwealth budget impacts on local government, what pressures do South Australian councils now face in the areas of local road funding, financial assistance grants and payment of concessions to part-pensioners and seniors?

The CHAIR: That has sort of been covered, I think. Is there another question?

Ms HILDYARD: Unless you have something to add, I can ask another question.

The Hon. G.G. BROCK: I think I explained that a minute ago.

Ms HILDYARD: Is it okay if I ask something?

The CHAIR: Another question, yes.

Ms HILDYARD: The next question I have is in relation to Budget Paper 4, Volume 3, pages 86 to 89. I note that the program name—

Mr Griffiths interjecting:

Ms HILDYARD: Pages 86 to 87, sorry. I note that the program name has changed to Office of Local Government for 2014-15. Can you advise the committee about the background to this name change?

The Hon. G.G. BROCK: I can confirm for the committee that there has been a change in the agency arrangements supporting the local government portfolio. On 22 May 2014 the Governor in Executive Council approved several changes to the legislation committed to me as Minister for Local Government. The following additional legislation was committed to the Minister for Local Government: the Outback Communities (Administration and Management) Act 2009 and the South Australian Local Government Grants Commission Act 1992.

These acts are in addition to the existing legislative responsibilities for local government, which are comprised of the Local Government Act 1999, the Local Government (Elections) Act 1999, and other minor local government-related acts. At the same time, the ministerial powers and functions under chapter 11 of the Local Government Act 1999, that is, provisions relating to dealing with local government land, were conferred to the Minister for Planning.

On 1 July 2014, changes were made to administrative arrangements for agencies, reflecting the changes to legislative responsibilities. The Outback Communities Authority and the South Australian Local Government Grants Commission's functions and staff were transferred from PIRSA to a new Office of Local Government, situated within the planning division of the Department of Planning, Transport and Infrastructure.

The state/local government relations functions and staff were transferred from the Department of Premier and Cabinet to the Office of Local Government. These administrative changes will assist in delivering an integrated approach to local government portfolio matters.

The changes will bring together the three statutory authorities closely related to the work of councils, the Local Government Association and legislation, and a significant part of the responsibility for the relationship between state and local government. The newly formed Office of Local Government comprises 24.1 FTE positions, 15 of which have been transferred from other agencies to DPTI.

Mr GRIFFITHS: On the same budget reference, we have asked the question about the state government local forum, but I am interested in the State-Local Government Relations Agreement. I am aware that a draft was released in October last year when the forum was held. When will the relations agreement be signed and released?

The Hon. G.G. BROCK: The State-Local Government Relations Agreement, as you are aware, was first signed by the Premier, the president of the Local Government Association and the then minister for local government in 2004. The agreement articulates the aspirations of the two spheres of government, with the aim of delivering greater benefits for the South Australian community through more strategic collaboration.

The agreement provides the framework for state and local government to work together in a mature and collaborative relationship. It is in two parts: the agreement itself, which sets out the principles of engagement between the state and local government, and a schedule of priorities that outlines annual priorities for each joint action.

A new schedule of priorities was agreed to at the October 2013 forum. However, details of the agreement are still being negotiated with the Local Government Association. It is expected that the agreement will be finalised in the near future. The documents will be signed by the Premier, the president of the LGA and myself, as Minister for Local Government; and that form is with the Premier at the moment.

Mr GRIFFITHS: Just for clarification, if I may; given that councils have to go into caretaker convention, I can only presume that an agreement will not be signed at the time of caretaker because they, in their individual roles as elected members in the first place, are unable to make commitments. Therefore, is it your expectation that we will have something before that early September date, or do we have to wait until after a November election date?

The Hon. G.G. BROCK: It is not relevant to caretaker mode; it is between the Local Government Association and the state. Every attempt is being made to get that signed, hopefully before caretaker mode.

Mr GRIFFITHS: An easy one: what is the current level of total local government borrowings?

