Legislative Council Fifty-First Parliament, Third Session (51-3) 51 3 Parliament of South Australia Legislative Council published Question Time Local Government LOCAL GOVERNMENT The Hon. S.G. WADE Legislative Council LOCAL GOVERNMENT The Hon. S.G. WADE (14:37): I seek leave to make a brief explanation before asking the Minister for State/Local Government Relations questions about local government. Leave granted. Members interjecting: The President Legislative Council The PRESIDENT: Order! Members should take time on the weekend to read standing orders. The Hon. S.G. WADE Legislative Council The Hon. S.G. WADE: In explanation, the acting ombudsman, Ken MacPherson, today raised serious concerns about the operation of local government in South Australia. Mr MacPherson indicated that there is widespread maladministration in a number of unnamed councils around South Australia, and he raised the prospect of royal commission inquiries into some councils and their activities. In light of the minister's inquiry into the Copper Coast council, which she announced yesterday, and in light of Mr MacPherson's concerns today, does the government support an inquiry into local government in South Australia, or, alternatively an ICAC, or does the government still consider that South Australia, alone in all the states and territories of Australia, is free of mismanagement and corruption? The Hon. G.E. GAGO Legislative Council Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister Assisting the Minister for Transport, Infrastructure and Energy The Hon. G.E. GAGO (Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister Assisting the Minister for Transport, Infrastructure and Energy) (14:38): I thank the honourable member for his question. I am pleased that he has the right minister in this council. The Hon. D.W. Ridgway Legislative Council The Hon. D.W. Ridgway: We would be pleased if you gave us the right answer. The Hon. G.E. GAGO Legislative Council The Hon. G.E. GAGO: Sit back; I have lots for you. I have a comprehensive answer for you, so relax and take it easy. I have been advised that the acting ombudsman, Mr Ken MacPherson, appeared before the Economic and Finance Committee this morning. He raised a number of concerns about having to use his royal commission powers to obtain information from councils relevant to his investigations and his complaints about them. Members interjecting: The President Legislative Council The PRESIDENT: The minister does not need assistance from the people behind her. The Hon. G.E. GAGO Legislative Council The Hon. G.E. GAGO: The Ombudsman plays a key role in the investigations and review of the administrative actions of councils and council subsidiaries, with links to the Local Government Act and the role of the minister. As such, the acting ombudsman is empowered to audit councils' administrative practices and procedures. I recently met with Mr MacPherson in his current capacity as acting ombudsman, and we had a preliminary discussion about some of his concerns. We agreed to meet on a regular basis to look at issues of greater accountability for local councils. I have also been having discussions with the LGA, which also raised with me accountability issues. It is important to remember that local government is a sphere of government in its own right and, as such, it should strive to meet the highest public sector standards of transparency and accountability. Certainly, in my new role as Minister for State/Local Government Relations, I am very keen to assist local government to achieve that wherever I can. In terms of some of the things that have been put in place to address the sorts of issues that the acting ombudsman raised today, the council can be assured that I am currently reviewing the external audit framework for local government, and I am looking at appropriate legislative amendments, taking into consideration the former auditor-general's comment (Mr Ken MacPherson). He has raised these issues a number of times in a number of forums. I will also consider the accountability framework within which councils operate more broadly. External audit is obviously a key accountability mechanism, but it is clear to me that there are also other mechanisms that need to be better understood and/or improved that will further enhance councils' accountability and transparency to their communities. For example, there are various ways in which the local government administration is subject to external independent review, such as the Ombudsman's powers to deal with complaints and to conduct audits of administrative practices and procedures and the minister's power of investigation under the Local Government Act. Councils are also required to have their own internal review processes, such as audit committees and internal grievance procedures, to provide an avenue for formal review of decisions by employees of the council and other persons acting on behalf of the council. I am also considering improvements in other provisions such as requirements for the prudential management, public consultation and councils' public consultation policies, procedures for internal review of councils' decisions, and also decisions around council members' access to council information. These internal and external review processes need to be better understood and communicated so that the community and councils are clearer about them and how they interrelate. As to the issue of an ICAC, a number of provisions are already available, such as the Auditor-General's powers of audit, which are equivalent to commission powers of investigation. I have ministerial powers to investigate and to prescribe certain actions. Of course, there are also the police and the Anti-Corruption Branch of the police, which have powers to investigate serious problem behaviours. As you can see, a number of safeguards are already in place, and a number of initiatives have already been undertaken to improve the audit, accountability, openness and transparency of local government.