Councils deliver $5m reform bill
WA councils have delivered a $5 million bill to the State Government for its failed local government reform plan.
The WA Local Government Association has written to Local Government Minister Tony Simpson to request the money on behalf of 15 metropolitan councils to cover costs president Troy Pickard said were incurred “in good faith”.
In the letter WALGA argued the $5.4 million was “wholly based” on the Government’s original funding guidelines, meaning it included only those councils subject to a ministerially-accepted recommendation and only directly-attributable costs, excluding staff time.
The figure did not include costs covered by previous Government grants.
It is understood some councils opted to submit their own claims separately.
Tensions remain between councils and the State after a bruising reform process that ended in February when Premier Colin Barnett declared he had “run up the white flag” in the face of mounting opposition.
Having initially promised $15 million in grants and more in low interest loans to fund reform, Mr Barnett said at the time councils would not be reimbursed for what they had already spent.
A spokesman for Mr Simpson said yesterday the Minister had nothing further to add.
Mr Pickard said the size of the claim was modest.
“The claim represents only those costs incurred in directly responding to the State Government process under their original funding guidelines,” he said.
“It does not include staff time, despite significant staff resources being allocated to the reform process, representing opportunity costs for the local government sector.
“Local governments commenced this expenditure to progress reform in good faith as a result of Government policy and it is only fair they are not left short on the costs involved.
“And when you consider $15m was budgeted by the State for the process, a claim for $5.4m for work undertaken in preparation is certainly reasonable.”
The size of the claims varied considerably between councils, from the Shire of Kalamunda’s $23,506 to the City of Bayswater, which put in a request for $880,971.
That included $206,585 for staff positions dedicated to reform and $72,068 on consultants.
The City of Kwinana put in a request for $731,527 that included $423,636 forspent on consultants.