The Hon. G.G. BROCK: Highlights of the summary available on councils' finances are that local government as a whole recorded an operating deficit of $1 million in 2012-13, that is after adjusting for the early receipt of federal financial assistance grants in June 2013. The sector's annual operating deficit has reduced steadily over the last decade or more. The very small or adjusted operating deficit of $1 million in 2012-13 compares with an operating deficit of $75 million in 2000-01.

Local government taxation revenue—that is from general and other rates on properties—was $1.3 billion in 2012-13. Together with their own sources of funding (mainly user charges), approximately 85 per cent of local government income is derived from its own sources. Local government net financial liabilities, being the most comprehensive measures of a council's indebtedness, at 30 June 2013 was $536 million, which is equivalent to 28 per cent of local government income in 2012-13. This compares with a figure of 36 per cent in 2000-01.

The sector's level of indebtedness of $536 million is significantly low when put into context of the depreciated land value, buildings, road infrastructure and other non-financial assets as at 30 June 2013, which totals approximately $21 billion. Gross capital expenditure in recent years has averaged approximately $600 million, of which nearly half has been expenditure on renewing and replacing existing assets. While the financial performance and position of local government as a whole has improved significantly over the last decade or more, it should be noted that the current financial condition of individual councils varies substantially.

An independent financial sustainability inquiry of councils initiated by the LGA in 2005 highlighted that, under their then existing revenue and expenditure policy settings, a significant number of councils were financially unsustainable in the longer term. A critically important approach used by many councils in addressing physical imbalances has been to phase out operating deficits in a manageable way, thus avoiding excessive rate increases or dramatic cuts in services. Nevertheless, council members often were presented with and continue to face weighty financial challenges, and that is an issue that we have to face.

Mr GRIFFITHS: I have a point of clarification on that response. Minister, I believe you referred to the $536 million in net debt and you also referred to 28 per cent of revenue that that represented. My interpretation would be that that debt means the outstanding principal of loans. Given that loans have to be repaid with an interest component, do you have the figures in front of you of the principal and interest payments, and what percentage of revenue that equates to?

The Hon. G.G. BROCK: No, we do not have that information here. To get that information we would have to go to each individual council for their borrowing criteria and things like that. But we do not have that.

Mr GRIFFITHS: Chair, if I may ask another question: this refers to the response you also gave about avoiding excessive rate increases, and I believe that was the term you quoted. Given your historical involvement in local government and your desire to ensure that service delivery is the best and the most efficient possible for people, from a policy and initiative opportunity within your area of control now, are you able to give us any details on what you are doing to try to decrease the burden of an increase in rates?

The Hon. G.G. BROCK: We are trying to improve the asset management of the sector. As we are all aware, South Australia was the first state to introduce legislation requiring councils to develop and adopt a long-term financial plan supported by an infrastructure and asset management plan. A major package of the amendment to the Local Government Act in 2005 brought into effect a number of key measures to improve financial management practices in local government.

The purposes of a council's long-term financial plan is to express in financial terms the activities that it proposes to undertake over the medium to longer term to achieve its stated objectives. Underwritten by a council's infrastructure and asset management plan, the long-term financial plan enables a council to address the long-term sustainability of its financial performance and position, ensure moneys are available for maintenance, renewal and replacement of existing infrastructure and other assets, and to help make informed decisions based on affordable and responsible service levels.

As stated earlier, councils in South Australia are the custodians of approximately $21 billion of infrastructure and other assets on behalf of their communities. They have an obligation to ensure that existing assets are managed effectively and efficiently and that decisions regarding the acquisition of new assets, the sale of existing assets and the maintenance and renewal of existing assets, are undertaken in an open and transparent fashion. The requirement to have an infrastructure and asset management plan has helped councils to embrace internationally-recognised tools, policies and procedures to meet this challenge.

Other key initiatives for improving financial management and reporting include the implementation of an annual update of the model financial statements brought into operation in 2010 and the more recent requirement for local government auditors to provide an audit opinion about the accuracy of a council's internal controls. That is under the Local Government (Accountability Framework) Amendment Act 2009.

