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House of Assembly - Fifty-First Parliament, Third Session (51-3)
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OUTBACK COMMUNITIES (ADMINISTRATION AND MANAGEMENT) BILL

Second Reading

Second reading.

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Correctional Services, Minister for Gambling, Minister for Youth, Minister for Volunteers, Minister Assisting the Minister for Multicultural Affairs) (16:40): I move:

That this bill be now read a second time.

The Outback Communities (Administration and Management) Bill 2009 sets a new framework for governance in the unincorporated areas of South Australia; that is, those areas, other than any areas excluded by regulation, not falling under the jurisdiction of a local council (as provided in the Local Government Act 1999). The new legislation will replace the Outback Areas Community Development Trust Act 1978, providing for an incorporated body with enhanced responsibilities for overseeing the strategic management of and business planning for the outback region.

Those responsibilities will be underpinned and enabled by new powers to raise revenue to support the maintenance of existing infrastructure and the provision of services to the community; powers to take action to address pollution or nuisance through issuing orders provided for under the Local Government Act 1999; and it will provide for future powers to be granted to the new body by regulation, where appropriate, such as are deemed necessary to give the new body the necessary authority to deliver outcomes for the region.

Furthermore, to clearly denote the strategic and administrative link with the state government, and to further herald a break from past arrangements, the new body will be renamed the Outback Communities Authority. I seek leave to have the remainder of the second reading explanation inserted in Hansard without my reading it.

Leave granted.

Background

Context

Before providing further details on the Bill itself, I will provide the House with some of the context within which the draft legislation has been developed. One of the most pertinent facts to consider in this respect is that, while the area of this Bill's jurisdiction contains only about a third of one percent of the state's population, it accounts for 68% of the state's geographic area. This disproportionate relationship between population and geography makes governance arrangements such as those under the Local Government Act 1999 impractical; the vast distances between and the diverse nature of localities; the small populations; the practical difficulties in holding elections; and the inappropriateness of a 'one size fits all' arrangement all conspire against adopting the state's more broadly established local governance model. The need for appropriate governance arrangements in some form is not debatable; rather the question is what kind of arrangement is the right fit?

The need for special governance arrangements for the outback was originally recognised over thirty years ago by the Dunstan government, which brought the Outback Areas Community Development Trust Act 1978 into law. That Bill was introduced with a view to facilitating development and infrastructure projects, and to offer financial support to community organisations. The Outback Areas Community Development Trust ('The Trust') has, since the Act came into law, gone on to play a vital role in community development in the outback. In those intervening years, however, the problems faced by outback communities have gradually outgrown the capacities of the Trust and the legislative arrangements establishing it.

Current arrangements

Under the current arrangements, local administration is primarily undertaken by volunteer progress associations in individual outback communities, with the assistance and advice of the Trust. The progress associations play a vital role in deciding local priorities, managing local affairs, and fostering social cohesion and cultural development, and they also provide some funding for local projects. In recent years, however, the organisations have taken on responsibility for the management and maintenance of essential services and infrastructure such as aerodromes and water supplies. The reliance on them to undertake these roles and responsibilities is becoming increasingly burdensome as factors such as risk management and insurance compliance gain importance in parallel with the increasing number of responsibilities. Volunteer burnout, the lack of capacity or capability to perform certain functions within some communities, and an over-reliance on 'one-off' grant funding adds to the problem.

Furthermore, increased pressure is being placed on the Trust itself to deliver local government-type services and basic local infrastructure to meet their communities' needs, along with providing other services on behalf of, and in collaboration with, the State Government. This has been exacerbated by increased mining and tourism activity in outback areas and the tremendous pressure they bring to bear on existing infrastructure in some communities, such as airstrips, waste, accommodation and water supplies. While we welcome the benefits these activities bring to the state's economy, we must acknowledge the burdens they can place on some of our most remote and vulnerable communities.

At the same time as these changes have been taking place, civil society's understanding of the importance of a strategic approach to business planning, budgeting and community engagement has made significant advances. Communities at all levels have come to expect a more strategic approach to governance, and rightly so. These changes too, then, have influenced the government's thinking, in arriving at the proposals being laid before the House today.

