Interventions, repayments and retirements (#347)

New episode News

On the Local Government News Roundup for Monday 10th June 2024:

  • A change of Chair announced for Moira Shire’s panel of administrators
  • The media spotlight falls on a record number of government interventions at Victorian councils
  • A Sydney council ordered to hand back $36M to the state government
  • More local government leaders announce retirement ahead of elections
  • The City of Newcastle letter-writing scandal re-ignited
  • New speaking rules at Brisbane City Council draw criticism
  • A South Australian Council announces its new CEO
  • And a warning that UK councils face a £6.2B funding gap in the next two years

Plus Wangaratta council CEO Brendan McGrath on the value of conducting an organisational health check.

Plus more Council news from across Australia and beyond on the Local Government News Roundup, brought to you by the Victorian Local Governance Association,

with support from Davidson, the nationally recognised executive recruitment service and business advisory practice, presenting LG Innovate: Artificial Intelligence Summit for the local government C-Suite at Peregian Beach in September – early bird bookings open now.

Listen to this episode here, and find the link for your podcast player here.

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Transcript for episode 347:

Victorian Roundup:

Dr Graeme Emonson will take over as Chairperson of Moira Shire Council’s panel of administrators this week.

He succeeds John Tanner AM, whose term finished on Sunday 9th June.

Mr Tanner has the led the council since the government removed the elected representatives last year over significant governance failures identified through a Commission of Inquiry.

The panel, which also includes former member of Parliament Suzanna Sheed AM, will remain in place until elections in October 2028.

Minister for Local Government Melissa Horne thanked Mr Tanner for his leadership of the panel, and said she has full faith that Dr Emonson will continue the work to move Moira Shire Council forward.

Dr Emonson has been CEO of a number of councils and a senior executive in the state government before taking on the administrator role at Moira last year.

From The Age over the weekend, a look at the record number of interventions by the state government into local councils in Victoria.

Four of the state’s 79 councils are under administration, with no elected councillors, and a further six councils have municipal monitors in place to observe and report on governance concerns.

Reports of unruly meetings, absenteeism, financial mismanagement, and in one extreme case, a murder are pointed to as the cause of the interventions, and proposed reforms that would give the local government minister the power to remove individual councillors.

The MAV is concerned about insufficient checks on the minister’s proposed powers, while the state opposition believes the reforms are an example of interference in the operation of councils.

However, some current and former councillors have told the Age about the value of having monitors, and the need for intervention to break a pattern of incivility.

Wodonga Council’s CEO Matthew Hyde and Mayor Cr Ron Mildren have met with the Victorian Minister for Health Mary-Anne Thomas to discuss concerns about the Albury Wodonga Regional Health Service and hospital redevelopment.

Mayor Mildren said the meeting was used to highlight issues such as cost escalations, infrastructure adequacy, and the need for a purpose-built, single-site hospital.

The council believes that the current proposal does not sufficiently consider the project as a whole and the growing healthcare needs of the region.

He said they strongly urged the Minister to reconsider the department’s current position of proceeding with the existing site, while the Minister expressed doubts around the veracity of the information provided to the council and committed to supplying accurate data to inform its ongoing position.

Ararat Rural City Council has expressed condolences on the passing of Henry Gunstone, who served the council for 36 years in various roles, including as International Relations Officer until his retirement in 2011.

He was instrumental in establishing the Gum San Chinese Heritage Centre and the sister city relationship between Ararat and Tai Shan City in China.

A talented sportsman, Henry also played for the South Melbourne Football Club and the Richmond Cricket Club. His exceptional public relations skills, dedication, and loyalty have left a remarkable legacy.

Victorian Briefs:

Merri-bek residents are being warned about a scam email that appears to have come from the council.

The council says it did not send the fraudulent email, headed “donation cash grant” and its systems have not been compromised.

Recipients are asked to disregard and delete the email immediately.

A City of Shepparton Mayoral blazer, gifted by Murray Slee, was officially unveiled by Greater Shepparton City Council last week.

Mr Slee is a prominent figure in Shepparton’s history, having served as a Councillor for 34 years and as Mayor for three terms.

The blazer was gifted to Mayor Cr Shane Sali on Mr Slee’s 100th birthday, celebrated on 23 April 2023, and is now displayed in the Council Boardroom foyer.

