September 2013

OCM068.3/10/13

THEVOICEOFLOCAL GOVERNMENT

SEPTEMBER 2013

STATECOUNCILFULL

MINUTES

WALGA State Council Meeting Wednesday 4 September 2013 Page 1 W A L G A

State Council Agenda OCM068.3/10/13

NOTICE OF MEETING Meeting No. 4 of 2013 of the Western Australian Local Government Association State Council to be held at WALGA, 15 Altona St, West Perth on Wednesday 4 September 2013 beginning at 4:00pm.

1. ATTENDANCE, APOLOGIES & ANNOUNCEMENTS

1.1 Attendance Chairman President of WALGA Mayor Troy Pickard

Members Avon-Midland Country Zone Cr Lawrie Short Pilbara Country Zone Mayor Kelly Howlett (Deputy) Central Country Zone Mayor Don Ennis Central Metropolitan Zone Cr Janet Davidson JP Mayor Heather Henderson East Metropolitan Zone Mayor Terence Kenyon JP Cr Mick Wainwright Goldfields Esperance Country Zone Mayor Ron Yuryevich AM RFD Great Eastern Country Zone President Cr Eileen O’Connell Great Southern Country Zone President Cr Ken Clements (Deputy) Kimberley Country Zone Cr Chris Mitchell Murchison Country Zone President Cr Simon Broad Gascoyne Country Zone Cr Ross Winzer North Metropolitan Zone Cr Stuart MacKenzie (Deputy) Northern Country Zone President Cr Karen Chappel Peel Country Zone President Cr Wally Barrett South East Metropolitan Zone Mayor Cr Henry Zelones JP Cr Julie Brown South Metropolitan Zone Mayor Cr Carol Adams Cr Doug Thompson Cr Tony Romano South West Country Zone President Cr Wayne Sanford

Ex-Officio Local Government Managers Australia Dr Shayne Silcox

Secretariat Chief Executive Officer Ms Ricky Burges Deputy Chief Executive Officer Mr Wayne Scheggia EM Governance & Corporate Services Mr Tony Brown Manager Governance Mr James McGovern EM Marketing & Communications Mr Zac Donovan EM Environment & Waste Mr Mark Batty EM Workplace Solutions Mr John Phillips EM Infrastructure Mr Ian Duncan EM Corporate Business Solutions Mr Nick Wood Policy Manager Community Ms Jodie Holbrook EO Governance and Strategy Ms Chantelle O’Brien Finance Manager Tina Mosscrop

1.2 Apologies Associate The Rt Hon Lord Mayor of the City of Perth Ms Lisa Scaffidi Deputy President of WALGA President Cr Lynne Craigie Pilbara Country Zone Northern Metropolitan Zone Mayor Tracey Roberts JP Cr David Michael Cr Geoff Amphlett JP Great Southern Country Zone President Cr Barry Webster Secretariat EM Planning & Community Development Ms Allison Hailes

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1.3 Announcements

WALGA’s Environment and Waste Unit ran a booth at the 2013 Local Government Convention to raise awareness about their work for Local Government. As part of this booth, they ran ‘Cash for Containers’ scheme. Small bags of lollies were handed out, and convention delegates were encouraged to return their empty packaging to enter a draw to win a soda stream, State Councillor Eileen O’Connell took part in this competition, and won the prize. Congratulations.

2. MINUTES

2.1 Minutes of 3 July State Council Meeting

Recommendation

Moved: Mayor D Ennis Seconded: Mayor H Zelones

That the Minutes of the Western Australian Local Government Association (WALGA) State Council Meeting held on 3 July 2013 be confirmed as a true and correct record of proceedings.

RESOLUTION 240.4/2013 CARRIED

2.1.1 Business Arising from the Minutes 3 July 2013

Ms Ricky Burges, Ms Tina Mosscrop, Mr Zac Donovan, Mr Mark Batty, Mr Ian Duncan, Mr Wayne Scheggia, Ms Chantelle O’Brien, Ms Jodie Holbrook, Mr James McGovern, Mr John Phillips and Mr Nick Wood left the meeting at 4.10pm

Mayor Kelly Howlett arrived at the meeting at 4.25pm.

CEO CONTRACT RENEWAL Recommendation

Moved: President Cr S Broad Seconded: Cr L Short

That a new contract of employment under the existing terms and conditions (noting the adjustments made at State Council Meeting 3 July 2013) be offered to Ricky Burges, WALGA CEO effective immediately.

RESOLUTION 241.4 /2013 CARRIED UNANIMOUSLY

Cr Mick Wainwright and Cr Tony Romano left the meeting at 4.45pm and did not return.

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2.2 Minutes of 30 May Special State Council Meeting

Recommendation

Moved: Mayor D Ennis Seconded: Mayor H Zelones

That the Minutes of the Western Australian Local Government Association (WALGA) Special State Council Meeting held on 30 May 2013 be confirmed as a true and correct record of proceedings.

RESOLUTION 242.4/2013 CARRIED

2.2.1 Business Arising from the Minutes 30 May 2013 There was no business arising from these Minutes.

3. DECLARATIONS OF INTEREST

Cr Chris Mitchell declared an interest on Item 5.9, Planning Provisions for Bushfire: Background Paper.

4. EMERGING ISSUES There were no Emerging Issues for consideration.

5. MATTERS FOR DECISION  As per matters listed  Items Under Separate Cover to State Council only

6. MATTERS FOR NOTING / INFORMATION  As per matters listed.

7. ORGANISATIONAL REPORTS 7.1 Key Activity Report 7.1.1 Environment and Waste 7.1.2 Governance and Strategy 7.1.3 Infrastructure 7.1.4 Planning and Community Development

7.2 Policy Forum Reports 7.2.1 Policy Forum Reports

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7.3 President’s Report Recommendation That the President’s Report for September 2013 be received. 7.4 CEO’s Report Recommendation That the CEO’s Report for September 2013 be received.

8. ADDITIONAL ZONE RESOLUTIONS To be advised following Zone meetings.

9. MEETING ASSESSMENT Mayor Ron Yuryevich be requested to provide feedback as to the effectiveness of the meeting.

10. DATE OF NEXT MEETING

Recommendation That the next meeting of the Western Australia Local Government Association State Council be held in the Boardroom at WALGA, 15 Altona Street West Perth, on Wednesday, 4 December 2013, commencing 4pm.

11. CLOSURE

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Agenda Items

5. MATTERS FOR DECISION ...... 6 5.1 Metropolitan Local Government Review – State Government Response (05-034-01- 0018 TL) ...... 6 5.2 Country Local Government Fund (05-055-03-0005 JB) ...... 14 5.3 2013 Annual General Meeting Minutes (01-003-02-0003 WS) ...... 19 5.4 Building Act 2011 – Fees, charges and administrative requirements (05-015-02-0005 VJ) 25 5.5 Assistance for WA’s Rural Local Governments and Communities (05-100-03-0001 PS) .... 40 5.6 Review of the Roads to Recovery Program (05-008-03-0002 MM & MB) ...... 74 5.7 Heavy Vehicle Charging and Investment Reform – Options Development Submission (05-088-03-0001 PS) ...... 77 5.8 Community Emergency Risk Assessment Tool (03-044-01-0001JL) ...... 81 5.9 Planning Provisions for Bushfire: Background Paper (05-024-02-0056 CG) ...... 99 5.10 Local Government Town Planning Guideline for Alcohol Outlets (06-045-01-0001 VJ). .... 129 5.11 Integrated Strategic Plan for Emergency Management / Bushfires Governance in WA (05-024-03-0028 EF) ...... 143

6. MATTERS FOR NOTING / INFORMATION ...... 148 6.1 Road Wise Funding Reduction (WFS) ...... 148 6.2 Affordable Housing: Opportunities for Local Government Background Paper (05-036-03- 0020 CG) ...... 150 6.3 Strategic Assessment for the Perth Peel Region (05-101-02-0001 MB) ...... 185 6.4 National Strategic Plan for Asbestos Awareness and Management Update (05-012-04- 0002 EF) ...... 189 6.5 State Budget 2013-14 (05-088-03-0001 PS) ...... 192

7. ORGANISATIONAL REPORTS ...... 196 7.1 Key Activity Reports ...... 196 7.1.1 Report on Key Activities, Environment and Waste Policy Team (01-006-03-0017 MB) .... 196 7.1.2 Report on Key Activities, Governance and Strategy (01-006-03-0007 TB) ...... 200 7.1.3 Report on Key Activities, Infrastructure (05-001-02-0003 ID) ...... 203 7.1.4 Report on Key Activities, Planning and Community Development (01-006-03-0014 AH) ...208 7.2 Policy Forum Reports ...... 214 7.2 Policy Forum Reports (01-006-03-0007 TB) ...... 214

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5. MATTERS FOR DECISION

5.1 Metropolitan Local Government Review – State Government Response (05-034-01-0018 TL) By Tony Brown, Executive Manager Governance and Corporate Services, and Tim Lane, Manager Strategy and Reform

Moved: Mayor H Zelones Seconded: Mayor D Ennis

That WALGA: 1. Oppose the State Government’s proposal to remove in perpetuity the poll provisions for the metropolitan area contained in Schedule 2.1 of the Local Government Act 1995; 2. Continue to advocate for the State Government to honour its commitment to fund the transition and implementation process of the Metropolitan Local Government Review.

AMENDMENT

Moved: Mayor H Zelones Seconded: Mayor D Ennis

2. Adopt a position to support an amendment to the Metropolitan poll provisions, where any poll petitioned will be of the entire districts involved in the amalgamation proposal with the following conditions a For a poll to be held a petition will be required from 25% or electors of one local government b For an amalgamation to be rejected by the Minister, 50% of electors of all local governments proposed to be merged are required to vote, for it to be a valid poll. C a majority of votes at the poll against will defeat the amalgamation proposal

CARRIED

AMENDMENT

Moved: Cr D Thompson Seconded: Mayor C Adams

For point 2b to be changed to:

2b for an amalgamation to be rejected by the Minister, 30% of electors of all local governments proposed to be merged are required to vote, for it to be a valid poll.