As these new economic and social challenges have arisen and as the argument for more strategic and considered governance has gained wider currency, so has the case for a reappraisal of governance arrangements for outback areas.

Consultation to Inform Government's Response

In response to this, the then Minister for State/Local Government Relations, the Hon Member for Wright—whose contribution to the preparation of this legislation I wish to acknowledge here—initiated, in May 2007, a review of the operations and governance arrangements of the Trust. As part of that review, feedback on possible future governance options was sought from residents, community organisations, agencies and other key stakeholders. The community itself was widely engaged, and all residents were sent an issues paper, a questionnaire and an open invitation to participate in the review, including through community workshops in Yunta, Leigh Creek, Andamooka, Coober Pedy and Penong.

Some of the key themes emerging from the engagement process and reflected in the final report 'The Case for Change', completed in October 2007, were as follows:

being an advocate for the outback was seen as a legitimate role for the Trust, particularly in an advisory role to State agencies;

support was given for more systematic consultation processes;

there was support for the Trust taking control of wider infrastructure issues, such as aerodromes;

many felt the Trust should support and assist community associations in their cultural and social development role;

it was felt that more streamlined strategic planning, budgeting and business planning processes would lend greater transparency and accountability to the Trust; and

there was broad recognition of the need for some form of local rating to deliver the changes, though with disagreement as to whether any scheme should be community-based or outback-wide.

Drawing on this and other feedback, the government has decided to introduce the following provisions in the draft legislation:

Summary of Legislative Proposals

The new body

The Bill seeks to establish a newly named body—the Outback Communities Authority ('the Authority'). While this will be the same body corporate in law as the Outback Areas Community Development Trust, albeit with significantly enhanced powers, the Government firmly believes that a change of name is necessary to signal a break from the past, and reinforce the close links between the Authority and the State Government, which will be important as the Authority seeks to enhance its influence within government by articulating the views, interests and aspirations of outback communities.

Furthermore, while the earlier legislation allows for membership of between three and five board members, this Bill provides for membership of precisely seven members. This will allow for a greater combined breadth of expertise and experience.

In addition, the Outback Communities Authority may establish committees to inform its work, membership of which need not be limited to appointed members of the Authority, but which may include other community representatives or outside experts as appropriate. Along similar lines, the Authority, or its presiding member may, with the Minister's approval, delegate a function or power of this Bill or any other Act. These measures will expand the pool of available resources to provide input into and participate in the Authority's deliberations, and give added flexibility and breadth.

The Bill allows for the area of the Authority to be finetuned by the regulations. It is contemplated that this mechanism will be used to exclude relevant Aboriginal lands and certain islands from the area.

Functions and Objectives

The Outback Communities Authority's functions and objectives will be largely similar to that of its predecessor, the Trust. However, changes will be made to put the new body on a more strategic footing.

The 1978 Act provided for the Trust to carry out development projects and provide local services; to support community organisations, including through grants and loans; to carry out or promote improvements to communications; and to exercise any powers conferred upon it by that Act, including any specified provisions of the Local Government Act 1999 conferred upon the Trust, by regulation, by the Governor.

These provisions are broadly reflected in this Bill being laid before the House today, but the new Bill goes further in that it requires the new body to:

give more long-term consideration to asset management and replacement;

consider national and state objectives and strategies to inform its work;

work collaboratively with governments at all levels;

ensure it has robust processes in place for engaging outback communities and informing external decision making processes with implications for those communities; and

provide an efficient service, remain accountable and manage its resources effectively.

While the Trust has a history of conducting itself with these sorts of aspirations in mind (insofar as it has been equipped to do so), the inclusion of such provisions on the face of this Bill will provide added impetus to the drive to provide a more strategic and focussed service. Furthermore its successor, the Authority, will be supported in its delivery of this role by Public Service employees assigned to it by the appropriate government agency, currently the Department of Planning and Local Government.

Management and Budget Planning

The Outback Communities Authority will be required and enabled to engage more systematically in strategic, management and budgetary planning processes, in the following ways:

It must, in consultation with outback communities, prepare strategic management plans for Ministerial approval on a five-yearly basis. These plans are to include details of the Authority's:

objectives;

intended activities;

proposed collaborative work; and

long-term financial and asset management plans.

