Ombudsman Investigation, Local Council

Mr FULBROOK (Playford) (15:09): My question is to the Minister for Local Government. Can the minister advise the house what action he will be undertaking concerning a recent Ombudsman investigation into an unnamed council, along with any other relevant matters?

The Hon. G.G. BROCK (Stuart—Minister for Local Government, Minister for Regional Roads, Minister for Veterans Affairs) (15:10): I thank the member for Playford for his question. I note media reports regarding a recent report which found that a council, which is unnamed by the Ombudsman, committed maladministration in relation to its chief executive officer's vehicle expenses. As we know in this house, as required by the Ombudsman Act a copy of this report was sent to me. However, I reiterate that the Ombudsman chose not to identify the subject of the investigation.

The Ombudsman made no recommendations in his report on this matter; however, he urged the council to ensure that such matters were conducted in a clearer manner in the future. On my part, I am preparing a letter to the council expressing my grave concerns about the Ombudsman's findings and asking to be fully informed by the council about what action it will take and what systematic change will be implemented to ensure this matter is resolved and does not occur again.

I expect this particular council, and all councils across all of South Australia, both metropolitan and regional, to properly manage CEO salaries and conditions of employment through clear, transparent, well-documented processes and good decision-making. For members' information, the ability of councils to do this will be supported by the new system now in place, through the previous government, which has tasked the Remuneration Tribunal of South Australia to make a determination setting out appropriate remuneration for all council CEOs.

I am advised that the first determination of the tribunal is expected later this year. This independent assessment should provide both councils and their communities with confidence—and I say this with clear confidence—that their CEOs are being paid appropriately. The role and performance of a CEO in a local council is critical to its success. I reiterate: it is critical to the success of that council and its community.

The Ombudsman's report highlights the importance of councils having clear oversight of and properly managing all aspects of CEO appointments, from the appointment process to setting and managing appropriate salary and contract conditions, as well as performance management and, where necessary, termination of that particular person if required. It is therefore critical, in my view, that councils have access to advice and support from the Local Government Association and other bodies to ensure they make good decisions in the best interests of their communities and the communities of all of us in this house.

I will be raising this issue with the LGA as part of my ongoing discussions about how, together, we can improve the performance of councils on behalf of our common constituent—the people of South Australia. The recent reforms to the Local Government Act require all councils to ensure that the salary and conditions of their chief executive officer are within the relevant minimum and maximum salary bands determined by the Remuneration Tribunal.

Under the new scheme, 'remuneration' means salary, allowances and other monetary benefits paid or payable to an employee of a council. The tribunal has already initiated its review of the minimum and maximum levels of local government CEO salary conditions in preparation for its first determination, which is expected to be made later this year. I would like to reinforce this: I expect the councils and the LGA to act in a clear and precise direction, and I ask all elected members, when they are doing this, to make the right decision and ensure they do it the correct way the first time.

The SPEAKER: I see there is another of your colleagues—

Members interjecting:

The SPEAKER: Order! I see there was another of your colleagues seeking the call; nevertheless, the member for Flinders has the call.