LOST

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AMENDMENT

Moved: Mayor H Zelones Seconded: Cr C Mitchell

4. That WALGA request the Minister for Local Government to urgently develop legislation or regulations guiding the functions of the Local Implementation Committee and the appointment of an Interim CEO.

CARRIED

THE AMENDMENT BECAME THE MOTION

Due to the important nature of this item the President called for a vote on each number individually.

Moved: Mayor H Zelones Seconded: Mayor D Ennis

1. Oppose the State Government’s proposal to remove in perpetuity the poll provisions for the metropolitan area contained in Schedule 2.1 of the Local Government Act 1995;

RESOLUTION 243A.4/2013 CARRIED

2. Adopt a position to support an amendment to the Metropolitan poll provisions, where any poll petitioned will be of the entire districts involved in the amalgamation proposal with the following conditions a. For a poll to be held a petition will be required from 25% or electors of one local government b. For an amalgamation to be rejected by the Minister, 50% of electors of all local governments proposed to be merged are required to vote, for it to be a valid poll. c. a majority of votes at the poll against will defeat the amalgamation proposal

RESOLUTION 243B.4/2013 CARRIED

3. Continue to advocate for the State Government to honour its commitment to fund the transition and implementation process of the Metropolitan Local Government Review

RESOLUTION243C.4/2013 CARRIED

RESOLUTION 243D.4/2013 CARRIED

Cr Janet Davidson and Mayor Terence Kenyon left the meeting at 5.10pm and did not return.

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In Brief  The State Government announced their response to the Metropolitan Local Government Review Panel’s Final Report on 30 July 2013;  The State Government’s announcement centred on a reduction in the number of metropolitan Local Governments from 30 to 14 through amalgamations and boundary changes;  Affected Local Governments have been requested to submit proposals to the Local Government Advisory Board by 4 October 2013 to facilitate the structural reform process;  Legislative changes have been announced by the State Government including: i. Remove in perpetuity of the poll provisions in the metropolitan area; and, ii. Changes to the membership and operations of the Local Government Advisory Board;  The State Government responded to the bulk of the recommendations contained in the Metropolitan Local Government Review Panel’s Final Report, with the majority of the State Government’s positions consistent with WALGA’s advocacy; and,  WALGA is committed to providing tools, services and support to assist Local Governments during the implementation process.

Attachment Nil.

Relevance to Strategic / Business Plan  Providing strong representation for Local Government  Providing effective leadership for Local Government  Building a positive profile for Local Government  Enhancing the capacity of Local Government to deliver services

Policy Implications

The recommendation above is in line with the Association’s submissions in relation to the Metropolitan Local Government Review and existing Association policy positions.

Budgetary Implications

The WALGA services identified in this item are included in the Association’s 2013-14 budget.

Background The State Government announced their response to the Final Report of the Metropolitan Local Government Review on 30 July 2013. The Government’s response, which is discussed in detail in the comment section below, represents a significant milestone in the Metropolitan Local

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Government Review process that began with the formation of a three-member Panel in June 2011.

Since June 2011, the Metropolitan Local Government Review Panel released, in chronological order, an Issues Paper, their Draft Findings and their Final Report. More information about the Panel’s work and the State Government’s response is available from http://metroreview.dlg.wa.gov.au/.

WALGA developed comprehensive submissions to each of the Panel’s reports that are available from http://www.walga.asn.au/LGReform/MetropolitanLocalGovernmentReview.aspx.

WALGA’s Submissions to the Metropolitan Local Government Review Panel, and subsequently to the State Government, were prepared following thorough consultation and engagement with the Local Government sector. WALGA’s Submissions in relation to the Metropolitan Local Government Review were endorsed by State Council as follows:  Submission in Response to the Issues Paper – endorsed January 2012  Submission to the Draft Findings – endorsed July 2012  Submission in Relation to the Final Report – March 2013

Comment On 30 July 2013, the Premier, Hon Colin Barnett MLA, and the Minister for Local Government, Hon Tony Simpson MLA, announced the State Government’s response to the Metropolitan Local Government Review Panel’s final report.

The announcement centred on a plan to reduce the number of Local Governments in the Perth metropolitan region from 30 to 14.

The State Government’s Preferred Model

Details of the State Government’s preferred model are available from the Metropolitan Reform website – http://metroreview.dlg.wa.gov.au/. The information that follows is taken from the Department of Local Government and Communities’ Summary of Changes to Perth’s Local Government Boundaries, available from http://metroreform.dlg.wa.gov.au/Downloads/Summary_table_of_new_LG_with_key_factors.do cx

The State Government’s preferred model would see the amalgamation of the following Local Governments (most of which also involve minor boundary adjustments):  Armadale and Serpentine-Jarrahdale  Bassendean and Bayswater  Belmont and Kalamunda  Cambridge, Claremont, Cottesloe, Mosman Park, Nedlands, Peppermint Grove and Subiaco  Canning and Gosnells  Cockburn and Kwinana  East Fremantle, Fremantle and Melville  Mundaring and Swan, and  South Perth and Victoria Park.

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The State Government’s plan would also see the expansion of the City of Perth and modifications to the boundaries of the City of Stirling. The City of Vincent would be split between Perth and Stirling and the Cities of Joondalup, Rockingham and Wanneroo would be unchanged

The State Government’s proposed model is close to WALGA’s preferred model, contained in WALGA’s Submission to the State Government regarding the Panel’s Final Report:

WALGA supports a Governance Model for the Perth metropolitan region consisting of approximately 15-20 Local Governments, and will work towards achieving this objective, based on sustainability principles, with reference to Directions 2031, using existing Local Government boundaries as a starting point.

Process and Timelines

The State Government advised Local Governments that the new Local Governments will become operational on 1 July 2015.

The State Government informed the sector that the Local Government Advisory Board (LGAB) process will be used to facilitate boundary changes and amalgamations. The Minister advised that Local Governments have until 4 October 2013 to make a submission to the Local Government Advisory Board.

The Minister advised that only ‘minor’ adjustments to the Government’s proposed model would be considered. The Minister also advised that he would use his power under the Local Government Act 1995 to make proposals in line with the Government’s proposed model if necessary.

To enable proposals to the Local Government Advisory Board to be developed, each amalgamating group of Local Governments has been allocated $200,000.

Following the LGAB process, implementation of the Metropolitan Local Government Reform will be overseen by the Metropolitan Reform Implementation Committee (MetRIC) to be administered by the Department of Local Government and Communities (DLGC) and Chaired by the DLGC Director General. The MetRIC will also include representation from WALGA and the LGMA.

Each group of amalgamating Local Governments will establish a Local Implementation Committee and one Elected Member from each Local Implementation Committee will be invited by the Minister to join MetRIC.

Legislative Changes

To facilitate the Government’s proposed structural reforms, the Minister for Local Government and the Department of Local Government and Communities have flagged a number of legislative changes to be introduced into Parliament in the coming weeks.

Most significantly, the Government has indicated that legislation will be introduced to remove in perpetuity the application of the poll provisions contained in Schedule 2.1 of the Local Government Act 1995 in the metropolitan area. The Association’s position is to oppose any plan to remove or amend the poll provisions.

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The Government has also announced plans to change the membership and operations of the Local Government Advisory Board.

The Government’s Amendment Bill will add two new members to the five-member Advisory Board. Currently the Local Government Advisory Board comprises the following positions, all appointed by the Minister for Local Government:  An independent Chair  A Department of Local Government representative  Two Local Government Elected Member representatives, and  An LGMA representative

The Government’s argument for expanding the membership of the LGAB is to “widen representation”. The Government has not explained the inadequacy of the current LGAB membership structure, nor has the Government explained whether an objective criteria and transparent process will be used to appoint the two new members. It is also unclear what criteria, if any, the Government will use to appoint members to the new positions. Finally, the Government has given no indication that there will be any consultation with the Local Government sector regarding such a significant structural change to the membership of the Local Government Advisory Board.

The Government has flagged that it will change the operations of the Local Government Advisory Board to allow multiple proposals to be considered simultaneously.

Response to Robson Report Recommendations

Along with their proposed Governance Model for metropolitan Perth, the State Government also detailed their position in response to all 30 recommendations contained in the Metropolitan Local Government Review Panel Final Report.

The State Government agreed with most of the positions in WALGA’s comprehensive submission on the Panel’s Final Report.

There were six issues where the State Government took a different position to WALGA:

1 Rate WALGA argued for State Trading Entities, such as Equivalency LandCorp, to make rate equivalency payments to the Payments appropriate Local Government rather than to the State Government; the State Government rejected this position. 2 DAPs WALGA supported Recommendation 5, which suggested all planning powers should be re-instated to Local Government; the State Government rejected this position. 3 Forum of WALGA does not support the establishment of a Forum of Metropolitan Metropolitan Mayors; the State Government supports this Mayors recommendation. 4 Poll WALGA does not support amendment, removal or Provisions suspension of the poll provisions contained in Schedule 2.1 of the Local Government Act 1995; as discussed above, the Minister for Local Government intends to remove in perpetuity the poll provisions for the metropolitan area. 5 Review Of The WALGA supported a review of the property franchise; the Property State Government rejected this recommendation. Franchise

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6 Local WALGA supported the establishment of a Local Government Government Commission; the State Government rejected Commission this recommendation.