It must, in consultation with outback communities, prepare a business plan and budget for Ministerial approval on an annual basis. These are to include details of the Authority's:

objectives;

intended activities;

proposed expenditure and revenue requirements; and,

rates payable for the year and the likely impact of this on communities.

It may enter into agreements, to be known as Community Affairs Resourcing and Management Agreements, with individual community organisations, to establish ground rules in regard to financial support, service provision, insurance schemes, rates expenditure or governance arrangements. This measure is designed to ensure realistic expectations on behalf of both parties, to smooth co-operation and mutual understanding, and to provide a greater degree of certainty around funding and administrative arrangements, so as to assist community organisations in conducting long-term planning.

Community Consultation

The Outback Communities Authority must prepare and adopt a public consultation policy for use in connection with its key planning and budgetary processes and arrangements, including but not limited to those I have just cited. Through this policy, it must ensure that stakeholders are given reasonable opportunity to make submissions on all matters subject to consultation.

Revenue-raising powers

It is proposed to introduce two mechanisms for the Authority to raise revenue to contribute towards the funding of facilities and infrastructure in outback areas:

an 'asset sustainability levy', and;

a 'community contribution scheme'.

The introduction of these arrangements will be balanced with provisions in the Bill requiring the Authority's accountability, transparency and attention to community input, and the application of both of these mechanisms will be subject to additional public consultation requirements.

Asset Sustainability Levy

The rationale for applying this levy is based on the idea of a shared community responsibility to contribute to the maintenance of existing public use facilities and infrastructure in the outback. It would apply to all properties (including pastoral leases) located within the Outback Communities Authority area, except for those uses of land currently exempt from council rates under the Local Government Act 1999, and be applied as a fixed charge (similar to a local government general rate).

It is expected that funds collected from the levy would only partially cover the total cost of providing the prescribed services. The remaining costs would still be sourced from Commonwealth local government grant monies, allocations that are sought by the Outback Communities Authority through the normal budget allocation process, and other specific Commonwealth and State grants.

Community Contribution Scheme

It is also proposed to provide the Outback Communities Authority with the capacity to declare a localised user pays system ('community contribution scheme') to enable it to raise revenue for municipal-type services and activities.

This will be done at the individual community level, so revenue will only be expended in the community in which it is raised. These schemes will be developed in consultation with individual communities but, unlike a general rates system, will be applied only with the specific agreement of the individual community on which it is proposed to be levied. A community affairs resourcing and management agreement authorising community contributions for a specific purpose will only be developed at the request of the community concerned.

The Government believes that the introduction of both an outback-wide and a community specific levy will reflect the fact that certain projects will in themselves be community-specific, whereas others, such as UHF transmitters, will benefit the broader outback community.

Other powers under the Local Government Act 1999

It is proposed that the Outback Communities Authority be given similar powers to maintain local amenity and deal with nuisances, as provided in the Local Government Act 1999 (Chapter 12), whereby councils may issue an order to a land owner, occupier or other person to stop or prevent them from carrying out an activity on private land. These relate to the unsightly condition of land, hazards on lands adjoining a public place, animals that may cause a nuisance or hazard, and the use of a caravan or vehicle as a place of habitation.

It is also proposed that the Authority be given appropriate powers, similar to those of a council, to deal with illegal dumping on public places and roads.

Annual Reports

As with the current Trust, the Outback Communities Authority must prepare an annual report for the Minister, giving details of its activities together with an audited statement of income and expenditure.

Under the new arrangements, however, the report must also include an assessment of those activities against its business plan aspirations for the previous financial year.

Transitional Arrangements

The Government recognises that these proposals, if adopted, would signal a generational change in governance for the outback areas of this State. While the changes represented will, I believe, be to the significant benefit of those living in the jurisdiction covered by the changes, clearly there will be some who have worries about adapting to the new arrangements. The Government is fully conscious of and sympathetic to such concerns, and it is expected that there will be a gradual introduction of the new rates, the amount of which must be approved by the Minister. The fact that the legislation will require the Outback Communities Authority to consult extensively on the strategic directions driving the use of its powers, on detailed business planning, including any planned introduction of an Asset Sustainability Levy or Community Contribution, should serve to further allay any such concerns, and ensure that the community is fully informed of, and provided with ample opportunity to contribute to, the manner and direction of its governance.

