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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2009-09-22 Daily Xml
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Question Time

ROXBY DOWNS COUNCIL

The Hon. S.G. WADE (15:18): I seek leave to make a brief explanation before asking the Minister for State/Local Government Relations a question about the Roxby Downs Council.

Leave granted.

The Hon. S.G. WADE: According to the Australian Bureau of Statistics, the population of the Roxby Downs Council area was 4,453 in 2008. The Olympic Dam expansion development projects the population will increase to 7,000 in five years. There are 21 local government areas in South Australia which have populations that are less than that population; that is, around a third of South Australia's councils. These communities all have democratically elected councils to represent their interests. The BHP Billiton draft EIS states:

Roxby Downs is unique in South Australia in that the Council operated under an Administrator and without a democratically elected body. As the Town grows and the responsibility of the Council becomes greater this situation is likely to require review.

The Roxby Downs Council submission on the Olympic Dam expansion draft EIS stated:

[The council] notes aspirations for the potential change to an elected Council which under the Indenture is a matter for BHP Billiton and the State Government.

A poll taken by the Roxby Downs Sun revealed that 96 per cent of respondents said that Roxby Downs needs an elected council. Admittedly the sample was small. My questions are:

1. What triggers does the government use to assess the appropriateness of local government for a community?

2. When will the government engage the proponents of the Olympic Dam redevelopment, the Roxby Downs community and the Roxby Downs Council on appropriate local government arrangements for Roxby Downs going forward?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (15:20): Roxby Downs Council is a responsibility of the indenture minister, which is me as Minister for Mineral Resources Development. Ever since its establishment, Roxby Downs Council has been an appointed council. The reason for that, of course, reflects the unusual circumstances that exist in that town. In particular, the council is responsible for supplying electricity and water to the town. It has responsibilities beyond those which most other local government councils have.

Of course, in recognition of that it was included in the original indenture, which is now some 25 years old. The deficit that the Roxby Downs Council pays is jointly funded 50/50 between BHP Billiton and the state government through PIRSA. The reason for that is to ensure that the town is a liveable and a viable place. Of course, there is an acceptance by BHP that, if it wants its employees to live in the town, it is important that through the subsidy it supports the provision of basic utilities for the town.

Clearly, there has been some movement over time to change that arrangement. The current council arrangements are set out in the indenture. The state government in the past few months has established an advisory committee to ensure that there is greater accountability of that local government council, particularly in view of the fact that it is facing rapid expansion. Obviously, the town will grow dramatically as soon as the Olympic Dam expansion is announced.

In those circumstances it is the government's position that it is not appropriate to change the governance at this time—when there is to be quite rapid expansion—but, clearly, at some stage in the future when the expansion is underway the size of the town will be much more viable for local government services and it will be an issue that will need to be addressed in any case.

Obviously, the indenture is currently being negotiated between the government and BHP, and that would be a part of any arrangements. As a short-term measure, the government has put in place the Roxby Downs Advisory Reference Group, the membership of which comprises Bill Cossey (chairperson), Paul Case (Chief Executive of the Olympic Dam Task Force), Paul Heithersay (PIRSA Deputy Chief Executive) and Michael Kelledy from Wallmans Lawyers who has significant experience in local government. This body is currently providing a greater level of accountability to the affairs of the council. They are four very senior people, and I am sure many city councils would like such a group to be overseeing the affairs of their council.

I make the point that governance at a local level in Roxby Downs has been reviewed by the government. Clearly, the government's position is that, given significant expansion is about to take place and there are issues relating to a new camp, and the like, it would not be sensible or appropriate at this time to introduce local government on the verge of that expansion. However, at some stage in the future, I believe it is inevitable that there will be changes. The government will look at those at the appropriate time, once the expansion has been announced.

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