REGIONAL SUBSIDIARIES

The Hon. J.S.L. DAWKINS (15:04): I seek leave to make a brief explanation before asking the Minister for State/Local Government Relations a question about regional subsidiaries under section 43 of the Local Government Act.

Leave granted.

The Hon. J.S.L. DAWKINS: On 3 December 2009 this council passed the Local Government (Accountability Framework) Amendment Bill, which amended the Local Government Act 1999. On 1 December 2009, during the committee stage of the passage of the bill, I sought a commitment from the then minister for state/local government relations in relation to regulations that would exempt small regional subsidiaries, such as regional local government associations, from the requirement to establish an audit committee.

On 22 June 2010, I asked the then minister whether the regulations had been finalised, citing the specific example of the Murray Mallee Local Government Association. The then minister said:

In terms of the regulations, I am advised that work has commenced. However, they have not been finalised as yet. They will be completed as soon as we can possibly get them done.

On 29 September 2010, three months after legislation came into operation, and still not having sighted the regulations, I again asked that this matter be expedited in the best interests of these regional subsidiaries. The then minister stated:

I know that I did consider these issues. I know that I was also sympathetic to the concerns they raised and did seek advice…In fact, I understand that the regulations are expected towards the end of this year.

I have been advised that regional local government associations have still not sighted the regulations exempting them from the legislative requirement to establish an audit committee. Given that it is now 15 months since I first raised the issue, and eight months after the legislation came into effect, I ask the new Minister for State/Local Government Relations the following:

1. When will the regulations be introduced?

2. Will the minister expedite this issue to give regional subsidiaries peace of mind?

3. Will the minister agree to reimburse regional subsidiaries who, in complying with this legislation, may have incurred unnecessary costs to their detriment?

4. Will the minister, in good faith, show leniency to regional subsidiaries who may not have complied with the legislation, having relied upon the former minister's undertaking in June 2010, before the legislation was operational, to exempt them by regulation?

The Hon. B.V. FINNIGAN (Minister for Industrial Relations, Minister for State/Local Government Relations, Minister for Gambling) (15:07): I thank the honourable member for his question. My colleague the Hon. Gail Gago was minister at the time that the amendment legislation the Hon. Mr Dawkins refers to was passed and, of course, any undertaking she gave as minister at that time I would expect the government would honour.

In relation to regulations under that legislation, there are quite a number of areas where regulations can be made under the act, particularly under the amendments that were made to the act in 2009. I am certainly aware that the agency for state/local government relations is working on a number of draft regulations in relation to the provisions of that amendment bill; a number of things are provided for in that legislation.

I will find out more information for the honourable member in relation to the particular example he has cited and find out where that is at so that a draft regulation can be provided as soon as possible. However, I believe discussions have been taking place in relation to draft regulations that might be made under those amendments.