I commend this Bill to the House.

Explanation of Clauses

Part 1—Preliminary

1—Short title

This clause is formal. It sets out the short title of the Act, namely, the Outback Communities (Administration and Management) Act 2009.

2—Commencement

This clause is formal. It provides that the Act will come into operation on a day to be fixed by proclamation.

3—Interpretation

This clause sets out the meaning of terms used in the Act. One of the significant terms included in this clause is outback which is defined to mean 'the area of the State outside council areas under the Local Government Act 1999, excluding any area declared by regulation not to be part of the outback'.

4—Objects of Act

This clause provides that the objects of the Act are:

to provide for efficient and accountable administration and management of outback communities;

to promote participation of outback communities in their administration and management;

to raise revenue for public services and facilities in the outback.

Part 2—Outback Communities Authority

Division 1—Establishment

5—Establishment

This clause provides for the establishment of the Outback Communities Authority. The Authority is the same body corporate as the former Outback Areas Community Development Trust. The clause sets out the Authority's powers as the incorporated body, that the Authority is an instrumentality of the Crown, that it holds its property on behalf of the Crown, and that it is subject to the control and direction of the Minister.

6—Functions and objectives

Clause 6 sets out the functions of the Authority, which are:

to manage the provision of public services and facilities to outback communities;

to promote improvements in the provision of public services and facilities to outback communities;

to articulate the views, interests and aspirations of outback communities.

The clause further sets out the ways in which the Authority will perform its functions.

Division 2—Administration

7—Membership

This clause sets out the requirements for membership of the Authority which are, broadly:

there are to be 7 members appointed by the Governor;

at least 1 member is to be a man and at least 1 a woman;

the Governor appoints the presiding member;

the Governor may appoint deputy members.

8—Conditions of membership

Under this clause, members of the Authority are appointed for maximum terms of 3 years. The Governor may remove a member from office for breach of, or non-compliance with, a condition of appointment, for misconduct or for failure to carry out official duties satisfactorily. An office of a member of the Authority becomes vacant if the member dies, completes a term of office and is not reappointed, resigns, is disqualified under the Corporations Act 2001 of the Commonwealth or is removed under subclause (2).

9—Application of Public Sector Management Act

To understand this clause, one must bear in mind that the Authority is a public sector agency under the Public Sector Management Act 1995. As such, the provisions under Part 2 Division 3 of that Act apply to members of the Authority. One of these provisions (section 6H of that Act) requires members who have a conflict of interest in a matter decided or under consideration by the agency, to take certain distancing measures in order to neutralise the effect of their interest. The clause provides that if a member has an interest in a matter that is shared in common with members of an outback community or a substantial section of such members, then that interest alone does not constitute a conflict of interest.

10—Proceedings

This clause sets out the proceedings of the Authority, for example, that a quorum of the Authority consists of 4 members. The problem of vast distances between members is addressed in this clause, for example, by subclause (5) which enables meetings of the Authority to be held by telephone or other electronic means and, subclause (6), which allows proposed resolutions to become valid decisions by concurrence by members in written (including electronic) form.

Further provisions in this clause are:

notice of each proposed resolution for the submission of a strategic management plan, annual business plan or budget (or a variation of those plans or budget) to the Minister must be given to members, together with a copy of the proposed plan, budget or variation, at least 21 days before a vote is to be taken on the resolution;

a meeting of the Authority is to be open to the public except where an equivalent council meeting could be closed under the Local Government Act 1999;

the Authority must keep minutes of its open meetings and make them available for inspection;

the Authority may determine any procedures other than those provided for in the Act.

11—Committees

This clause enables the Authority to establish committees of persons other than members of the Authority. Such committees assist the Authority in the performance of its functions. They may determine their own procedures. A member of such a committee is equivalent to an advisory body member under the Public Sector Management Act 1995. This means that the committee members are subject to the honesty and accountability provisions under Part 2 Division 4 of that Act.

