ATENTADO EN LA CAFETERÍA ROLANDO DE MADRID 13/09/1974.

In 1997, the Australian Government engaged the former Industry Commission (which was replaced by the Productivity Commission in April 1998) to examine the feasibility of producing a nationally consistent approach to performance measurement in local government efficiency. This study was conducted as part of a legislative requirement and concluded that:

• a nationally consistent approach to performance measurement of local government was not warranted

• state and territory approaches to performance measurement have significant shortcomings, and

• there would be considerable net benefit to the community from improving state and territory approaches to performance measurement in local government.

Subsequently, the states have generally worked collaboratively with their local government associations to develop a performance improvement culture and develop state-wide indicators or range of indicators that have been adopted in assessing the overall performance of local government.

A summary of these initiatives are shown in Table 2.6 below.

Table 2.6: local government performance measures State Efficiency Improvement Initiatives

NSW The Department of Local Government’s annual Comparative Information on New South Wales Local Government Councils reports on 36 performance indicators in 11 areas including finance, planning, environmental management and community services. The Department of Local Government produces four data collections relating to rates, finances, waste management and general

information. The information has been used to calculate financial assistance grants, analyse councils’ financial health and check compliance of rates collected. To promote use, transparency and accountability, the publication and raw data is freely available on the internet.

A 1998 Independent Pricing and Regulatory Tribunal (IPART) review found that local government can reduce costs, improve accountability and provide better service to the community by undertaking performance benchmarking. The report recommended that benchmarking should be applied to those functions that constitute a significant share of total expenditure, in addition to broader changes to the environment local government operates under, particularly improved monitoring of performance outcomes through independent auditors.55

Victoria The Department for Victorian Communities’ annual publication Local Government in Victoria reports on rates, operating and capital expenditure, debt, infrastructure renewal, operating result, community satisfaction with overall performance, advocacy and engagement. Performance measures are analysed across groups of inner metropolitan, outer metropolitan, regional city, small shire and large shire councils.

Some 77 councils voluntarily participated in the 2005 annual Community Satisfaction Survey.

55

IPART 1997, News Release: Benchmarking can improve Local Government Performance - But more is required, 18 December 1997.

State Efficiency Improvement Initiatives

Queensland The Department of Local Government, Planning, Sport and Recreation’s annual Local Government Comparative Information report includes comprehensive information on road maintenance, water, sewerage, waste management, library services, financial management and rates.

WA The Department of Local Government and Regional Development is developing a new system for monitoring the operations of councils to enable performance to be assessed in key areas of activity. The use of internet technology to collect data from councils is being explored.

SA The LGASA has continued its Comparative Performance Measurement Project in 2004-05. Twenty- nine councils are providing data against 18 KPIs for governance, community satisfaction, finance and asset management, and quality of life. Councils can compare their performance against the average results for councils grouped by sector. The 2005 project results will be made publicly available to facilitate comparisons.

Tasmania The Local Government Division within the Department of Premier and Cabinet released the fifth annual report Measuring Council Performance in Tasmania 2003-04 on councils’ key performance indicators. All councils voluntarily contribute data for the report. The reports over the last five years show a consistent downward trend in the debt service ratio and a consistent reduction in the level of outstanding rates at the end of the financial year. A committee, composed of officials from councils, the Local Government Association of Tasmania, the State Grants Commission and the Local Government Division, is reviewing use of the current key performance indicators; the outcome is expected to appear in the 2005-06 report.

NT The Northern Territory Government has been collecting comparable performance indicators since 1997-98. As smaller and remote councils have had difficulty providing information, the Department of Development, Sport and Cultural Affairs in conjunction with the Northern Territory Grants

Commission requires all councils to submit an annual return of local government data which combines the requirements of both agencies and simplifies the reporting process for councils to provide financial and performance data.

ACT The ACT’s local government performance measurement is based largely on an annual report, which focuses on benchmarking and reporting on environmental management of waste, roads and urban parks and places. Roads ACT and Canberra Urban Parks and Places have also initiated improved asset management systems. There are also additional benchmarking activities under consideration. National The Australian Government, via DOTARS, has increased its role with local government by

examining national best practice across a range of functions. These initiatives include national awards for local government and leading practice seminars. The national awards for local government were established in 1986. The awards aim to foster and acknowledge innovation and excellence in local government in responding to current and emerging issues relating to councils’ core business and to reflect an issue or subject that is topical to better reflect changes in both federal and local government priorities and address the government’s broad policy initiatives. The Leading Practice Seminar series is a DOTARS initiative started in 2000. Since that time, entrants in the awards have shared their experiences and the lessons learned; and have had the opportunity to discuss their experiences first-hand with well over 200 other local government bodies across Australia.

Source: DOTARS, Local Government National Report, 2004-05 Report on the Operation of the Local Government

(Financial Assistance) Act 1995, p. 65 and p. 74 – 76.