There are some other advocacy issues that WALGA will continue to pursue stemming from the Government’s response to the Metropolitan Local Government Review:

Exemptions for The State Government states the issues relating to rate Charitable exemptions for charitable purposes will be “considered in a Purposes further stage of reform”; WALGA and the Local Government sector would like to see this issue resolved as soon as possible. State Agreement The State Government contends in their response to the Acts Panel’s Final Report that “issues concerning State Agreements have already been addressed”. Rating issues for new State Agreements have been addressed; however, only for a trial period for three years commencing on 1 July 2012. Furthermore, existing State Agreements continue to provide rate exemptions and Local Governments can only rate projects covered by existing Agreements if ‘both parties agree to adopt the policy’. Alternatively, the State Government has also stated that ‘projects that operate under existing State Agreements and are currently exempt from rates may apply the policy as part of their respective Agreement Variation processes with the Department of State Development during the trial period’. Reporting of The Metropolitan Local Government Review Panel Payments to recommended that payments to Elected Members should be Elected Members reported on a regular basis. WALGA supported this recommendation on the condition that payments to Elected Members are only required to be reported in the Local Government’s Annual Report. The State Government supported the Panel’s recommendation and stated “Public reporting of payments to individual Councillors will be required through changes being progressed by the Department of Local Government and Communities.” No detail has been provided regarding the nature of the changes being progressed by the Department of Local Government and Communities.

WALGA will also be seeking to ensure the State Government honour their commitment to renew the Partnership Agreement between the State Government and the Local Government sector, as outlined in the State Government’s response to the Panel’s recommendations.

WALGA will also continue to advocate for the State Government to honour their commitment to fund the Metropolitan Local Government Reform implementation. No money, beyond the $200,000 per group discussed above, was included in the State Budget for Metropolitan Local Government Reform.

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WALGA Support Services and Tools

WALGA is committed to providing assistance, services and tools to Local Governments during the Metropolitan Local Government Reform implementation process.

Specifically, WALGA:  Is developing a Local Government Reform Implementation Toolkit, which will contain guidance information and templates to assist Local Governments during the transition process;  Offers human resources and industrial relations services including assistance with organisational structures, industrial instruments and redundancies and redeployments;  Will, if requested, assist Local Implementation Committees by providing a case manager to attend each meeting, advocacy on behalf of committees, knowledge sharing and facilitation of workshops;  Will facilitate connections between Local Governments and consultants, including organisations specialising in merging business systems;  Offers coaching assistance to Elected Members and CEOs; and,  Provides counselling services through LGIS.

WALGA has written to all metropolitan Mayors, Presidents and Chief Executive Officers offering support and assistance during the implementation of the Metropolitan Local Government Review.

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5.2 Country Local Government Fund (05-055-03-0005 JB) By Jo Burges, Regional Cooperation Manager

Moved: Mayor R Yuryevich Seconded: President Cr E O’Connell

1. That WALGA advocate to the State Government for the retention of the Country Local Government Fund at a level commensurate with its original intent of addressing the country Local Government infrastructure backlog. 2. WALGA advocate to the Minister for Regional Development to honour the Financial Assistance Agreements regarding the 2010-11 funding entered into by country Local Governments thus ensuring their eligibility to the 2012-13 individual allocation of the CLGF

RESOLUTION 244.4/2013 CARRIED UNANIMOUSLY

In Brief

 The State Budget released on 8 August 2013 reduced the funds allocated to the Country Local Government Fund (CLGF) with 2015-16 and 2016-17 identifying $9m in each financial period for planning purposes only;  From 2013-14 Local Governments will be able to access Royalties for Regions funding through existing and additional programs with a focus on strategic regional projects;  The Association requests the State Government to retain the Country Local Government Fund (CLGF) at a level commensurate with its original intent of addressing the country Local Government infrastructure backlog.

Attachment

Nil.

Relevance to Strategic / Business Plan

 Providing strong representation for Local Government  Providing effective leadership for Local Government  Building a positive profile for Local Government  Enhancing the capacity of Local Government to deliver services

Policy Implications

Nil

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Budgetary Implications

Nil

Background

The Country Local Government Fund (CLGF), launched on 16 December 2008, has provided country Local Governments with additional money for the purpose of infrastructure provision and renewal. This fund represented the most significant investment into country Local Government infrastructure in this current era. This welcomed fund changed the landscape of regional Western Australian communities through the provision of renewed and new infrastructure.

When launched, the fund was promoted as $400million over four years with $100million being allocated directly to individual country Local Governments in the first year; 65% to individual and 35% to regional groupings of country local Governments in the second year; 50% to individual and 50% to regional groupings of country Local Governments in the third year. $2.5million of the CLGF per year is retained by the Department for Local Government for country Local Government capacity building with a particular focus on Asset Management.

Several economic factors including the Global Financial Crisis and lower than expected royalties resulted in a significantly reduced allocation in the second year of the CLGF; $35,000 per country Local Government to appropriately plan for infrastructure expenditure via Forward Capital Works Plans was allocated in 2009/10.

The State Government advised on 17 December 2009 that “Changes in the global economy and the strong Australian dollar have impacted significantly on the State’s revenue from mining and petroleum royalties affecting the State Government’s Royalties for Regions program for the remainder of the 2009-10 financial year” and further “The major deferral in 2009-10 is $90million to the Country Local Government Fund Stage 2, which was scheduled to be distributed in May 2010. There will be an allocation of $10million this year to assist councils with planning their infrastructure needs with the remainder being distributed from July 1, 2010 for expenditure on capital works.”

This disruption to the perceived ‘as of right’ allocation to country Local Governments prompted the Association on behalf of its members to seek clarification from the State Government on surety of the ongoing flow of funds to the sector. The State Government was unable to provide this surety, as the CLGF was at the whim of the economic factors influencing royalties income at any given time. The Association requested to be consulted in the drafting of future guidelines for the CLGF resulting in senior officers assisting where possible within the constraints the fund was bound by.

Correspondence received by all country Local Governments on 2 July 2010 stated, “With the passage of the Royalties for Regions Act 2009 there is now greater certainty in the total amount allocated …” and, “The 2010-11 budget estimates show that the proportion of the total CLGF amount allocated to Local Governments for the years 2011-12 and 2012-13 is 50% for individual allocations and 50% for regional groups of country Local Governments. In the 2013- 14 year, the CLGF for Local Governments is 100% to regional groups of country Local Governments.”

Although this statement reiterated the original intent of the fund, the State Government’s changes to the arrangements in 2009-10 marked an intrinsic shift to the original intent. The

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sector’s experience of the fund clearly signified its value to the community and need to address the infrastructure backlog locally prior to, or at least in parallel with, regional projects.

Following this announcement the Association received considerable concern, raised through Country Zones, in regard to the proposed 100% regional allocation of the CLGF. Specifically that funding direct to Local Governments must be ongoing, with projects arising from local decision making processes. The Association undertook significant consultation with country Local Governments to achieve an agreed position to present to the State Government for consideration, resulting in the following motion that was carried at the 18 February 2011 State Council meeting thus becoming the Association position.

That: 1. WALGA advocates to the State Government, including the Minister for Regional Development and Lands, for a commitment to the retention of the individual local government component of the Country Local Government Fund;

2. A minimum of 50% of the total pool of the Country Local Government Fund be allocated to individual Local Governments. In areas where regional projects are determined by the local governments to be of a higher priority, timely and meet strategic objectives, then up to 100% of the Country Local Government Fund may be allocated to regional projects; and

3. WALGA pursue discussions with the Department of Regional Development and Lands ensuring the development of policy guaranteeing a level of funding under the Country Local Government Fund, irrespective of the royalties income received by the State Government.

On 22 August 2011, the Regional Development Minister, Brendon Grylls announced a review into the CLGF by the Western Australian Regional Development Trust (WARDT). The WARDT was asked to advise the Minister on the formula used to allocate the funding and the split of funding between individual councils and regional groupings.

The Association sought input from country Local Governments to guide a comprehensive sector submission to the Review. The submission included the following recommendations:

1. That the Country Local Government Fund continue as a grant program direct to Local Government

2. That the Country Local Government Fund continues to focus on infrastructure and the infrastructure backlog with capacity building as a secondary objective

3. That the establishment of a reserve fund which could be used to supplement the Country Local Government Fund in years in which State Royalty receipts are lower than forecast be considered to enable certainty of funding

4. That decision-making regarding the Country Local Government Fund be undertaken by Local Governments with Regional Development Commissions assisting with facilitation if required

5. A minimum of 50 percent of the total pool of the Country Local Government Fund be allocated to individual Local Governments. In areas where regional projects are determined by the Local Governments to be of a higher priority, timely and meet strategic objectives,

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then up to 100 percent of the Country Local Government Fund may be allocated to regional projects.

6. That the formula used to determine funding allocations for the Country Local Government Fund match the purpose of the Fund

7. That the capacity building funding associated with voluntary amalgamations be broadened to be available to all Local Governments

8. That clear funding guidelines for the Country Local Government Fund be released well in advance of the year of funding

9. That the Country Local Government Fund acquittal process be simplified and that the process utilised by the Roads to Recovery program be investigated as a potential model

Recommendation 9 of the Western Australian Regional Development Trust (WARDT) Report – CLGF Review is strongly supported in the Associations submission, and reads:- The Trust recommends: 1. That the CLGF continue to have an individual CLG component and a Group CLG sub-regional and regional component; and, 2. Recommends against the current intention of moving the CLGF to 100% Group CLG funding in 2013-14.

The Association supported the Trust’s conclusion that it is inappropriate for the CLGF to be allocated entirely to groups of Local Governments. Moving away from an arbitrary percentage allocation to a focus on outcomes is supported.

On 8 August 2013 the 2013 – 14 State Budget was released and was the result of some ‘tough but necessary decisions’ according to the State Treasurer, Troy Buswell.

One of those decisions was to cease any new funding to the Country Local Government Fund (CLGF).

The State Government has set aside funding over the next two years for those local governments eligible for the 2012-2013 funding round.

