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House of Assembly - Fifty-Fifth Parliament, First Session (55-1)
2023-08-30 Daily Xml
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Essential Services Commission of South Australia

In reply to Mr COWDREY (Colton) (29 June 2023). (Estimates Committee B)

The Hon. S.C. MULLIGHAN (Lee—Treasurer): I have been advised the following:

1. Under the Local Government Act 1999, councils are required to receive advice from the Essential Services Commission of South Australia (ESCOSA) and publish this advice and any response to it in their draft and annual business plans. However, there is no legislative requirement for councils to implement any advice or recommendation provided by ESCOSA.

The intent of the scheme is not to direct council decisions, but rather to provide independent and transparent advice on each council's key financial planning requirements, so that both councils and their ratepayers can be assured that councils are managing these vital matters appropriately.

The scheme does not mandate the adoption of the advice. However, it does require that councils publish the advice, and any response that they have to the advice, in their draft and final annual business plans. Given the nature of the scheme, it would be good practice for elected members to have formal and independent regard to any advice received.

2. ESCOSA's advice provides a forward-looking assessment as to the appropriateness of a council's long-term financial plans, infrastructure and asset management plans and revenue sources as outlined in the council's funding plan. The scheme allows elected members, the local community and council officers to discuss and debate issues raised—both risks and areas of good practice—in annual decision-making processes, thereby improving transparency in those processes and providing opportunities for future efficiencies.

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