Victorians are being encouraged to visit their local libraries and participate in this year’s Warm Winter Read, a reading challenge supported by the state Government.

The challenge, now in its third year, invites individuals aged 16 and over to read books during the winter months, with participants eligible to compete for book pack prizes.

Minister for Local Government Melissa Horne launched the challenge last week at Wheeler’s Hill library in the City of Monash.

National Roundup:

NSW:

The NSW government has ordered Hornsby Shire Council to repay $36 million from the controversial Stronger Communities Grant Fund, which was accused of favouring Coalition electorates.

The fund was set up in 2017 to support councils forced to merge, but 96% of grants were awarded to councils in Liberal and National seats, including some that never merged.

Hornsby Shire Council was awarded a $40 million grant in 2018 for the Westleigh Park project, but as the Sydney Morning Herald has reported, significant delays and limited progress have led to the council being asked to return the unspent funds.

ALGA President, Cr Linda Scott, has announced that she will not be renominating for Labor pre-selection ahead of council elections in September.

Cr Scott has served 12 years as a City of Sydney councillor, including as Deputy Lord Mayor.

She was also the first female President of Local Government NSW.

Cr Scott said she will continue to serve on the council and as President of ALGA until the September elections.

An external investigation into the turnover of CEOs at Liverpool Council has been deferred due to concerns it could interfere with an ongoing NSW Government probe into council management.

The Daily Telegraph reported that the decision came just before a controversial decision to terminate CEO John Ajaka’s contract.

The investigation was proposed to examine the reasons behind the high turnover of council CEOs from 2008 to 2024.

The Office of Local Government (OLG) is currently investigating the council’s recruitment process and alleged mismanagement of a $600m development project.

A letter-writing scandal in the city of Newcastle has been reignited by the Newcastle Herald, which says its investigation has revealed a series of emails from a pro-council letter writer, Jason Sivo, with alleged links to Scott Neylon, a friend of the council’s CEO Jeremy Bath.

The emails, retrieved from an archive of deleted correspondence, suggest that Jason Sivo has access to inside information about local government activities.

The masthead says Mr Sivo and Mr Neylon have used the same mobile phone number in their submissions to the Herald, and both have shown support for City of Newcastle and the Newcastle V8 Supercars race.

The paper’s attempts to contact Sivo have been unsuccessful, and Mr Neylon has not responded to questions about their relationship.

QLD:

The LNP administration at Brisbane City Council has proposed new rules to shorten speech and debate times during council meetings, aiming for “more family-friendly hours” for council employees.

ABC News reported that opposition and crossbench councillors have criticised the move as an attempt to stifle debate and reduce scrutiny.

The proposed changes include cutting a councillor’s speaking time on committee reports from ten minutes to five and limiting all debate on all nine committee reports to three hours.

The changes will be subject to public consultation after approval by the council.

Sunshine Coast Council has approved a controversial seawall project, in the face of opposition from local businesses and beach advocates.

The Courier Mail reported that Mayor Rosanna Natoli and Councillor Joe Natoli were excluded from voting due to a conflict of interest involving campaign donation, after being outspoken against the project during the election campaign.

The project has faced significant community pushback, with concerns about beach loss and the impact on local businesses, particularly during thea construction period.

Deputy Mayor Maria Suarez has argued that the project will help attract visitors and support the local economy.

SA:

The future of cruises to Kangaroo Island and Port Lincoln is uncertain as P&O Cruises Australia will cease operations next year, and the Pacific Explorer will be retired.

While the economic impact is being assessed, there are mixed feelings among residents about the cessation of the cruises, according to a report from the Adelaide Advertiser (6th June 2024).

Kangaroo Island Mayor Michael Pengilly acknowledged that while some businesses benefited, there was also growing dissatisfaction among residents due to the area’s limited facilities for mass tourism.

Port Adelaide Enfield Mayor Claire Boan said the loss of regular cruise visits to Outer Harbor was disappointing, as cruise tourism was a significant contributor to the local economy.

Adelaide City Council is set to lose its carbon neutral status as it pivots to a “net zero ready city” under a new climate strategy, according to a report from InDaily.

The council will discontinue paying for carbon offsets, a move expected to save $330,000 in the draft 2024-25 budget.

Instead, it will invest in direct emission reduction activities.

However, the shift may result in a less favourable global benchmark within Climate Disclosure Project reporting.

