Handy Questions 7 - Tell me something interesting! With the Unusual Mike Rophone.
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COVERING BELLINGEN, URUNGA, DORRIGO, MYLESTOM, RALEIGH, REPTON
BELLINGEN, Wednesday, March 2, 2016 Established 1889 $1.60 at Newsagents
www.bellingencourier.com.au 6655-1007TA
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Dorrigo Urunga (02) 6657 2113
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EDITORIALBY ALICE BURNETSEEMINGLY it’s a small detail – theIndependent Pricing and RegulatoryTribunal’s (IPART) recommendation num-ber 10.
Yet the impact, if enacted by the StateGovernment, will mean councils, includingthe shire’s, will have their revenue slashedand planning autonomy scrapped.
In addition, residents may face burgeon-ing costs.
At the start of this year, IPART released adraft report under the guise of reducing bur-dens on local government. It seemed thiswas part of the ‘Fit For the Future’ (FFF)process – 49 recommendations put on thetable for feedback, under the banner of mak-ing councils more efficient and slashing red-tape.
The proposals cover a range of councilfunctions, however, dot point number 10relates to the operation of local water utili-ties, specifically that the Department ofPrimary Industries Water (DPI Water) under-take central water planning for Local WaterUtilities (LWUs). In short, this means theState will control local water, including regu-lating price, with a knock-on effect of seizingpower over local planning decisions.
If this change is made, the magnitude thiswill have on Bellingen Shire Council cannotbeen understated.
Caught unawares, like much of the FFFprocess, many local governments through-out the State scraped in a submission beforeclosing time. This included Bellingen ShireCouncil, which did not have time to convenea meeting with councillors, but discussedthe ramifications post-IPART response atthe monthly council meeting held lastWednesday.
Leading the discussion, deputy managerof operations Matt Fanning, stated the direimpacts this would have on council and saidlocal government needs to vigorously con-test IPART’s finding.
“Council should be under no illusion as tothe significance of IPART’s recommenda-tion,” he said.
“Approximately 37 per cent of the council’soverheads rely on the continuation of itswater and sewerage businesses and theirloss will have significant impact on council’sfinancial sustainability … their loss wouldsubstantially affect council’s critical mass.”
In regional NSW, councils provide watersupply and sewerage services to urban com-munities. IPART asserts, without providingevidence, that smaller councils typicallyhave less capacity to undertake waterresource planning.
“I contest IPART’s findings based on a lackof rigour to demonstrate that a problemexists; that the proposed solution can beimplemented; and furthermore the fulleffects this proposal would have on localgovernment,” Mr Fanning said.
“Council is best placed to understand therequirements and service level expectationsof the local community it serves … DPI Wateror a Regional Water Planning Authorityinsists that for reasons of future growth andregional planning that the Dorrigo SewerageTreatment Plant has to be 8000EP and notthe 3000EP deemed adequate by council …so they direct council to construct an infra-structure of this size and then direct councilto increase its developer charges and pricingstructures to cover the additional expendi-ture.”
The reality of separating planning fromdelivery is it removes council’s authority toundertake the planning for the provision ofwater and sewerage services and this willlimit, if not negate, council’s ability to deter-mine if, what, how and where developmentsproceed.
While, moving forward, disputes exist asto the form and shape the shire should take –should we keep the shire as a niche, naturalarea, or charge ahead with commercialdevelopment - it’s hard to see the value ofMacquarie St calling the shots.
Even those calling for amalgamation withneighbouring shires would surely pause tothink about the State Government’s long-arm reach into regional communities.
Another potential problem with IPART’sproposal is whether or not councils willretain the authority to take a dividend from
any surplus in their water and sewerageoperations. Mr Fanning certainly thinks itwill manifest in “the State Government seek-ing a dividend, further increasing the pricefor the consumer”.
The FFF process has given rise to ques-tions as to the efficacy of local government. Ithasn’t, however, explicitly said they are look-ing for reasons, and devising the tools, tosabotage them completely.
These changes, if enacted, will spell diretimes for smaller councils – and that’s if they
can sustain the blood-letting.It’s of note, while criticising local govern-
ments for their reliance on consultancyexpenditure, IPART’s draft report comes hot-on-the-heels of advice from consultancyfirm KPMG, paid $400,000 by the NSWGovernment, which allegedly extols thatcouncil mergers and restructures would paydividends to ratepayers.
Also of interest is that the full KMPG reporthas not been released for public scrutiny.
Continued page 2 ...
State looks to take water
COUNCIL’S WATERSHED MOMENT: Premier Mike Baird and Local Government Minister Paul Toole at the centre of
reforms that may see local water and sewerage under State Government control.
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