2012-13 2013-14 2014-15 2015-16 2016-17 $m $m $m $m $m CLGF 76.4 34.5 44.6 9.0 9.0

Changes in Government direction require that 2013-14 Royalties for Regions will now focus on strategic regional projects. Access to funding will be through existing and additional programs including:-  Regional Strategic Projects ($40M); and  Existing and new Regional Revitalisation Investment Plans

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It should be noted that the $9m allocated in 2015-16 and 2016-17 is only for planning purposes and is represented by:-

Regional Centres Development Plan $5m Capacity Building – Regional Governance Services and Asset Management Tools (DLGC) $3m Administration of CLGF (DRD) $1m $9m

Comment

The Country Local Government Fund has provided over $354 million since inception in 2008. This money has funded over 1500 individual Local Government projects and in excess of 100 regional group projects.

Given the changes to State Government direction as outlined in the Budget, particularly with regard to the CLGF and that Royalties for Regions funding will now focus on strategic regional projects, it is imperative that the sector via the Association remain steadfast in its commitment and regard for the CLGF.

The considerable and comprehensive work undertaken in the Western Australian Regional Development Trust (WARDT) Report – CLGF Review, cannot be dismissed and the recommendations agreed upon by the Association process require strong advocacy by the sector and its position on the CLGF restated to the State Government.

Country Local Governments have consistently rallied together to reiterate the need to address local infrastructure backlog in the first instance and strategically plan for significant regional infrastructure requirements to support and compliment facilities and services situated within their communities of interest.

The majority of country Local Governments have demonstrated over time their capacity to plan for, expend, acquit and report on the CLGF. Project planning in particular, now demonstrates alignment to individual Local Government Strategic Community Plans, state priorities through both Development Commissions and those of the State Planning Strategy and in many cases to Commonwealth priorities via Regional Development Australia Regional Plans. Unfortunately DRD have advised that some Local Governments have lagged behind in their reporting and acquittals which has negatively affected their eligibility for 2012-13 funds.

The Association’s current position of advocating for a 50% / 50% split in the allocation of the CLGF to individual and regional groupings of Councils needs to be reaffirmed. The individual Local Government allocation needs to remains particularly where valid community outcomes can be demonstrated.

Advice from the Department of Regional Development is that the fund has been scaled back and that funds allocated in 2013-14 and 2014-15 are provided to finalise projects. This period of time will allow country Local Governments to demonstrate their ability to successfully expend, report and acquit their funds in readiness for a more buoyant economic period in 2015-16.

The Association will continue to advocate as directed by country Local Governments as long as the policy position remains current and meets the sector’s needs.

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5.3 2013 Annual General Meeting Minutes (01-003-02-0003 WS) By Tim Lane, Manager Strategy and Reform

Moved: Mayor R Yuryevich Seconded: Cr D Thompson

That Annual General Meeting Motions:

1. 5.6, 5.7 and 5.9 be endorsed and forwarded to the relevant WALGA business unit for action; 2. 5.1B, 5.3, 5.4, 5.5, 5.8, 5.10 and 5.11 be noted as in accordance with Association Policy; and, 3. 5.1 and 5.2 that amend the WALGA Constitution be noted.

RESOLUTION 245.4/2013 CARRIED UNANIMOULSY

In Brief  The 2013 WALGA Annual General Meeting was held on 7 August 2013  This report details all carried motions which are referred to State Council for consideration

Attachment Minutes of the 7 August 2013 WALGA Annual General Meeting were distributed following the meeting to all Local Governments.

Policy Implications Adoption of this recommendation determines the action to be taken on the resolutions carried at the Annual General Meeting held on 7 August 2013 and will contribute to the Association’s policy base.

Budgetary Implications Nil.

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Background Resolutions from the 2013 Annual General Meeting are referred to State Council for consideration, noting that Sub-Clauses 7 and 8 of Clause 22 of the Western Australian Local Government Association Constitution states:

“(7) Where the State Council considers that a direction or decision from an Annual General Meeting has been made without information of a material nature or in circumstances which have materially altered and such direction or decision is not in the best interests of the Association, the State Council may decline to follow that direction or decision and, in that event, the Chief Executive Officer by notice shall advise the Ordinary Members of the decision of the State Council and the reasons for that decision.

(8) Notwithstanding the provisions of sub-clause (7), the State Council is required to give consideration to any direction or decision made at an Annual General Meeting in its discharge of responsibilities and functions.”

Comment The resolutions carried at the AGM are listed below, followed by officer comments regarding consistency with existing Association positions and any recommended variance from the AGM decision.

5.1B MATTER OF SPECIAL URGENT BUSINESS: Local Government Metropolitan Reform

That WALGA condemns the removal of the “poll provisions” from Schedule 2.1 of the Local Government Act 1995 and the forced amalgamations of Local Government Councils.

Secretariat Comment

This motion is in accordance with existing Association policy.

5.1 Association Constitution – Impacts of Amalgamations

1. That the Constitution be amended as follows: a. In clause 2: Insert a new definition of Commissioner –

“Commissioner means a Commissioner appointed to a Local Government under sections 2.6(4) or 2.36A(3) of the Local Government Act 1995.”

b. In clause 2 amend the definition of Councillor by inserting after the words “elected by electors” – “and includes a Commissioner appointed under section 2.6(4) or section 2.36A(3) of the Local Government Act 1995.”

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c. Amend the definition of Member by inserting after the words “sub-clause 14(2)” – “; or  A new Council created pursuant to a merger or amalgamation of existing Councils that were Ordinary Members of the Association prior to the merger or amalgamation.”

d. Amend the definition of Ordinary Member by inserting after “provisions of this Constitution” - “and includes a new Council created pursuant to a merger or amalgamation of existing Councils that were Ordinary Members of the Association prior to the merger or amalgamation.”

e. In clause 5 insert a new clause (3) as follows – “Ordinary Membership shall be immediately conferred upon any new Council created by the merger of existing Councils that were Ordinary Members of the Association prior to the merger, provided that all membership fees and subscriptions owed to the Association up to the date of merger by the predecessor Councils of that new Council have been paid.” All subsequent subclauses are renumbered.

f. In clause 14 paragraph (4a)(b) delete the words “who elected or appointed the person as its delegate.”

g. Clause 20(b) delete the words “who elected or appointed the person as its delegate.”

Secretariat Comment

Constitutional amendments were endorsed in accordance with Clause 29 of the Association’s Constitution and actioned accordingly.

5.2 Proposed Amendments to the Western Australian Local Government Association Constitution – State Council Commencement Date

1. That the Constitution be amended as follows: In clause 9, amend the commencement and conclusion date for State Councillors’ term of office by amending sub-clause (3) to read: “Representatives and deputy representatives to the State Council shall be elected by Zones of the metropolitan and country constituencies from amongst the delegates to the Zones for a term commencing on the day of the first Ordinary Meeting of State Council immediately following the biennial Local Government elections and concluding on the day before the first Ordinary Meeting of State Council of the following biennial Local Government elections.”

2. That a motion be submitted to the 2013 Annual General Meeting seeking to amend the Constitution as per State Council’s resolution.

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3. If this proposed amendment is successful at the August 2013 Annual General Meeting, the current term of State Council be reduced to end on 3 December 2013.

Secretariat Comment

Constitutional amendments were endorsed in accordance with Clause 29 of the Association’s Constitution and actioned accordingly.

5.3 Election of Shire President or Mayor

That the Western Australian Local Government Association lobby the State Government not to amend the Local Government Act 1995 with regard to election of Shire Presidents or Mayors

Secretariat Comment

This motion is in accordance with existing Association policy. Furthermore, in their response to the Metropolitan Local Government Review Panel’s Final Report, the State Government rejected the recommendation for all Mayors and Presidents to be elected by the community.

5.4 Proposed Local Government Act Amendment – Exemption from Liability

That WALGA prepare a position paper to support the lobbying of the Minister of Local Government to amend the Local Government Act 1995 to allow Local Governments an exemption from liability on flood liable land, land subject to bushfire and land in coastal zones where that Council has acted in good faith in relation to its decision on the land in question.

Secretariat Comment

The concerns raised in this motion are in accordance with Association policy and advocacy is ongoing with the Department of Planning.

5.5 Impacts of Climate Change

That WALGA seek a more committed and coordinated approach through the Western Australian State Government, Western Australian Local Government Association and Western Australian Local Governments in addressing the impacts of Climate Change on coastal infrastructure management, development control, land use planning and other potentially affected functions and activities.

Secretariat Comment

This motion is in accordance with Association policy.

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5.6 Proposed Local Government Amendment – Council Controlled Organisations

That the proposed amendments to the Local Government Act 1995 in relation to Council Controlled Organisations prepared by WALGA in October 2011 be endorsed and resubmitted to the State for consideration.

Secretariat Comment

This motion is in accordance with Association policy and will be referred to the Governance and Corporate Services Unit for action.

5.7 Effects of Structural Reform On WALGA

That State Council advise the membership of WALGA if and how State Council has considered the possible impacts on the organisation as a result of the amalgamation of Local Governments on the ability of WALGA to maintain the purchasing, lobbying power and what are currently well resourced services supplied at better than competitive rates to the membership if new larger Local Governments prefer to manage their affairs in- house separate from WALGA.

Secretariat Comment

It is recommended that this motion be endorsed and consequently referred to the Governance and Corporate Services Unit for action.

5.8 Eradication of Cotton Bush

That WALGA: 1. Raises with the Minister for Agriculture and all local Members of Parliament Local Government urgent concerns in relation to the infestation of Cotton Bush in the south west and the lack of attention to this and other weed and pest control by DAFWA. 2. Seeks a commitment from the State Government to adequately resource DAFWA to enable it to address weed and pest control in the state. 3. Advises the state government of the ongoing concerns with the lack of management of pest and weed control of other government agencies on their controlled lands.

Secretariat Comment

The concerns raised in this motion are in accordance with Association policy and advocacy is ongoing.

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5.9 Political Advertising

That WALGA prepares a position paper to lobby the relevant State Government ministers to ensure that all Local Governments have certainty with respect to their local laws and local planning requirements in relation to political signage and the protection of the amenity of local areas, without unduly restricting the principle of freedom of political expression.