The new climate strategy includes eliminating the heat island effect, increasing active transport, supporting Aboriginal land management practices, and transitioning to a decarbonised economy.

TAS:

George Town Council in Northern Tasmania has delayed the implementation of a new cat management policy by a month to allow for further community consultations.

The policy, which aims to manage stray cat populations and coordinate de-sexing and micro-chipping programs, has been over a year in the making.

The councillor-proposed delay was controversial in the chamber, with some councillors criticising the proposal for unnecessarily prolonging the process.

The delay was ultimately passed by a margin of one vote, according to the Launceston Examiner (7th June 2024)

National Briefs:

SA’s District Council of Karoonda East Murray has appointed Scott Reardon as its new chief executive officer.

Mr Reardon is currently Acting CEO at Coober Pedy, as has worked previously at the Town of Walkerville and the City of Holdfast Bay.

He takes up the role in mid-July.

Dogs will be allowed in the Cairns CBD from 1 July, with the exception of the Esplanade Lagoon area.

The decision follows amendments to Local Laws and a public consultation period, during which the majority of responses favoured reducing dog prohibition areas.

The change aims to improve community liveability and encourage more people to visit and participate in city activities.

The Mayor of Leeton, in NSW, is the latest to announce retirement ahead of September’s council elections.

The Griffith Area News (10 June 2024) reported that Tony Reneker will step down after two terms on the council, the last three years as mayor.

The former Police Chief Inspector says its time for some fresh blood on the council.

Global Roundup:

EUROPE:

The UK Local Government Association (LGA) has published a White Paper highlighting a £6.2 billion funding gap facing English councils over the next two years, driven by rising costs and demand pressures in areas such as adult social care, children’s services, and homelessness support.

The LGA is calling for a significant and sustained increase in council funding, multi-year funding settlements, and reform of the local government finance system.

The White Paper also advocates for a major review of public service reform, focusing on a joint approach to investing in preventative services and reducing demands on high need services.

Two Liberal Democrat campaigners have been arrested on suspicion of election offences related to a leaflet that falsely claimed the Green Party was not contesting a by-election in North Yorkshire.

The misinformation, which the Liberal Democrats attributed to a “printing mistake”, led to a formal complaint by the Greens.

BBC News reported that the suspects, aged in their 60s and 20s, were released pending further investigation.

In the local elections in Ireland, Fine Gael and Fianna Fáil are competing to be the largest party in local government, according to reporting from the Irish Times.

With over 600 of 949 councillors elected as of Sunday night, Fine Gael has won 181 seats with a 22.8% share of the first preference vote, ahead of Fianna Fáil’s 156 seats with a 23% share.

Independents and others have taken 150 seats with nearly 28% of the vote.

Sinn Féin had a disappointing performance, winning 60 council seats and less than 12% of the first preference vote.

NZ:

Auckland Council is warning households that regularly misuse their recycling bins by putting general rubbish in them, that they could have their bins taken away.

Newshub reports that new recycling rules were implemented in February, with several items such as aerosol cans, lids, and aluminium trays no longer recyclable.

The council’s recovery facility has found bins contaminated with items like dirty nappies, old shoes, and wire dish racks.

Repeat offenders will be educated and given three warnings before their bin is replaced with a clear bag for recycling.

USA:

Maui County Council in Hawaii has unanimously voted against a U.S. military proposal to build new telescopes on the Haleakala volcano.

The site’s sacred significance and previous issues with environmental cleanup were cited as reasons for the decision, according to ABC News.

The proposed facility would be used to track objects in space.

The council resolution also urged the National Park Service, Federal Aviation Administration, and the Hawaii Department of Land and Natural Resources to deny permits for the project.

JAPAN:

Fuji City in Japan has become the second town in recent months to take measures to prevent tourists from causing disruption while trying to capture pictures of Mount Fuji.

The influx of visitors to the ‘Fuji Dream Bridge’, which offers a perfect alignment with the mountain, has led to issues with illegal parking, litter, noise, and even public defecation.

Tourists have ignored warnings, leading officials to install a barricade to block photographers.

The increase in visitors is attributed to social media influencers, with the majority of visitors being foreigners.

Roundup Extra:

Interview with Brendan McGrath, CEO of Rural City of Wangaratta on the value of conducting an organisational health check.