Hunter Councils: Fit for purpose?

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Presentation transcript:

Hunter Councils: Fit for purpose? Presentation to 2016 Future of Local Government National Summit

The Hunter: A history of cooperation

How we’ve got to where we are Context The lingering impact of the change environment of the 1990s Voluntary structural reform in NSW Imperative to demonstrate efficiency and effectiveness Increasing demands on resources and shrinking / constrained revenue

Where that led to “Natural catchment” of shared services Adoption of a commercial business model open to private as well as public sector so that the businesses would be viable and ultimately self-funding Elimination of council subsidisation and introduction of either free or subsidised fee for service arrangements for member councils Introduction of complete contestability in regard to business operations Geographic expansion, high profile, constant reinvestment and service growth

Hunter Records Management

The LGTI

Environment Services

Consultancy Services

Eleven LGA “asset owners” Fourteen LGA members in relation to environmental programs Twelve LGA members in relation to film and television Forty council members in regard to Procurement Over 100 LGA customers in regard to training programs (in four States) Over 40 LGA clients in regard to records management (many more private sector clients) 40 council clients in regard to legal services Consultancy advice provided in four states and six overseas countries Substantial assets. Low debt Extremely cohesive region.

Our Board and Regional Advocacy

“Strategic Services Australia” Fit for the Future Joint Organisation “Strategic Services Australia”

What changes in our world? What are the dangers?

Strategic Services Australia Limited Hunter Councils Incorporated Administration, Finance and Technology Environment Screen Hunter Consultancy Services Strategic Services Australia Limited Hunter Records Storage Regional Procurement Local Government Training Institute Leadership and Development Australia Local Government Legal Hunter Councils Regional Advocacy / Government Partnerships Strategic Services Australia Limited Hunter Records Management Regional Procurement Local Government Training Institute Leadership and Development Australia Administration, Finance and Technology Environment Services including consultancy services Screen Hunter Strategic Consultancy Services Internal Audit / Probity / Risk Management / Investigation Services (Business Services) Local Government Legal

Sharpening of focus through the Joint Organisation Creation of new accountability mechanisms (essentially a very good thing) Sharpening of focus through the Joint Organisation

Potential increase in competition (not a bad thing) Potential exacerbation of “being a business” as opposed to “doing what is needed”

Potential issues re ownership across regions Potential changes in ownership mix and owner dynamic through amalgamation Potential issues re ownership across regions

Potential impacts of poor implementation sector wide Potential freeze in decision making / lack of preparedness to invest / lack of focus in building a future Potential impacts of poor implementation sector wide “Contestability” Conflict of Interest

Do we “cash in”?

Fit for the Future a missed opportunity What makes a local council? The digital economy Fit for the Future a missed opportunity What makes a local council?