12—Staff

This clause provides that the Authority's staff are Public Service employees assigned to assist the Authority.

13—Delegation

This clause enables the Authority or the presiding member of the Authority to delegate a function or power under this Act to a particular person or committee or the person for the time being performing particular duties or holding or acting in a particular position. The clause sets out limitations on such delegations and also enables delegations to be further delegated in certain cases.

Division 3—Management practices

14—Public consultation policy

This clause requires the Authority to prepare and adopt a public consultation policy. Such a policy must be applied by the Authority in circumstances including the following:

when preparing its strategic management plan, annual business plan and budget, community affairs resourcing and management agreements;

when taking action under an applied provision of the Local Government Act 1999 that requires the following of a public consultation policy;

when making decisions of a kind prescribed by the regulations.

The clause sets out what the scope of a public consultation policy should be and the consultation required where substantial variations or substitutions are proposed to such a policy.

15—Strategic management plan

This clause requires the Authority to prepare a 5-yearly strategic management plan. The plan must be prepared in accordance with the public consultation policy and must include:

a statement of the Authority's objectives for the provision of public services and facilities to outback communities for the 5 year period;

a clear indication of the extent to which the Authority has given consideration to State and national objectives and strategies relevant to outback communities;

an assessment of—

the extent or levels of public services and facilities that will be required to be provided to achieve its objectives; and

the extent to which infrastructure for public services and facilities will need to be maintained, replaced or developed to achieve its objectives;

a statement of—

the principal activities that the Authority intends to undertake to achieve its objectives; and

the means by which its activities are to be carried out, including the extent to which it is intended that public services and facilities will be provided to outback communities by community organisations;

a statement of the extent to which the Authority intends to collaborate with local, State and national governments in the planning and delivery of public services and facilities to outback communities;

a long-term financial plan;

a long-term plan for the maintenance, replacement and development of infrastructure for public services and facilities for outback communities;

any other matter prescribed by regulation.

The clause also makes provision for variations to the plan including variations resulting from an annual business plan and budget.

16—Annual business plan and budget

This clause requires the Authority to prepare an annual business plan and budget. The plan and budget must be prepared in accordance with the public consultation policy and must include:

a statement of the Authority's objectives for the provision of public services and facilities to outback communities for the financial year;

a statement of—

the activities that the Authority intends to undertake to achieve its objectives; and

the means by which its activities are to be carried out, including the extent to which it is intended that public services and facilities will be provided to outback communities by community organisations;

an assessment of the financial requirements of the Authority for the financial year and a summary of its proposed operating expenditure, capital expenditure and sources of revenue having regard to those requirements;

a statement of the rates payable for the financial year;

an assessment of the impact of the rates on outback communities;

any other matter required by the Minister or prescribed by regulation.

The Authority is prohibited from making any expenditure not authorised by an approved budget except with the consent of the Minister. The clause also makes provision for variations to the plan and budget.

17—Community affairs resourcing and management agreements

This clause enables the Authority to enter into a memorandum of understanding called a community affairs resourcing and management agreement with an outback community. Such an agreement may relate to:

the financial and other support to be provided to the outback community by the Authority;

the provision of public services and facilities by community organisations and the governance of those organisations;

the participation of community organisations in an insurance scheme arranged by the Authority;

procedures to be followed by community organisations claiming reimbursements from the Authority;

authorisation of community contributions for a specified purpose;

any other matter related to the management and administration of the outback community.

18—Annual report

This clause requires the Authority to present, on or before 30 September in each year, an annual report to the Minister on the Authority's operations during the previous financial year. The annual report must be tabled in Parliament.

19—Publication of documents

This clause requires the Authority to make available, for public inspection free of charge, and for public purchase, copies of:

the public consultation policy;

the strategic management plan;

the annual business plan and budget;

the latest annual report;

all current community affairs resourcing and management agreements.

Part 3—Application of certain Acts

Division 1—Preliminary

20—Interpretation

This clause clarifies that if provisions of another Act are applied by this Part, the definitions in that Act of terms used in those provisions are also applied.