The model financial statements enable councils to prepare their annual financial statements in a manner that is consistent with Australian accounting standards, incorporating the best practice of the state and other local government jurisdictions in Australia. They have materially improved the reliability, comparability and consistency of data publicly available on council finances. They have also led to significant improvements in the level of disclosure in the notes accompanying a council's financial statements.

A feature of the model statements is the accounting policy guidance of practical examples included in the explanatory material throughout the document. Internal controls are central to good financial governance and to issues of accountability and public confidence in the financial reporting of councils.

May I also, Madam Chair, relate to my visits to local councils across all the regions and also within the metropolitan area. We are all striving to get the best practices out there. I had the great privilege, along with the shadow minister, of previously being an integral part of local government. I am sure our hearts are headed in the right direction to take every opportunity, and any suggestion about things that we may be able to do as a state—whether in government or in opposition or in the community—would be welcomed by all councils to ensure that they become aware of that.

I have seen some innovative programs across the regions relating to asset management of road infrastructure, road maintenance and so forth. I had the great pleasure of seeing the Charles Sturt council this week, and they gave me an overview of their asset management program and, whilst it was fairly expensive to establish, that program is giving them a great state-of-the-art opportunity to manage their assets across all the regions.

I am encouraging councils to share resources, whether it be IT systems, payroll system or equipment and things like that. I think that we all need to look outside the square to get the best opportunities to ensure that local government has the least amount of duplication out there and that we work together to ensure that they get the best bang for their dollars.

Mr GRIFFITHS: I respect the commitment in the minister's answers, and I certainly sympathise with him. As he has noted in the past, we both have that background. Minister, in the first part of your response, you referred to 2005 and 2010 changes, whereas my question related to more contemporary issues. The changes from those periods have flowed through. I suppose I relate to current times, and by 'current', I mean the last few financial years and what the future years' projections look like being with respect to financial plans they are trying to put in place.

From your position, and I understand that, prior to this year's budget, there was very little opportunity for you to make substantial changes, but is the challenge you are setting for yourself and the people who work with you about not just looking at innovative approaches that have been undertaken but also looking at what occurs around the world to try to either create a reduction in cost or not necessarily a revenue opportunity but resource sharing?

You have said, I think, that the intention is to open up the Local Government Act later this year for review. How seriously is that review going to look at that fundamental issue, where it comes down to what the property owner has to pay every year in council rates?

The CHAIR: We need to have a very quick answer because we need to wrap up the committee.

The Hon. G.G. BROCK: As I said earlier, I have been across the whole of the state. I have been out to many councils in the regions, and I am now on the journey of doing the metropolitan councils. I am not only listening to the Local Government Association about opportunities but I am also hearing firsthand from each individual council out there. First up, we are going to hear what the councils are saying, what are their challenges, what are the barriers they may see. I have set a challenge for myself and also for my department to look at innovative opportunities, whether it is in South Australia, Australia or anywhere else, to ensure that we get the best and most efficient and effective operation of councils.

Mr GRIFFITHS: My last question is about pensioner concessions. I know that this was a particularly important issue for you prior to the election, when you had a notice of motion up and you were suggesting an increase from, I think, $190 per year to $240. You referred to the challenges in relation to federal decisions that had been made. Is it still your intention to actively pursue this area? I am not sure whether it was one of your charter issues, but I think it was one of the issues you also negotiated with the Premier.

The Hon. G.G. BROCK: It is still my philosophy to pursue not only pensioner concessions but also other concessions. I said earlier that I am disappointed that the federal government did cease the payment to the states which was going towards pensioner concessions. This is a discussion I will be having with the relevant federal minister when I get across to Canberra.

As for the supplementary local roads funding, we as a state need to work together to ensure that we get that reintroduced because, if we do not, someone has to pay for it. I certainly want to be able to pursue every opportunity to have that reinstated—as the member for Goyder would want to, and I hope that would be his direction—and also to look at increasing that. Certainly, it is a challenge I have taken on board, and it is not off my radar.

The CHAIR: There being no further questions, I declare the examination of the proposed payments completed, and I thank the minister and his advisers for their time here this morning.

Sitting suspended from 12:29 to 13:30.