Regional Governance Framework There is a long history of regional collaboration in local government in South Australia, with many existing formal and informal structures in place for councils to work collaboratively and provide shared services. Formal bodies established under the Local Government Act’s regional subsidiary provisions currently undertake a broad range of functions and services. Examples include representation and advocacy, waste collection and disposal, collective purchasing and regulatory functions. Councils can also achieve collaboration without the need for a formal governance structure. There are numerous examples of Councils working together on a temporary or ongoing basis to plan for and progress important issues such as stormwater management, public health, land use planning, economic development and climate change As identified in the report, local government in South Australia faces a number of demographic, financial, political and environmental challenges in the years ahead. These challenges will inevitably place additional pressure on councils to expand their service offering and become more innovative and contemporary in their business practices. The Panel considered that strengthening regional collaboration and partnerships is an important and necessary response to present and future challenges. The local government sector has been giving serious consideration to the Panel’s recommendations and the LGA has provided funding and technical support to four pilot projects that are exploring opportunities for regional collaboration partnerships. These investigations have confirmed the appetite and potential for regional structures to undertake a broad range of functions. It is evident that a ‘one size fits all’ solution to regional governance will not satisfy the diverse objectives of different councils and regions. Rather, local government requires a broader suite of flexible governance options that can be tailored to the needs of different regions, councils and communities. This draft Regional Governance Framework proposes some key objectives to underpin more flexible and comprehensive regional collaboration arrangements and outlines the range of further policy and legislative considerations that are required if these objectives were to be met. . While this framework focusses on the regional subsidiary provisions under the Local Government Act as a primary tool for enabling regional collaboration, this is not to the exclusion of other models being pursued. In several regards the draft framework proposes a substantial departure from the existing structure and operation of regional models. Consultation is required with Councils, state government and other stakeholders to test these proposals and ensure that policy, legal and practical considerations are fully explored.
There are a range of governance models currently available, which all have merit in particular circumstances. Local government does not favour the consolidation of existing options into a single ‘one size fits all’ framework. To promote flexibility, it is important to maintain and enhance a of options and provide greater clarity around the particular circumstances that are best suited to each governance model. The regional subsidiary model in South Australia offers a ‘one size fits all’ approach and does not distinguish between representative and advocacy entities and truly commercial entities, which operate in competition with the private sector. Section 43(2) of the Act provides that a regional subsidiary which is established to perform a regulatory activity on behalf of its constituent councils cannot also perform a significant and related service activity. While there is a clear policy intent to this, it is considered by some to be a statutory hindrance in establishing a single vehicle to undertake both traditional service offerings of local government and at the same time performing a regulatory function. To clarify the extent of this issue, clear examples are required from the local government sector of any activities that have been (or would be) hindered by Section 43(2) of the Local Government Act. Regionalisation Objective Discussion Legislative and Practical Considerations for response Autonomy To achieve a genuine regional approach to planning and service delivery, it may be appropriate that a regional body operate autonomously and should be able to make decisions that are binding on constituent councils. This would be an appropriate measure to address concerns that the broader interests of the region often make way for local interests, potentially limiting the effectiveness and purpose of the regional body. Greater autonomy would also lead to more certainty about long-term resourcing requirements of a regional body. The principle of autonomy would challenge the current establishment of regional subsidiaries. Despite having operational autonomy, currently the constituent councils are ultimately responsible for the liabilities of the regional subsidiary and are able to direct the regional subsidiary. As a challenging concept, the views of the local government sector are being sought about whether regional bodies should be able to be created that can operate with more autonomy and make decisions that bind constituent councils. If the local government sector more broadly supports the principle of autonomy, legislative change would be required. The level of autonomy provided to a regional body may be linked to its functions.