Secretariat Comment

It is recommended that this motion be endorsed and actioned as the Association is currently formulating a political signage guideline for Local Governments that meets legal and public amenity issues.

5.10 Rate Exemptions for Charitable Purposes

That the Western Australian Local Government Association continues to lobby the State and Federal governments for: 1. The rate exemption status for Not for Profit organisations to be removed; and 2. If the rate exemption status is not removed that all Local Governments be compensated for loss of revenue associated with the area of land used for independent living units on estates operated by registered charities and religious bodies, and that the compensation be an annual direct payment to the Local Governments on the production of an invoice to the State Revenue Department and Federal Treasury.”

Secretariat Comment

This motion is in accordance with existing Association policy.

5.11 Weed Management and Administration of the Biodiversity and Agriculture Management Act 2007

That WALGA lobby the Minister for Agriculture and Director General of the Department of Agriculture and Food to ensure that the Department accepts its responsibility for the management of invasive species classified under the Biosecurity and Agriculture Management Act 2007. This should be through either direct action or funding to establish and maintain Recognised Biosecurity Groups to directly manage this increasingly important issue.

Secretariat Comment

The concerns raised in this motion are in accordance with Association policy and advocacy is ongoing.

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5.4 Building Act 2011 – Fees, charges and administrative requirements (05- 015-02-0005 VJ) By Vanessa Jackson, Policy Manager Planning Reform and Improvement

Moved: Mayor D Ennis Seconded: Cr C Mitchell

That the Association:

1. Advises the Minister for Commerce and the Minister for Local Government of the

effects that the new legislative requirements contained in the Building Act 2011 are having on the operation of Local Government building departments, including the significant drop in revenue and the additional red tape burden being encountered; 2. Advocates for an immediate review of the fee structure contained in the Building Act & Regulations, to be predicated on cost recovery principles as they apply to Local Governments; and 3. Promotes Local Government private certification units to the development industry as an alternative to the independent private certification process.

RESOLUTION 246.4/2013 CARRIED UNANIMOUSLY

In Brief  The Building Act 2011 has been implemented for one full financial year and examples of the new Act on the income and operation of Local Government building departments has been obtained.  Generally there has been between a 30 – 40% drop in revenue at a number of Local Governments, with this reduction in revenue now being met by general revenue to support the operation of the building department.  The new Act has resulted in an increase in administrative requirements and when combined with the tight timelines for issuing building permits, there is significant pressure on officers and on the performance of building departments.

Attachment Specific examples from the Local Government sector – Attachment 1 Link to the fee modeling rationale for the Building Commission – Attachment 2 http://walga.asn.au/MemberResources/StateCouncilDocuments/AgendasampMinutes/201 3.aspx

Relevance to Strategic / Business Plan  Providing strong representation for Local Government  Providing effective leadership for Local Government

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 Building a positive profile for Local Government  Enhancing the capacity of Local Government to deliver services

Policy Implications

The Association endorsed the following positions at its meeting on the 5 December 2012 (140.6/2012 ): -

1. the legal advice provided by McLeod’s Barristers and Solicitors on the Building Act 2011 be noted; and

2. To improve the operation of the Building Act 2011 and ensure the public interest is protected, the Association: -

(a) Supports the retention of Local Government as the ‘permit authority’ and therefore opposes any move towards full private certification in WA; (b) Supports and will assist in the promotion of Local Governments establishing certification units as an alternative to independent private certification services; (c) Advocate that mandatory inspections should occur for all classes of buildings; (d) Requests the State Government to prepare regulations for enforcement processes as a matter of priority; (e) Advocates that the State Government establish an auditing regime to ensure that the Act is effectively administered by both Permit Authorities and independent certifiers; (f) Requests that the State Government advises how the additional funds generated by the new Building Act will be utilised and when the auditing process will be established and operated by the Building Commission; (g) Clearly articulates to the building industry and State Government the benefits of lodging a complete application, as well as the range of planning, health and engineering requirements that may be necessary as part of the building permit in order to comply with other legislative instruments; and (h) Advocates for further improvements to the Building Act, Regulations and Manuals/Forms, as advised by the sector

Budgetary Implications Nil.

Background In the Minister for Commerce’s second reading of the Building Act 2011 in Parliament on the 10 November 2010, the following comments were made: -

The Building Bill, along with the three related building services bills, delivers the most significant reform to building regulation in Western Australia in 50 years……Efficient processes are critical, and delays in approvals must be eliminated.

The Building Act 2011 has made the building approval process more complex (20 variations of approach compared to four) with 8 different application forms, 3 certificates, 4 notices and 4 permits as part of the standard documentation provided by the Act.

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The processing times required by the new legislation are short and enforceable. A Local Government must process certified applications within 10 working days and uncertified proposals within 25 days. Failure to meet these targets exposes the Local Government to a right provided to the applicant to request a refund of their fees.

Comment The new Building Act has failed in practice to provide a more efficient process for Local Government, and has increased the performance expectations compelling Local Government to provide fast assessments.

The Building Act originally promoted the concept that the applicant needs to be ready to build, which required them to have all their relevant documentation for an application to be accepted. Since the Act commenced this requirement has been watered down and the onus is now on the Permit Authority, with short time frames and with only one opportunity to request further information. This lack of consistency of applications was a problem under the old legislation even though there were more prescriptive requirements.

Fees structure

The administrative burden has also increased and the new Act has an extensive and complex fee structure (http://www.slp.wa.gov.au/legislation/statutes.nsf/main_mrtitle_12901_homepage.html).

An example of the pre and post Building Act fees for the main types of building activity is provided in the following table:

Pre Act Estimated value – Class 1 & 10 Building x 0.35% Building license application fee – min $85 License application x 0.2% BCITF (Training) levy

+ the Builders Registration Board levy (a fixed fee - in 2011 it was $41.50) Pre Act Estimated value – Class 2-9 Building x 0.2% Building license application fee – min $85 License application x 0.2% BCITF (Training) levy

+ the Builders Registration Board levy (a fixed fee - in 2011 it was $41.50) Post Act Estimated value - Uncertified x 0.32% Permit fee (to local government) – Min $90 applications x 0.09% Building Services Levy (to Building Commission) – Min $40.50 x 0.2% Construction Training Fund levy Post Act Estimated Value - Certified Applications X 0.19% Permit fee (to local government) – Min $90 x 0.09% Building Services Levy (to Building Commission) – Min $40.50 x 0.2% Construction Training Fund levy

To explain what this actually means for a building application, some examples are provided to highlight the changes in the fee structure before and after the introduction of the Act: -

$175 Council Permit Fee (min $85.00) Pre Act - $50,000 $41.50 Builders Registration Board (flat fee $41.50) extension to dwelling $100 BCITF Levy (where contract value >$20,000) $316.50 Total Post Act - $50,00 $160 Council Permit Fee (min $90.00) - 0.32% extension to dwelling $45 Building Services Levy (min $40.50) $100 CTF Levy (where contract value >$20,000)

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Uncertified $305 Total

Post Act - $50,00 $95 Council Permit Fee (min $90.00) - 0.19% extension to dwelling $45 Building Services Levy (min $40.50) $100 CTF Levy (where contract value >$20,000) Certified $240 Total

$1,050 Council Permit Fee (min $85.00) Pre Act - $300,000 $41.50 Builders Registration Board (flat fee $41.50) dwelling $600 BCITF Levy (where contract value >$20,000) $1,691.50 Total Post Act - $300,00 $960 Council Permit Fee (min $90.00) - 0.32% dwelling $270 Building Services Levy (min $40.50) $600 CTF Levy (where contract value >$20,000) Uncertified $1,830 Total Post Act - $300,00 $570 Council Permit Fee (min $90.00) - 0.19% dwelling $270 Building Services Levy (min $40.50) $600 CTF Levy (where contract value >$20,000) Certified $1,440 Total

$4,000 Council Permit Fee (min $90.00) Pre Act - $2million $41.50 Builders Registration Board (flat fee $41.50)

$4,000 BCITF Levy (where contract value >$20,000) Warehouse $8,041.50 Total Post Act - $2 million $1,800 Council Permit Fee (min $90.00) - 0.09% $1,800 Building Services Levy (min $40.50) Warehouse Certified $4,000 CTF Levy (where contract value >$20,000) $7,600 Total

NB: These examples do not include the private certification fee if the applicant uses an independent certifier within the ‘Certified’ application process, these are just the fees submitted to the Permit Authority.

The most significant increase in the fees and therefore the cost to the applicant, results from the increase in the Building Services Levy, as the flat fee of $41.50 has been amended to a new percentage fee of 0.09%. The Building Services Levy fee funds the operation of the Building Commission. In the first two examples, where a significant amount of building activity occurs, there is a drop in the revenue generated by a local government, without any corresponding change to the administration, assessment and enforcement of the building permit being issued.

To assist in the preparation of this report, specific experiences from the local government sector have been obtained, to highlight how the Act has been implemented over the last financial year and the impact of the new legislative requirements on the operation of the building departments (Attachment 1). A summary of the main issues is provided in this report, primarily focusing on the fee structures and the increase in administrative requirements of the Act.

Cost recovery principles In recent decades there has been a general trend for Commonwealth and State Governments to make greater use of cost recovery principles, which can result in fairer and more productive outcomes. Unfortunately the Local Government sector is often constrained by their ability to implement similar reforms. Legislative restrictions often set fees at a low level, so the cost of these services/goods must be met from general Local Government revenue. These restrictions can also result in inefficient outcomes when Local Government is prevented from setting fees and charges at cost recovery levels. This compromises the ability of Local Governments to raise their own revenue and increases the sector’s reliance on funding from the State and Commonwealth Governments.

