BUILDING CAPACITY IN SMALL REGIONAL COUNCILS PROGRAM

The Hon. G.A. KANDELAARS (14:49): My question is to the Minister for State/Local Government Relations. Will the minister provide to the chamber information regarding the new program jointly funded, I understand, between the state government and the Local Government Association that will help councils to improve their core financial services and asset management programs?

The Hon. R.P. WORTLEY (Minister for Industrial Relations, Minister for State/Local Government Relations) (14:49): I thank the honourable member for his very important question. I recently attended the 2012 Local Government Showcase and General Meeting and announced the $150,000 Building Capacity in Small Regional Councils program. This funding will go some way to reducing the adverse impacts caused by isolation and small constituencies on small regional councils.

The concept of this grant was conceived while visiting outback communities and regional councils. It was made quite evident that, while there are certain provisions and requirements for councils to improve their financial and asset management, those out in the regions who have small rate bases and very large land mass were having difficulties in providing the expertise to comply with these provisions. So we believe that it is quite necessary to provide some support for these smaller councils by way of training and the like.

In discussions with the Local Government Association, it has agreed to match this, so there will be a pool of $300,000, and that will go toward some of the smaller councils to help with their compliance. The aim of providing this funding is to address the imbalance in education and training for the smallest of the state's 68 councils, half of which serve fewer than 10,000 people. The Coober Pedy council has about 3,000 members and the Orroroo Carrieton council has around 1,100 to 1,200 ratepayers, so it is very difficult for these councils to have the appropriate training for their staff.

The state government recognises the time, effort and expertise that goes into preparing annual budgets, business plans and other statutory requirements. There have been significant regulatory changes over the past few years in terms of how councils are required to manage their finances. Therefore, it makes sense for the state government to assist smaller regional councils and ensure that they comply with the rigorous standards that have been prescribed.

Furthermore, it is often the case that the more remote the council, the harder it is to find and attract experienced staff. Nevertheless, despite small rate bases and isolation, communities—rightly, I might add—expect their councils to provide quality and timely services. This program is aimed at providing assistance to councils that need it most.

Over the past six years, the state government and the Local Government Association have focused on improving financial and asset management practices by councils. Therefore, providing practical assistance to help them meet the new standards will result in improvement in the reliability and consistency of public information on council finances.

During the deliberations over the disaster fund, when quite a number of councils applied for relief, one of the provisions was for an engineer to go out and assess the damage done in these communities. We found that the better their asset management system, the easier it was to actually determine the appropriate costs, finances and relief for that particular council. So we believe it is very important to ensure that their asset and financial management systems are up to date.

The funding that we are going to provide will be used to provide practical assistance to small councils. For example, a staff member from the Office for State/Local Government Relations may spend time with council staff and provide assistance and training in financial procedures and practices. Alternatively, the funding may be used for council staff to travel to Adelaide and attend relevant training courses.

I am delighted that the LGA is joining with the state government to support small regional councils at this time. I expect the $300,000 program to make a real difference to how these councils run and meet the challenges of the future. Currently, the Office for State/Local Government Relations and the LGA are developing a detailed project plan for this funding. I will again advise the chamber on the details of this plan in the near future.