Local Goverment Narrative

Better Local Government Narrative

Strong Local Governments deliver better outcomes for local communities

Better Local Government


Across Australia, there is a growing recognition of the need for better infrastructure investment, and of the pivotal role that infrastructure plays in the nation’s economic fortunes. Strong Local Governments play a vital role in delivering and maintaining a large portion of this infrastructure. However, there is a wide consensus that Australia currently has a massive infrastructure backlog.

A strong funding commitment will be needed if our infrastructure is to be brought up to standard. However, investment alone will not resolve the problem. We need to build a skilled technical workforce in Local Government to manage our infrastructure or much of this investment will be wasted.

Professionals AustraliaSTREET ADDRESS 163 Eastern Rd, South Melbourne Victoria 3205, Australia

POSTAL ADDRESS GPO Box 1272, Melbourne Victoria 3001, Australia

TELEPHONE 1300 273 762

EMAIL [email protected]

WEB www.professionalsaustralia.org.au


Dear Local Government Professional,

Australia’s economic prosperity relies on strong and effective government at all levels. Local Government is a key piece of this puzzle, with responsibility for local infrastructure and community services. However, Infrastructure Australia recently highlighted the need for greater infrastructure investment, pointing to growing congestion and a rising renewal gap at all levels of Government. To resolve this problem, we need to ensure that Local Governments are strengthened, both through better funding, and intelligent workforce development.Many Local Governments across Australia are at breaking point. They face a constant pressure to deliver more services and better infrastructure, while minimising rates. Initiatives to cap council rates in some states have places additional strain of Local Councils, as they seek to provide the infrastructure, maintenance and services that their communities need, without the necessary funding.

Quality community infrastructure is integral to the ongoing prosperity of the nation and local communities. However at present, Local Governments face a growing backlog of projects, with inadequate funding to resolve the issue. While infrastructure investment occurs at State and Federal level, the responsibility to maintain and improve most existing roads lies with Local Government. If infrastructure and services are to be brought up to standard, we need State and Federal Governments to support greater funding for Local Government, both through flexible rate systems, and through direct grants and funding for important projects.

Alongside additional funding, we must ensure that we are getting the best value for our money. To do this we need the right people in place to manage our investment. A major aspect of ensuring effective and efficient investment is the strengthening of technical expertise within Local Governments. Infrastructure projects are by nature highly complex, and require the involvement of highly-trained engineers and other technical professionals from planning through to delivery, to avoid cost blowouts and waste.

We need to increase the level of technical skill in local councils to scope, design, deliver and maintain community assets in a cost-effective manner. We also need to ensure that skilled technical professionals are involved in the decision making process at each council, to provide expert guidance and informed management. The introduction of a Chief Engineer at each councils will go a long way to delivering better Local Government, providing a strong foundation of knowledge and expertise where they are needed most.

By strengthening Local Government capacity as an informed purchaser and reducing the reliance on outsourcing, Local Governments will be in the best position to deliver high-quality, high-value outcomes for their local communities. This will not be achieved without rebuilding respect, recognition and reward for technical professionals working in Local Government.The time to act is now if we are to effectively strengthen our Local Governments. To do this, we need to make sure we have a guiding plan for the sector, with adequate funding and the necessary technical expertise to deliver and manage vital community infrastructure and services.

With that, I extend an invitation to all Local Government professionals to be a part of this initiative, and help shape our plan from the ground up – to make the voice of your sector stronger.

Please visit: Professionalsaustralia.org.au/_________ and register your interest. Otherwise, contact [email protected].

Thank you

Chris Walton, CEO Professionals Australia

An open letter

“Quality community infrastructure is integral to the ongoing prosperity of the nation and local communities.

However at present, Local Governments face a growing backlog of projects, with inadequate funding to resolve the issue.”

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Councils across Australia are under mounting pressure. Limited revenue, a lack of grant funding and a declining level of technical expertise are impacting councils’ ability to

maintain infrastructure quality and service levels. Without additional funding and better workforce development, the effectiveness and efficiency of Local Government is likely to

decline.

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Local Government at breaking point

The consequences

If Australia is to maintain its quality infrastructure – and ultimately its quality of life – the manner in which Local Governments manage their infrastructure and services will need to change drastically. Local Governments will need to focus on improving their capacity to deliver infrastructure projects by enhancing their engineering stocks and building the skills base within councils.

Local Governments will also require adequate funding in order to ensure that the rising costs of infrastructure and service delivery can be met. A long-term focus will be particularly important, as councils will need to weigh the short-term cost of investing in infrastructure and skilled staff against the long-term cost of underinvestment and uninformed investment. Professionals Australia is calling for a stronger Local Government, where engineering and technical professionals are properly utilised to deliver better, more effective government.