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The following table shows the increase in the Perth CPI and the WA Wage Price Index (WPI) since the September quarter 2007 (the first quarter for the 2007-08 financial year): Quarter Perth CPI WA WPI (index value) (index value) September quarter 2007 88.6 93.4 March quarter 2013 102.4 117.1 Change from September 2007 to March 2013 15.6% 25.4%

In regard to the Building Permit application fee, the change over this period has only been an increase of the minimum fee $85 to $90 (5.88%), therefore, there is already a significant reduction in the revenue that could have been generated by the Building Fees, compared to the above 15.6% increase in Perth CPI and 25.4% increase in the WA WPI index over the last 6 years. Even if taking a conservative approach and assume that the quantity of work stayed the same throughout this period, the increase in operational costs through increases to wages has not been achieved by the 5.88% increase in fees. As will be outlined in this report, the quantity of work particularly the additional administrative requirements has increased, therefore the fee structure is even further behind the total costs required in order to maintain a building departments operations.

As for the current minimum $90 fee, for smaller ‘estimated values of building work’ this is quite inconsistent with the percentage charges that are applied for more expensive work.

Current charges: Fee for $10,000 estimated Fee for $200,000 estimated value value Certified Class 2 to 9 $90 $180 Certified Class 1 or $90 $380 10 Uncertified $90 $640 application

So for a $10,000 estimated value the fee is $90 for every application type. For a $200,000 estimated value, an uncertified application costs about 3.5 times what a Certified Class 2 to 9 application costs, which reflects the assessment requirements by the local government to issue both the Certificate of Design Compliance and the Building Permit. If the minimum fee was $190 for Certified Class 1 or 10 and $320 for Uncertified Class 1 or 10 applications, this would maintain a consistent relativity between the fees, no matter what the estimated value of the development.

Building Commission have previously stated pre-Building Act that “the Building Commission is of the view that with some uncertainty as to the exact costs facing Local Governments it is better to have conservative fees and have those fees reviewed once the actual costs to the Local Governments become more known post the Building Act.” The fee modeling presented in August 2011 indicated that for many of the proposed fees there was ‘no current equivalent’, therefore, the fees were not based on actual costs to deliver the proposed service (see fee modeling information – Attachment 2) http://walga.asn.au/MemberResources/StateCouncilDocuments/AgendasampMinutes/201 3.aspx

Advice from Local Government has provided a comparison of the amount of fees generated in the last financial year with to the revenue of the previous financial year. Generally, there has been between a 30 – 40% drop in revenue at a number of Local Governments, with this

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reduction in revenue now being met by general revenue to pay for the financial operation of the building department. Some of the reduction in revenue has been through the loss of Private Certified work for Class 2- 9 applications, which as well as the financial loss has also removed the variety of work being assessed by a Local Government Building Surveyor, with more Class 1 and 10 applications being submitted for certifying by local government officers (single dwellings, outbuildings, patios etc).

The establishment of private certification units within local government can assist in increasing revenue and providing more challenging technical assessments to assist in attracting and retaining staff, ensuring that the skill set of a local government building surveyor is not lost. It is considered appropriate that the certification units that are being established by the sector are promoted to the building industry and the Building Commission as a comparable option to obtain building certification.

With building departments under pressure to issue the building permits within the tight timeframes, there may be fewer opportunities for inspection and enforcement processes to be undertaken, which does not met the overall objective of the Act to provide a comprehensive system of building controls in WA. The Building Commission had advised that they are in the process of developing more guidance on the enforcement and inspection requirements of the Act and the role for Local Government. If the changes to the fees and charges have already impacted on the revenue generated, then any additional legislated requirements for inspections and enforcement by the local government sector must include appropriate fees or infringements to ensure that ratepayers are not subsidising building activities. It is not fair for ratepayers to be subsidising developments that are for the personal gain or enjoyment of the applicant, it needs to be closer to “user pays”.

It is therefore imperative that the fees and charges be reviewed as a matter of priority, as the actual operational costs for Local Government to undertake the legislated functions of the Building Act are not reflected in the current fee structure.

The Building Commission’s FAQ on the Act states that the Building Permit Fee ‘covers the permit authority’s costs in assessing, granting and enforcing permits’ therefore, a review of the fees should investigate the actual administration, assessment and enforcement costs for a local government. The fees suggested in this report are only that, suggestions for some of the fees. A full review of the fees should consider all of the categories, including those that are a flat fee, as the services provided are well above the income obtained from the prescribed fee. For example, a demolition fee should be calculated on the contract price/value of removal, as the $100 flat fee would not even cover a Building Surveyor discussing the legislation and various requirements with an applicant at the front counter, let alone the administrative and assessment functions of issuing the demolition permit.

A full review should therefore be undertaken, in consultation with local government members to ensure a cost recovery model is obtained.

Increase in administrative functions Examples of the additional administrative requirements and costs that have occurred under the new legislation have been provided from the sector: -  Explaining the new system to the Building Industry and local ratepayers since the Act was implemented;  Setting up of IT systems to accommodate the new forms and fee structures;  Time consuming to fill in the Certificate of Design Compliance details and the various signatures/details on the permits and forms;

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 The average Uncertified Application takes approximately 5-6 hours of pure administration time to process, this is purely the time input of administration staff and does not include the time of the Building Surveyor or the cost of materials such as paper and inks for all the copying and printing that has to be done;  Changes to internal operational processes particularly the referral processes to other departments;  Requirements for checking the documentation has not diminished, for example, checking: - - whether or not the proposal will adversely affect or encroach onto other land - whether the proposal is compliant or complying with other written law, ie Sewerage apparatus, Planning Approval, Aquatic facilities, Heritage, Detailed Area Plans etc. - the content on the forms and the information submitted with the application form - The technical certificates, insurance, and Building Services Levy details must be checked and verified by an officer with the required experience and qualifications to do so;  Data Collation requests are not coordinated, with up to five different reporting requests being sought on building statistics;  The reporting of statistics and the reporting of levies is all done at the expense of the local government and adds to the administration staff workload;  Seeking legal advice to clarify certain aspects of the operation of the Act, as the Building Commission regularly state that a local government should seek their own legal advice as the Commission will not provide interpretation of the Act;  When issuing a Permit and Certificate of Design Compliance, instead of issuing only to the builder a copy must also be sent to the owner, doubling paper use and mailing costs;  For class 2-9 applications - The builder must obtain a Certificate of Construction Compliance prior to an Occupancy Permit. In our situation, the builder generally opts for the Local Government to do this; otherwise they have to fly the private building surveyor to the site. We must then issue an Occupancy Permit (one to builder, one to owner), and charge two sets of fees for work carried out. Although this may provide extra work, but additional paperwork, it ultimately places extra cost on the builder and the owner;  The strata process was just one form before (Form 7). Now it’s a Certificate of Building Compliance (original and copy) needed prior to issuing the Building Approval Certificate Strata or Occupancy Permit strata (original and copy plus one to owner). In both scenarios it is an extra step and cost to Local Government to complete and issue the new paperwork.  Building Surveyors at many local governments are still required to check Building Applications for dwellings and minor works to ensure compliance with the RCodes but no recompense for doing so. Only where variations to the Rcodes are revealed, can fees be charged or the builder may lodge amended plans if they so choose, thereby cost recovery is never obtained.

Role of Local Government There have been suggestions that the private industry is trying to build a case to justify removing Local Government from the building approval process, to implement a system that is aligned closer to the State of Victoria’s approval system. Over the last 12 months, the issuing of building permit approvals has steadily risen, as shown in the graph below for dwelling units, therefore, the suggestions that the new Building Act is delivering approvals, is totally unfounded.

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Local Government provides the independent quality control that is needed within the building development process, to ensure that building standards are met and maintained. It also ensures that the local policies and requirements are met through the process of issuing the Building Permit.

The Association will continue to advocate that Local Government is retained as the permit authority to keep the separation between the technical assessment and the final permit issuing. This reduces the conflict of interests for private building certifiers and maintains community expectations that an independent and impartial authority will be issuing the approval. Local Government Permit Authorities have also advised that they regularly identify issues with Certified Applications.

Further actions

It is therefore recommended that the Association raises the issue of fees and charges with the Minister for Commerce and Minister for Local Government, to highlight the significant drop in revenue for Local Governments and the additional red tape burden being encountered by Local Governments due to the new legislative requirements.

It is further suggested that the Minister initiate a review of the Building Act fees, as the actual operational costs for Local Government to undertake the legislated functions of the Building Act are not reflected in the current fee structure and thus these activities are being subsidized by the community at large.

Finally, the Association should actively promote the Local Government private certification units to the development industry as a comparable alternative to the private independent building certification process.

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Attachment 1- Specific examples from Local Government officers

Armadale - Despite record building activity, City revenue from building fees feel by 38% compared with what it would have received under previous arrangements, While the City lost $460,000 in revenue, its obligations for which staffing are required changed very little. Workload has not decreased for City staff due to large numbers of enquiries, obligations to meet tight timelines and growing compliance demands. The State Government’s actions through enacting the Building Act have resulted in significant revenue being diverted from the City to the private sector, and the increased use of private certifiers has resulted in risk that the provisions of the Building Code and related planning requirements will not be met. The options available to the City are to reduce staffing costs (which is difficult in view of the responsibilities imposed under legislation and the enormous amount of building activity in the City), increase fees upon building activity where the City has the discretion to do so or allocate Municipal funds requiring the general ratepayer to meet the additional costs.

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Belmont - The fees under the old legislation were barely enough, ($85 minimum) these had been in place for 5 years. The minimum of $90 under the new act is totally unrealistic and should have been reviewed upwards to reflect the growing costs. My biggest concern is that the minimum fees for certified whether Commercial or Residential are generally, the same as uncertified, the money has been spent before it gets to a Building Surveyors desk. For an uncertified we have to lodge it, receipt it, record it, then assess for CDC and then issue a permit, how can all this be done for $90 and then we take responsibility for the structure for the rest of its life from an enforcement perspective.

The relationship between the % charged on more expensive projects should be the same as the minimums. If the fees do not reflect the true cost of providing the service the people who are developing are in fact being subsidised by all the other ratepayers, which is an unfair outcome.