Division 2—Local Government Act

21—Rates on land—asset sustainability levies and community contributions

This clause enables the Authority to impose rates on land in the outback. 2 different types of rates may be imposed, namely 'asset sustainability levies' and 'community contributions'.

The asset sustainability levy is to be imposed on land in the outback in the same way that a council imposes general rates on land except that it is to be based on a fixed charge approved by the Minister. Revenue raised by this levy will be used to maintain public services and facilities in the outback.

The community contribution is to be imposed on land in a particular part of the outback (after a community affairs resourcing and management agreement has been entered into by the relevant outback community under section 17) in the same way that a council imposes separate rates on land except that, like the asset sustainability levy, it will be based on a fixed charge approved by the Minister. Revenue raised by this contribution will be used for the purposes of the particular community.

The clause applies Chapter 10 Part 1 of the Local Government Act 1999 which contains substantial detail relating to the calculation and imposition of rates. The regulations will set out how those applied provisions will be modified to suit the purposes of the asset sustainability levy and the community contribution in the context of the outback.

22—Anti-pollution measures

This clause applies Chapter 11 Part 3 of the Local Government Act 1999 in relation to the Authority and the outback as if the Authority were a council and the outback were the area of the council. This means that the Authority will have powers in relation to:

the deposit of rubbish on public roads or in public places;

the abandonment of vehicles or farm implements on public roads or in public places;

the removal of vehicles left on public roads or in public places for more than 24 hours.

23—Anti-nuisance measures

This clause applies Chapter 12 Part 2 of the Local Government Act 1999 in relation to the Authority and the outback as if the Authority were a council and the outback were the area of the council. This means that the Authority will have the power to make orders in relation to:

unsightly conditions of land;

hazards on land adjoining a public place;

animals causing a nuisance or hazard;

the use of a caravan or vehicle for habitation.

24—Authorised persons

This clause enables the Authority to appoint authorised persons in the same way that a council may appoint authorised persons. Authorised persons so appointed may administer and enforce this Act and any other Act that applies in relation to the Authority or the outback as if the Authority were a council and the outback were the area of the council.

25—Miscellaneous powers

This clause, by applying certain provisions of the Local Government Act 1999, gives the Authority the same powers and rights as a council in the following areas:

the power to enter and occupy land in connection with a function or responsibility of the Authority;

the power to carry out surveys, inspections and work in connection with a function or responsibility of the Authority;

the vesting in the Authority of property in rubbish collected by the Authority;

the power to act in an emergency (eg flooding or other emergency threatening life or property).

Division 3—Other Acts

26—Regulations may apply other Acts

This clause enables regulations to be made that apply, to the Authority or the outback, provisions of other Acts that apply in relation to councils or council areas as if the Authority were a council and the outback its council area. Such regulations may be modified in order to operate in the context of the outback and the Authority. The clause requires that such regulations not be made unless certain consultation is undertaken.

Part 4—Miscellaneous

27—Regulations

This clause sets out the Act's general regulation making powers including a power to impose fines not exceeding $5,000 for offences against the regulations.

Schedule 1—Repeal and transitional provisions

Part 1—Repeal

1—Repeal of Outback Areas Community Development Trust Act 1978

This clause repeals the Outback Areas Community Development Trust Act 1978.

Part 2—Transitional provisions

2—First members of Authority

This clause provides that the members of the Outback Areas Community Development Trust vacate their offices on commencement of the clause so that fresh appointments may be made to the Authority.

3—First annual business plans and budget of Authority

This clause provides that if it is impossible, given the date on which the measure commences, for the first annual business plan and budget to be submitted by 31 May for the next financial year, the plan and budget may be submitted as soon as practicable after that commencement.

4—Budget

This clause ensures that the Authority can continue to work under the budget last approved under the Outback Areas Community Development Trust Act 1978.

5—Regulations

This clause provides that the regulations may make other provisions of a savings or transitional nature consequent on the enactment of the measure.

Debate adjourned on motion of Mr Pederick.

Ms BREUER: Mr Speaker, I draw your attention to the state of the house.

A quorum having been formed:

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