Local Government (Defaulting Council) Amendment Bill

Introduction and First Reading

The Hon. G.G. BROCK (Stuart—Minister for Local Government, Minister for Regional Roads, Minister for Veterans Affairs) (15:50): Obtained leave and introduced a bill for an act to amend the Local Government Act 1999. Read a first time.

Second Reading

The Hon. G.G. BROCK (Stuart—Minister for Local Government, Minister for Regional Roads, Minister for Veterans Affairs) (15:50): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation and explanation of clauses inserted in Hansard without my reading them.

Leave granted.

The Local Government (Defaulting Council) Amendment Bill 2022 (the Bill) will amend the Local Government Act 1999 (the Local Government Act) to extend the period of administration in the District Council of Coober Pedy until the local government periodic elections due to be held in 2026. It will also cause the periodic election for the Council, for which voting closes in November 2022, to cease to be held.

On 24 January 2019, the then Governor, His Excellency, the Hon Hieu Van Le AC, issued a proclamation declaring the District Council of Coober Pedy (the Council) to be a defaulting council pursuant to section 273(5) of the Act and appointed Mr Timothy Robert Sandford Jackson to be the administrator of the affairs of the Council.

This proclamation was made on the basis of a 2018 report by the South Australian Ombudsman, which demonstrated serious failings and irregularities in the conduct of affairs at the Council, particularly in relation to the Council's negotiation of a power purchasing agreement with EDL Pty Ltd.

The Ombudsman was of the view that this process demonstrated 'one of the most serious examples of maladministration in public administration' that he had observed since the relevant provisions of the Independent Commissioner Against Corruption Act 2021, as in place at that time, were enacted.

Subsequently, the Ombudsman's findings were supported by a lengthy examination of the Council by the Auditor-General that was released on 4 December 2018. The Auditor-General also identified significant failings and deficiencies in the Council's financial management and position.

Members may also recall that in November 2019, Parliament passed a Bill to amend the Local Government Act to extend the period of the Council's administration. At that time, all council administrations were limited by the Local Government Act to a maximum period of 12 months. Given that the decision to place a council in administration must always be based on serious failings or irregularities at a council, this was considered to be insufficient time for all administrations to put a council to rights and was extended to 24 months in all cases.

However, at that time, the very difficult circumstances in Coober Pedy were also recognised, with administration at this Council extended for the whole council term – that is, until November 2022.

These circumstances largely arise from the Council's role – which is unique amongst all South Australian councils – to provide not only what are usually considered to be municipal services (roads, waste management and the like), but also essential services – water, wastewater, and electricity retail services. This has meant that the long history of mismanagement at the Council, as demonstrated by the Ombudsman and the Auditor-General, has had an enormous impact on all services in the town. In turn, this has meant that resolving these issues is not a straightforward matter.

While I commend the Council's Administrator, Mr Tim Jackson, for the commitment he has shown since his appointment in 2019 to turn things around for the Council and the community, and recognise the significant improvements in the Council's financial governance and administration, the reality is that there is a long way to go. The Council cannot yet be considered to be financially sustainable. The essential services in the town, particularly the water service, cannot yet be regard as running securely and efficiently for the future.

I can assure members that the Government is committed to finding a solution that will work for Coober Pedy in the long term. It will take time, however, to determine how one of our most remote communities can best be supported through local governance and services that best fit its needs.

The extension of the administration will allow for this time. I should note that while this Bill will set a maximum time for the administration for a further four years, the administration may end sooner than this if matters are resolved.

The Bill also recognises that for the administration to be continued, the election process that is now underway for all councils, including the District Council of Coober Pedy, must be stopped. Recognising the importance of local government elections in all communities, putting this before Parliament is not a decision that has been made likely. However, as I have described, it is necessary.

I also recognise that the consideration of this Bill coincides with the first steps in the 2022 election process that is now underway, as nominations for Council closed on 6 September.

I am advised that there have been two nominations for Council. I recognise that if this Bill passes, the election of these two people will not take effect but commend those that have nominated for the commitment to their community that has prompted their nomination. I trust that this commitment will also be demonstrated through support for the town's administrator, if the administration is extended as this Bill proposes.

I commend the Bill to Members.

EXPLANATION OF CLAUSES

Part 1—Preliminary

1—Short title

This clause is formal.

Part 2—Amendment of Local Government Act 1999

2—Amendment of section 273—Action on report

This clause amends section 273 of the principal Act to change when the District Council of Coober Pedy ceases to be a defaulting council under Chapter 13 Part 3 Division 1 of the principal Act to the conclusion of the periodic elections due to be held in 2026 (unless a proclamation under section 273(16) is made before that time).

Schedule 1—Transitional provision

1—Periodic election

This clause sets out a transitional provision that provides that the periodic election in the District Council of Coober Pedy for which voting closes in November 2022 will cease to be held from the commencement of the provision and anything done for the purposes of the election will be taken to be void and of no effect.

Debate adjourned on motion of Mr Telfer.