It would be advantageous to have as many minimum fees and other fees (Strata, Occupancy and Demolition) aligned. That said, the minimum fee of $90 be reviewed to reflect the actual costs to Local Governments, it is only just a CPI catch up since 2008 and does not include any allowance for future rising costs.

All flat statutory fees should have a prescribed review date as in the past they have only been reviewed every 10 years which is totally unacceptable. It results in an unfair financial burden on Local Government and all the residents of the City who then subsidise the development process of the few who actually are using the services. It should be “user pays” as the applicants are the ones who benefit (financially or enjoyment) not all the other residents of the City.

Busselton - The City had budgeted for $550,000 to be collected from building permit fees in 2012/13 comparatively determined based on the previous year. The revenue collected by building permit fees is now expected to be closer to $500,000 this financial year. Even though, in this result the fees have dropped, the work load for each officer to issue approvals has increased by about 15‐20% above the previous system due to an increase in complexity in the procedures for making, receiving and assessing applications. It is estimated that permit revenue as a result of the new legislation has been affected by around 30%, but at the same time it has

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not yielded proportionate efficiencies. The City however, provides a competitive service. It is expected in some areas it will settle as the preferred service provider and revenue may return as operation of the new legislation matures, and the relative advantages are identified by the market place.

Cockburn - Verbally advised - decrease in revenue at 30%

Esperance - It has affected the Shire, albeit not as bad as City Local Authorities due to our location and that we still provide a value for money service but it still affects the bottom line so inspections have been reduced (one service while not visible has been reduced).

Harvey The following building statistics for the end of the financial year provide comparisons between pre Act and the New Act.

Year Licenses Value Dwellings Building Fees 2011/12 909 $74m 255 $280,495 2012/13 972 $88.8m 300 $249,103 Percentage Change + 6.9% + 20% + 17.6% - 11.2%

This is perhaps further confirmation of the impact on Council’s building revenue stream resulting from the introduction of the Building Act 2011. The new long term averages are as follows:

Term Licenses Value Dwellings Building Fees 10 year 1,088 $89m 345 $311,808 average 5 year 977 $100m 307 $324,322 average

In light of the new Act, Council is receiving less monies but is doing more.  Certified applications are consuming more time as they are often incomplete and require further information eg no septic or planning approvals.  Reconciling the Building Construction Fund and BSL - where the Building Commission is receiving, on a conservative estimate, $300,000 per month. We need to question the commission paid to Councils acting as an agent for the Commission. The Commission is receiving large sums of money for doing very little. Council are doing all the work for little return. The following graph shows the fees sent to the Building Commission by the Shire in the last 15 months – totaling $105,210.

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The above table indicates the money remitted to the Building Commission. Council has received a commission of appropriate $400 per month over this period. Therefore an income of not less than 3 million to the Commission per annum would be a modest estimate under this regime. So where does this fit into the objective of the Act as being more cost effective, efficient, etc. The estimate of 3 million is based on say 30 or so Local Governments providing equal to or higher than the monies listed above.

Compliance – The inference of the Building industry is that the role of Councils under the Building Act is on issuing permits with no regard to compliance. Antidotal comments indicate that the industry has taken its eye off the ball when it comes to compliance, as staffing levels are not being maintained. One of the larger players in residential building is having their Certificate of Design Compliances issued by a firm of building certifiers located in the eastern states. What is documented is not always what results on site. This is all in line with recent written advice from the Building Commission that a key objective of the New Act is to provide a comprehensive system of building control in WA. Concerned that Local Government is being set up to fail.

A more holistic view of the New Act needs to be considered because the objectives for the Act the inference was on providing a comprehensive system of building controls in WA. Not just the issuing of building permits. The attitude of the Building Industry would appear that Local Government is only a rubber stamp with little or no regard to compliance. This should be of great concern to Local Governments when the system is tested due to a failure.

Katanning - It is interesting that on the one hand government is all for “affordable housing” and then on the other, raises a levy that directly affects home owners. The Building Services Levy (which used to be the Builder’s Registration Board Levy) has gone from being a flat fee of $41.50. Customers do not understand why they have to pay this levy, particularly when the money is not available to local council’s but is being remitted to the State Government. Many

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customers consider this a tax on building, when really they consider the GST already covers this.

The introduction of the State’s own Special Permit Authority has also had an impact. While in the City this may be negligible, in the Country areas, often the only development occurring could be State projects. This can be the difference between a Shire being able to appoint a Registered Building Surveyor (as they are required to do so to meet the enforcement provisions of the Act) and not being able to. How does this provide a safe building system for all?

Manjimup  Building revenue was 34% less this financial year compared with previous years, there was some attributable decrease in number of applications and associated values for immediate previous year but average over past few years shows decline in revenue consistent around 30%.

 Staff work load has increased dramatically along with record keeping requirements and additional administrative functions with regard to the extensive additional requirements of the Act.

 Additional requirements of the Act have also led to higher expectations of building administration officers and associated level increases within those positions, thus further impacting cost increases to the Local Government.

 Loss of potential certification income for projects which are undertaken by others including other government departments on Shire controlled land leased to these others, where the Shire as the owner of the land (as defined in act) cannot undertake certification as BS not considered independent even though the shire has no financial control of project and does not own the “building”. Last financial year estimated 3-4k loss of certification revenue as a result.

 Regulated fees are definitely not commensurate with the additional administration time taken, costs associated (including ongoing insurance liabilities) and level of service needed to explain the complex requirements of the Act to the customer, both for uncertified applications and certified applications.

Melville – The City wrote to the Building Commissioner in April 2012, to highlight concerns with the proposed fees and charges under the Regulations. The City is of the view that the fees associated with Uncertified building applications (0.32%) is not a true reflection of the cost recovery for the services provided to the development industry. The service provided is a complete assessment process which is a more demanding and onerous process including referrals to other service areas as required by the Act, without any increase in the fees. Ratepayers within the City are directly subsidising the building fees for developers within the municipality. A review of the fees was suggested last year, so that the fees are set on a cost recovery basis.

Nedlands - The City recently undertook a review of the costs of processing certified applications and follow-up enforcement requirements as provided under the Building Act and compared such costs against the statutory building fees received for the same 6 month period. The resulting conclusion is that there is a substantial short fall in fees when compared to the actual costs incurred. The anticipated reduction in workload for building staff has not eventuated due to the requirement for council staff still undertaking a range of functions and review in accordance with sections 16, 20 and various regulations prescribed within the Act.

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The Fee for a certifed building permit only covers the cost of the function required to process the building permit and enforce compliance if necessary. This means that the processing of these permits is subsidised by the ratepayer which goes against the ‘user pays’ philosophy.

The fees incoroprated into the Building Regualtion 2012 are basically a copy of the statutory fees previous to April 2012, which very rarely covered the cost of processing. The fee for certified building permit applications has now halved the revenue from what was already a revenue shortfall. If the fees remain this low this will encourage low levels of fucntionality.

Below are the statstics for Nedlands over the last 4 years. Notice the marked drop in revenue over the past year even though the overall numbers of building permit applications is stable. What is not on this table is the number of certified to uncertified. From a snap shot we looked at a couple of months ago that the certified applications are running at about 1/3 of the total and that is gradually moving up.

Building control statistics 2009/10 2010/11 2011/12 2012/13 Building Permit applications 746 671 538 632 received Building Permits granted 580 506 458 509 New residences 59 55 62 68 Demolition permits 58 46 41 39 Swimming pool permits 50 70 47 49 Sign licences 8 1 5 6 Verge material permits 35 41 25 34 Building approval certificates 27 26 20 22 Value of fees collected $558 $481 088 $432 $288 233 354 149 Value of all works $89 600 $86 660 $90 902 $100 495 198 000 819 244

Northampton - The fees revenue has dropped significantly but the workload has not decreased in fact it has increased and with less reward for the required work effort.

Port Hedland - The costs involved in processing building permits definitely outweighs the income generated in some aspects. This is particularly true for smaller permits when the value of work is under $50 000 we receive $95 to process an certified building permit (for a pool or shed for example), this would barely cover the administration just to file the information (especially up here in the Pilbara) and $160 for an uncertified permit and we find that we quite regularly request further information which takes more time and processes. The pools must also be inspected, the cost of which will never be covered by a $95.00/$160 fee. An allowance for a pool inspection fee, for pool permits, in the fee schedule would be prudent. The building department is quite disadvantaged in this respect.

The fee of $55 for the 4 yearly pool inspections is also low for the costs involved especially when reinspections are often involved. The cost for an inspection in remote regions is likely to be3 or 4 times this charge. It would be prudent to have the ability to charge for pool reinspections included in legislation as it is not clear if councils are able to charge for these.

The fees for permits are particularly low where in remote regions staff pay rates are well above those in Perth. Private Certification forces Local Government to pick up their act and feed applications out at a faster rate if they wish to compete with the private sector (which is a good thing in part) and obviously are required to issue certified permits at a fast rate. Where Local

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Government struggles to keep up with private practice is that they still need to perform many functions which private certifiers do not eg. Compliance & community advice – a lot of which they do not receive any payment for and Council often expects the building departments to pay their own way, which has been made extremely difficult with private certifier competition.

The new system is definitely complicated and over complex confusing professionals and the community alike. I have seen in the eastern states when private certification gained a stronghold, many councils have closed their building departments and this is a disservice to the community who still come to the council for help. At least with this system local government can still keep qualified staff to help the community.

Rockingham - Here are the figures we have from the close of the last financial year, there does not appear to be a downturn in income, but other matters do come into play, ie, setting up processes etc is time consuming and would have cost time (& $s’s) and frustration—those a typical of bedding down/implementing of any new legislation, hence there is a cost to the City. Application numbers are up from the previous year.

