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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 TELFER (Flinders) (5 July 2023). (Estimates Committee B)

The Hon. G.G. BROCK (Stuart—Minister for Local Government, Minister for Regional Roads, Minister for Veterans Affairs): I have been advised:

I have received correspondence from three councils, two regional local government associations and the Local Government Association (LGA) regarding the costs of the Local Government Advice Scheme (the scheme).

ESCOSA consulted with the local government sector on its draft Framework and Approach for the scheme, including its costs.

ESCOSA has determined that the final cost of the scheme per advice per council is $40,000 (or $10,000 per annum). I am advised that ESCOSA has written to the first 15 councils that have received advice, to provide additional information through an explanation and breakdown of the costs incurred.

ESCOSA is an independent body that has been tasked by the South Australian parliament to provide thorough and objective advice to all councils on a matter that is fundamental to their good operation – their financial sustainability. To my mind, it is difficult for a council to argue that this advice is of limited value, particularly when risks are identified that could have significant impacts on future ratepayers.

Additionally, there is significant value in independent advice that a council is financially sustainable and making responsible decisions regarding its revenue and expenditure. This advice should increase ratepayer trust and confidence in their council's decisions, which is particularly important at a time when many councils are increasing rates by between 8-10 per cent.

I strongly encourage any council, or any elected member, that has questions about the scheme, including its costs, to contact ESCOSA directly to discuss them. ESCOSA has expressed to me its desire to work with councils to ensure that the advice provided is well-informed by council information and is constructive and useful.

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