Planning:• councils are being encouraged to cut cost rather than improve quality;• current planning prioritises cost over quality;• technical capacity of councils is declining;• waste and cost blowouts are increasing due to lack of workforce planning;• no strategy exists to reduce the infrastructure backlog; and• no strategy in place to improve attraction, development and rejection of skilled technical professionals.

Funding:• lack of maintenance and investment in new infrastructure• aging community infrastructure is at risk of failure;• increased congestion and high economic cost;• higher-cost replacements required due to inadequate maintenance;• low budgets compromise the effectiveness of new projects; and• lack of funding for skilled staff is leading to cost blowouts in larger projects, wasting ratepayer funds and decreasing value for money.

Workforce: • lack of funding is causing a decline in technical skill within Local Government;• increased reliance on outsourcing is pushing up costs;• no workforce development framework exists to encourage the attraction and retention of quality technical staff;• higher maintenance costs per project due to a depletion of in-house skills;• lack of in-house skill compromises ability of councils to provide effective project management and oversight of contractors; and• the exodus of skilled staff will threaten the ability of councils to plan for and respond to future challenges.

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If councils across Australia are going to be prepared to deliver the asset maintenance programs that communities will need over the coming years, we need to fix the sector now. By improving the planning and coordination between levels of government, we can strengthen our local councils to tackle the challenges of the future. Australia needs a thorough, well-designed plan that prioritises strong, well-funded government over low-cost government. Improving the in-house technical capacity of Local Government – particularly by introducing Chief Engineers – councils would be in a better position to direct funds where they are most needed, and would provide a strong case for additional funding across the industry. A plan to attract, retain and fully utilise a skilled workforce of technical professionals would also provide a massive boost for the industry, decreasing waste and delivering high-value outcomes for communities.

PlanningProfessionals in the Local Government are telling us that there is a planning problem throughout our councils. The lack of planning and coordination between levels of government, and within councils, is leading to a decline in skill and waste of ratepayer funds. To fix our councils, we must start with a plan that prioritises strong and effective government. Proper planning requires decision makers to determine what sort of Local Government we need, and ensure that the funding, systems and workforce are available to deliver the necessary change.

Effective planning also requires change within Local Government, bringing a higher level of technical expertise to the decision making process through the introduction of a Chief Engineer. A formal plan for Local Government to drive new investment, improve maintenance levels, address waste and strengthen the workforce would go a long way to delivering the high-quality Local Government the nation needs.

FundingLocal Government currently lacks the required funding to provide the infrastructure investment, maintenance and services that communities need. While the degree of underfunding differs between councils – regional councils face a larger gap – there is little doubt that Australia faces a growing infrastructure backlog.

Infrastructure Australia has found that congestion on Australia’s roads cost the economy $13.7 billion in 2011, and this figure is forecast to swell to $53.3 billion in 2031 unless swift action is taken. Local Government is responsible for a large portion of this infrastructure.

To ensure that our councils are capable of addressing future challenges, we need to provide better funding for Local Government. However, this improvement will require coordination between State and Federal Governments – alongside local councils – to reduce waste, remove arbitrary rate capping regimes and provide greater direct funding for infrastructure projects.

Workforce While additional funding will go some way to bridging the gap, without efficient spending and management we are unlikely to receive the maximum benefit from our investment. As a result, we need to develop the workforce within Local Government, strengthening in-house expertise rather than relying on outsourcing to the private sector. We need to ensure that our councils know what they are buying, and that they are in the best position to efficiently and effectively manage complex investments.

Strong Local Government will place us in the best position to direct new investment, efficiently maintain community infrastructure, minimise waste and deliver the best value for ratepayer dollars.

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Solution1. Support greater infrastructure investmentLocal Governments are under pressure to deliver the best value for ratepayer money. The largest and most important investment for councils is in local infrastructure. Inadequate investment in infrastructure can have a significant negative effect on local communities, causing increased congestion and economic loss. Insufficient maintenance of infrastructure can also substantially decrease the useful life of infrastructure and increases the safety risk to the community. To resolve these issues, councils need greater control over rate revenue – free from rate caps, and greater direct funding from State and Federal Governments. In particular, our regional councils need greater direct funding to maintain their large road networks.

2. Improve pipeline planning of projectsInfrastructure needs and planning requirements differ between councils. However, the guiding principle is that councils across Australia need to take a long-term view when planning for the ongoing needs of their communities. Each council should have a long-term plan regarding future projects, timing, scope, cost, workforce and economic benefits. Council policies regarding asset management are particularly important, as the projects that are undertaken - and the projects that are delayed or not carried out - can have a great impact on community living standards. While state-based regulation provides some guidance as to certain planning requirements, it provides no requirement for specific technical skills within councils to develop a firm pipeline of priority projects. The development of such a plan is vital if community living standards are to be maintained and improved.

