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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2010-07-01 Daily Xml
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BURNSIDE COUNCIL

The Hon. J.A. DARLEY (15:02): My question is to the Minister for State/Local Government Relations. On 22 June, the minister provided the council with information pertaining to the investigation of the Burnside council. Included in this information was the fact that the cost of the investigation has now escalated to $800,000, with an estimated additional $150,000 upon the conclusion of the investigation. Does the minister intended to recoup all or part of these costs for the investigation from the Burnside council?

The Hon. G.E. GAGO (Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister for the City of Adelaide) (15:02): I thank the honourable member for his most important question. Under the provisions of the Local Government Act 1999, I am advised that there is no capacity for recovery of costs incurred by the current investigation from the Burnside council.

The investigation of the Burnside council is being undertaken at my direction as minister. Under the Local Government Act, an investigation into a council may be instituted if the minister has reason to believe that there has been a contravention, or a failure, by the council to comply with a provision of the Local Government Act, or other acts; or failure to discharge a responsibility; or an irregularity in the conduct of the affairs of the council relating to matters arising from the Local Government Act.

As I have said in this place on many occasions, the fact that the investigation is instigated does not assume, obviously, an adverse finding. The investigation into the Burnside council is seeking to uncover the facts surrounding a particular set of circumstances, and that is the just and proper approach.

The act places a responsibility for commissioning and acting on investigations appropriately in the hands of the minister of the day in order to protect public interest. It is in the public interest to investigate the facts in a thorough way so that the community can be assured that a public institution, such as a council—particularly an institution that has powers to raise revenue through rates—is functioning properly or, if not, that action can be taken to ensure there is a remedy for that particular situation.

Although that is the advice that I have received to date, obviously I will continue to explore any or all options that may become available to achieve cost recovery, or at least part cost recovery, if that is possible. I obviously do not exclude the possibility of continuing to explore any and all opportunities that might avail themselves, but that is the advice that I have received to date.

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