Local Government Amendment Bill
2005

This explanatory note relates to this Bill as introduced into Parliament.

Overview of Bill

The object of this Bill is to amend the Local Government Act 1993 (the principal
Act):

(a) to enable a council to make an application to the Minister for approval to
reduce the number of its councillors (within certain limits), and

(b) to require a council to adopt each year a policy concerning expenses and
facilities, and

(c) to enable the Director-General of the Department of Local Government to
approve standard forms of contract relating to certain conditions of
employment of general managers and other senior staff of councils, and

(d) to enable a contempt in the face of the Pecuniary Interest and Disciplinary
Tribunal to be referred to the Supreme Court, and

(e) to clarify certain provisions relating to pecuniary interests.

The Bill also makes the following amendments:

(a) amends the Freedom of Information Act 1989 to exempt from the operation of
that Act the Department of Local Government in relation to its complaint
handling and investigative functions,

(b) amends the Local Government Amendment (Public-Private Partnerships) Act
2004 in relation to the definition of a public-private partnership, the referral of
public-private partnerships to the Local Government Project Review
Committee and the quorum of that Committee.

Outline of provisions

Clause 1 sets out the name (also called the short title) of the proposed Act.

Clause 2 provides for the commencement of the proposed Act on a day or days to be
appointed by proclamation.

Clause 3 is a formal provision that gives effect to the amendments to the principal
Act set out in Schedule 1.

Clause 4 is a formal provision that gives effect to the amendments to the Freedom of
Information Act 1989 and the Local Government Amendment (Public-Private
Partnerships) Act 2004 set out in Schedule 2.

Schedule 1 Amendment of Local Government Act
1993
Reduction in number of councillors
Schedule 1 [1] inserts proposed section 224A into the principal Act to enable the
Minister to approve a reduction in the number of councillors of a council if the
council applies for a reduction. Public notice must be given of the application and
submissions may be made to the council concerning it by interested members of the
public. An application for reduction may be made by a council only within the period
of 12 months after the commencement of the proposed section.

Schedule 1 [5] inserts proposed section 294A into the principal Act to provide that a
council is not to fill a casual vacancy in the office of a councillor if the Minister has
approved an application from the council under proposed section 224A to reduce the
number of councillors. Proposed section 294A will not authorise a casual vacancy to
remain unfilled if it results in the number of councillors being less than the reduced
number approved by the Minister.

Policies concerning expenses and facilities of councils
Currently, a council must adopt a policy for the payment of expenses or provision of
facilities under section 252 of the principal Act and must give public notice of the
proposed adoption or amendment of such a policy under section 253.

Schedule 1 [2] amends section 252 of the principal Act to require councils to adopt
such a policy within 5 months after the end of each year. Year is defined in the
principal Act to mean the period from 1 July to the following 30 June.

Schedule 1 [3] amends section 252 of the principal Act to require a council to ensure
that the policy adopted complies with the principal Act, the regulations under it and
any relevant guidelines issued by the Director-General of the Department of Local
Government under section 23A of the principal Act.

Schedule 1 [4] substitutes section 253 of the principal Act to make it clear that a
council is to engage in public consultation before adopting such a policy each year
(whether or not the policy is being amended) and whenever it amends the policy. The
proposed section also requires a council to forward a copy of its policy, and the
public submissions made on it, to the Director-General of the Department of Local
Government after its adoption each year.

Employment of senior staff of councils
Schedule 1 [6] amends section 338 of the principal Act to enable the
Director-General of the Department of Local Government to approve standard
employment contracts for the general managers and other senior staff of councils.

The standard contracts so approved are not to contain provisions relating to
performance-based requirements, the duration of the contract or the level of
remuneration or salary (including employment benefits) of the person employed
under the contract. However, a council can add any such provisions (but no others)
to the standard contract. A council is to use such standard contracts when employing
senior staff. The requirements will not affect existing contracts unless they are
renewed.

Pecuniary interest provisions
Schedule 1 [7]–[9] amend sections 442 and 443 of the principal Act to make it clear
that a person has a pecuniary interest in a matter for the purposes of the principal Act
if the person’s spouse, de facto partner, relative, partner or employer has such an
interest or if a company or other body has such an interest, being a company or body
of which the person, or a nominee, partner or employee of the person, is a member.

Schedule 1 [10] and [11] make consequential amendments.

Schedule 1 [12] amends section 451 of the principal Act to make it clear that a person
who is a councillor or member of a council committee is not prevented by that section
from attending a meeting on, and voting on, a matter being considered by the council
or committee merely because the person holds an interest specified in section 448 of
that Act as being exempt from the disclosure requirements and other pecuniary
interest requirements of Chapter 14 of that Act.

Contempt of Pecuniary Interest and Disciplinary Tribunal
Schedule 1 [13] enables the Pecuniary Interest and Disciplinary Tribunal to report
certain behaviour that amounts to a contempt in the face of the Tribunal to the
Supreme Court for punishment.

Savings and transitional provisions
Schedule 1 [14] enables regulations to be made containing provisions of a savings or
transitional nature consequent on the enactment of the proposed Act.

Schedule 2 Amendment of other Acts
Schedule 2.1 amends the Freedom of Information Act 1989 to exempt from the
operation of that Act the Department of Local Government (including the
Director-General of the Department and Departmental representatives) but only in
relation to complaint handling and investigative functions conferred by or under any
Act on that Department.

Schedule 2.2 amends the Local Government Amendment (Public-Private
Partnerships) Act 2004.

Schedule 2.2 [3] amends that Act to replace the definition of a public-private
partnership. Currently, the term is defined to mean an entity (such as a partnership,
trust or corporation) that is formed under an arrangement between a council and a
private person for the purposes of providing public infrastructure or facilities (in
respect of which the council retains a beneficial interest) or delivering services. The
new definition of that term will provide that a public-private partnership is an
arrangement (whether or not involving the formation of an entity) between a council
and a private person for the purposes of providing public infrastructure or facilities
(in respect of which the council has an interest, liability or responsibility) or
delivering services. The regulations may exclude types of arrangements from the
definition. Schedule 2.2 [1], [2], [4]–[8], [10] and [12]–[14] contain consequential
amendments.

Schedule 2.2 [9] and [11] amend that Act to provide that the Minister can only direct
that a public-private partnership (PPP) is to be referred to the Local Government
Project Review Committee if the Minister is of the opinion that the council
concerned in the PPP has not complied with the PPP guidelines issued by the
Director-General of the Department of Local Government. Currently, the Minister
may make such a referral on any grounds the Minister thinks fit.

Schedule 2.2 [15] amends the quorum provisions in that Act relating to the Local
Government Project Review Committee to provide that a quorum will be achieved if
a majority of the permanent members on the Committee are present. Currently, the
provisions require a majority of members for the time being to be present which
would include members appointed from time to time by the Director-General of the
Department of Local Government to assist the Committee in the exercise of its
functions.

Note: If this Bill is not modified, these Explanatory Notes would reflect the Bill as passed in the House. If the Bill has been amended by Committee, these Explanatory Notes may not necessarily reflect the Bill as passed.

 

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