3. Invest in engineering – build a sustainable workforceSmart asset maintenance and high-level technical expertise are arguably the most significant factors in delivering efficient infrastructure investment. In order to deliver smart investment, councils need to be informed purchasers. Adequate engineering capacity is integral at council level, as it allows councils to make informed decisions when investing in infrastructure. Local Government should ensure that engineering skills are at the forefront of any investment decision, and this requires the maintenance of a skilled workforce.

4. Improve procurement efficiencyLocal Governments have the capacity to fund additional infrastructure projects either by investing more money in infrastructure, or by spending money more efficiently and reducing waste. By employing the skills of engineers during the scoping, design and delivery of infrastructure, and by having capable, experienced engineers on-hand throughout the process, councils will have the ability to deliver infrastructure projects in a much more efficient manner. The pursuit of efficiency benefits each council by allowing revenue to stretch further and fund more projects, and by demonstrating to ratepayers that their money is being spent wisely.

5. Introduce Chief Engineers – support ongoing innovation through engineering leadershipThe key to efficient infrastructure investment is a skilled technical workforce. Skilled staff can significantly reduce waste and delays to achieve better outcomes for communities. The employment of skilled engineers should begin at the top, with the introduction of a Chief Engineer in each council, to manage local infrastructure needs and provide a sound base of knowledge. A Chief Engineer would ensure better value-for-money in councils, improved prioritisation of projects, optimal solutions and informed timetabling of maintenance and other investment. A Chief Engineer would also provide the elected councillors with better advice and enable them to make better decisions as to how ratepayer funds should be spent. This would help avoid the cost blowouts and safety issues that can occur due to poor scoping and design of projects. Additionally, the council Chief Executive would have a direct link to a well-qualified, experienced technical professional who could help guide infrastructure investment policy.

6. Register engineersQuality Local Government is heavily reliant on its level of engineering skill. Engineers are integral in the management of new investment and maintenance. To avoid economic loss, deliver best-value investment, and protect the health and safety of the community, the registration of engineers should be a priority across the sector. Registered and accredited professional engineers who maintain and enhance their professional skills provide the best opportunity for effective and efficient Local Governments.

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How you can help to achieve solutions

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Strengthening Local Government requires a plan and expert guidance. This is our plan, but it only works with your direction and input.

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1. Help identify, confirm and understand the issuesTo begin, there needs to be an issue, or an opportunity. In most cases, issues lead to opportunity. We know there are issues in funding and workforce development in Local Government because our members have told us, but we must ensure we fully understand the problems. Once the issues are known, we consult, research, and confirm.

2. Help us identify and engage with stakeholdersThe best arguments are backed by evidence and are supported by experts. Once the issue is known, we seek out experienced industry experts and get their evidence. If our argument can be improved, we want to know.

3. Identify and test solutionsNow that we know the issue and have developed our vision for better Local Government, we can build the campaign. The purpose of a campaign is to identify the key stakeholders and to raise awareness of the issues. We do this by demonstrating support for the campaign and highlighting the consequences if the problems are not resolved.

4. Build the campaignFor every issue to be overcome, we need a viable solution – the light at the end of the tunnel. Using the best minds at our disposal, we will develop a list of solutions, guided by industry experts. We might not win over everybody, but through gaining feedback from qualified technical professionals in Local Government, we can devise new solutions.

5. Create community awarenessIt is critical that decision-makers understand there is support for the solutions being presented in the campaign. Building support means engaging in activities designed to target different audiences and generate wide-spread backing. Activities include generating media coverage, writing to members, consulting with industry, engaging social media, and producing and distributing information such as flyers, posters, videos.

6. Lobby the decision-makersWe know the issue. We know the solution. We’ve collected as much support as possible, and it’s overwhelming. The next step is to package it up, and begin lobbying the decision-makers. The idea is to present our story and the arguments in a manner in which the decision-makers cannot ignore. If the argument is sound, support is strong and the solutions are deliverable and achievable, there should be no reason for the decision-makers not to listen and act. While they might not fear us, they probably fear you.

7. BargainingA key part of delivering better Local Government is the development, attraction and retention of a skilled workforce. Effective bargaining requires strong Professionals Australia membership throughout the industry, and is critical in achieving better career paths, job security, payment of registration for engineers, access to professional development, and wages and conditions that facilitate the attraction and retention of skilled professionals in Local Government.

8. Maintain the relationshipsWe have done a lot of hard work bridging the gap between those on the ground, and those calling the shots. Regardless of the outcome, we’ll have formed valuable relationships that should be maintained. Please contact __________, at [email protected] to have your say in our plan.

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Professionals AustraliaSTREET ADDRESS 163 Eastern Rd, South Melbourne Victoria 3205, Australia

POSTAL ADDRESS GPO Box 1272, Melbourne Victoria 3001, Australia

TELEPHONE 1300 273 762

EMAIL [email protected]

WEB www.professionalsaustralia.org.au

Local Goverment Narrative

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Transcript of Local Goverment Narrative