Expenses for Building Services 2012-2013 Financial Year Amended Budget--$197,830 (Revised from $185,900 at adoption of 2012/13 Budget) Actual $196,271 (Actual 2011-12 $169,599) - $1,559 ahead Income for Building Services Amended Budget $1,577,994 (Revised from $1,478,300 at adoption of 2012/13 Budget— via quarterly amendments) Actual-$1,642,426 (actual 2011-12—$1,476,632) - $64,432 ahead

From the above I cannot see that we were “suffering” any hardship—based on the “Actual” figures the Income has increased from the previous year. Building Permits issued for 2012-13 was 4140, Permits (Licenses) issued 2011-12 was 3521, so we are 619 up on the previous year.

Wanneroo - The City is in the same position as Armadale. We are under enormous pressure due to the legislated timeframes and additional processes, yet we are disadvantaged financially in comparison to the previous Act. For us to meet the timeframes in the Building Act we have been given no option but to issue Certified permits with only very basic checks. Sooner or later this is going to result in issues of compliance with the R-Codes. While we would like to be able to check whether a builder for a certified application is complying with the R-Codes, we simply do not have the time or resources to do so. Even if we did have the resources to undertake these checks the nature of the work isn't interesting enough to keep experienced or qualified Building Surveyors. To combat this issue we are currently looking at the possibility of setting up our own business unit to compete with the private sector. Depending on the structure of this business unit we may be restricted by the legislated fees. The Local Government Act currently doesn't allow for a "Council Controlled Trading Organisation", which means that we may have no way to compete financially with the private sector.

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5.5 Assistance for WA’s Rural Local Governments and Communities (05-100- 03-0001 PS) By Paul Schollum, Policy Manager Economics

Moved: President Cr E O’Connell Seconded: Cr J Brown

That the Association’s Position Paper on ‘Assistance for WA’s Rural Local Governments and Communities’ be endorsed, with Recommendations 1-9 contained therein informing WALGA’s advocacy position, subject to the following changes to Recommendation’s 2 and 8 in the Position Paper: Change Recommendation 8 to: 8. That the WA State Government provide additional funding to assist rural Local Governments in providing essential services, including counselling services, for their communities. Change Recommendation 2 to include: 2a. That these grants also be considered for costs associated with works to allow local participation, for example the additional overhead costs associated with training and public liability insurance.

AMENDMENT Moved: Cr D Thompson Seconded: Cr C Mitchell

Change Recommendation 8 to: That the WA State Government provide additional funding to assist rural Local Governments in providing essential services, and needed services such as but not limited to counselling, for their communities. CARRIED

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THE AMENDMENT BECAME THE MOTION That the Association’s Position Paper on ‘Assistance for WA’s Rural Local Governments and Communities’ be endorsed, with Recommendations 1-9 contained therein informing WALGA’s advocacy position, subject to the following changes to Recommendation’s 2 and 8 in the Position Paper: Change Recommendation 8 to: 8. That the WA State Government provide additional funding to assist rural Local Governments in providing essential services, and needed services such as but not limited to counselling, for their communities. Change Recommendation 2 to include: 2a. That these grants also be considered for costs associated with works to allow local participation, for example the additional overhead costs associated with training and public liability insurance.

RESOLUTION 247.4/2013 CARRIED UNANIMOUSLY

In Brief  Farmers in WA are currently facing a number of challenges, including: poor seasons, rising costs and high debt levels. Subsequently, at the Association’s State Council meeting in May, ‘Support for Agricultural Areas’ was raised as an emerging issue.  State Council resolved that the Association should prepare a paper to highlight the challenges being experienced in rural communities and the long term implications of the agricultural downturn. The paper would also outline preferred solutions to mitigate the effects of these difficulties on Local Governments and their communities.  The position paper prepared by the Association confirms that the challenges affecting farmers are having significant flow-on impacts for WA communities. Rural Local Governments are struggling to maintain services and infrastructure during periods of decline in the local economy.  The position paper therefore seeks: o Assistance in reducing the infrastructure backlog for rural Local Governments from both the Federal and State Governments o The implementation of a grants scheme that provides stimulus funding for Local Governments in regions experiencing drought or other severe economic circumstances o Greater funding for rural Local Governments to provide essential services, support services and community events

Attachment Position Paper on ‘Assistance for WA’s Rural Local Governments and Communities’

Relevance to Strategic / Business Plan  Providing strong representation for Local Government  Providing effective leadership for Local Government

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 Building a positive profile for Local Government  Enhancing the capacity of Local Government to deliver services

Policy Implications In May 2013 State Council resolved:

1. State Council acknowledges:  the difficulties being faced by farmers in the Wheatbelt and other agricultural areas due to poor seasons, rising costs and high debt levels;  the potential financial impact this may have on individual Local Governments, rural businesses and rural communities; and  the assistance packages provided by the State and Commonwealth Government for farmers in crisis.

2. That WALGA coordinate development of a representative paper with affected Local Governments, which highlights the potential long term financial / economic implications of the agricultural downturn on Local Governments and their communities and outlines preferred solutions that may assist in minimizing the impacts of these on Local Governments and the community.

3. That WALGA write to the relevant Ministers and State and Federal Government agencies thank them for their assistance and to highlight the views of the affected Local Governments, as set out in the paper and the need for appropriate resources and long term planning support to be provided to assist rural Local Governments and their communities.

Background Farmers in WA are currently facing a number of challenges, including: poor seasons, rising costs and high debt levels. In April this year, growing concern in the rural community was demonstrated by an industry meeting held in Merredin to discuss the worsening agricultural outlook. The meeting was attended by approximately 1,000 people, including farmers, business people, industry representatives and politicians.

Members from the Association’s Great Eastern Country Zone (GECZ) also recently highlighted the difficulties being faced by farmers and the potential consequences for rural communities and their Local Governments. At the Association’s State Council meeting in May, the GECZ raised ‘Support for Agricultural Areas’ as an emerging issue. Members of the GECZ felt there was a need to determine the potential long term impacts of the agricultural downturn and identify State and Federal Government measures that could be introduced to assist rural Local Governments. State Council subsequently made the resolution detailed in the ‘Policy Implications’ section of this agenda item.

Comment The Association has prepared a position paper (see attachment) seeking greater assistance for rural Local Governments and their communities.

The Association’s research and feedback from Local Governments confirmed that the challenges affecting farmers are having significant flow-on impacts for WA communities.

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Particular concerns included: decreasing community morale, diminished social capital, an increasing incidence of depression and stress, and the economic impact of reduced spending by farmers. Rural Local Governments almost unanimously suggested that their farmers required greater assistance from the Federal and State Governments.

Rural Local Governments themselves also require greater assistance. Many Local Governments indicated their already low fiscal capacities were further challenged by difficult economic circumstances. Additionally, several Councils provided examples of infrastructure backlogs that were challenging their financial circumstances and ability to serve their communities.

In light of the many challenges facing WA’s rural Local Governments and their communities, the Association made the following recommendations:

RECOMMENDATION 1 That the Federal Government increase the General Purpose Grant component of Financial Assistance Grants to improve the financial sustainability of rural Local Governments.

RECOMMENDATION 2 That the WA State Government implement a program of temporary grants targeted to rural Local Governments in regions affected by drought or other severe economic circumstances. The grants should be untied and provided in a responsive manner to these Local Governments so they can then respond to local conditions and provide economic stimulus and development funding for their communities.

RECOMMENDATION 3 That the Federal Government increase funding for Local Government roads, preferably through the Identified Road Grant component of Financial Assistance Grants, or alternatively, through an increase in Roads to Recovery funding.

RECOMMENDATION 4 That the Federal Government makes the Roads to Recovery program permanent to provide certainty for Local Government’s long-term planning and budgetary considerations.

RECOMMENDATION 5 That the Federal Government provide another round of the Regional and Local Community Infrastructure Program with an emphasis on providing funding to rural Local Governments in economically challenged areas.

RECOMMENDATION 6 That the WA State Government increase the level of funding it provides for Local Government roads, particularly in the regions of WA with relatively lower economic growth.

RECOMMENDATION 7 That the WA State Government increase the quantum of the Country Local Government Fund.

RECOMMENDATION 8 That the WA State Government provide additional funding to assist rural Local Governments in providing essential services for their communities.

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RECOMMENDATION 9 That the WA State Government provide another round of Community Support Grants with an expanded scope for the funding. Local Governments should be able to use the grants for funding support services as well as expenditure on community events.

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Item 5.5 - Attachment

WALGA Position Paper

Assistance for WA’s Rural Local Governments and Communities

August 2013

Contact: Paul Schollum Western Australian Local Government Association 15 Altona Street, West Perth, WA 6005 P.O. Box 1544, West Perth, WA 6872 T: (08) 9213 2096 E: [email protected]

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Contents

Executive Summary ...... 47 1. Introduction ...... 48 1.1 About WALGA ...... 49 1.2 Events leading to this position paper ...... 49 1.3 Outline of the position paper ...... 50 2. Economic and social issues in rural areas ...... 50 2.1 Agricultural terms of trade and productivity ...... 50 2.2 Australia’s exchange rate and ‘Dutch disease’...... 52 2.3 Drought and climate change in WA ...... 55 2.4 Farming Debt in WA ...... 56 2.5 Population decline and ageing population in rural WA...... 57 2.6 Mental health in rural areas ...... 59 2.7 Government agricultural assistance ...... 60 2.8 Financial sustainability of rural Local Governments ...... 62 3. WALGA’s farming and rural community issues survey ...... 64 3.1 Difficulties faced by farmers in WA ...... 65 3.2 Challenges for rural WA Local Governments and Communities ...... 66 3.3 Views on farm assistance programs ...... 68 3.4 Views on assistance for rural Local Governments ...... 69 4. Long term outlook and recommendations ...... 71 4.1 Long term implications for WA’s rural communities ...... 71 4.2 Recommendations ...... 72

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Executive Summary

The Western Australian Local Government Association (WALGA or ‘the Association’) has prepared this position paper to bring attention to the challenges being faced by WA’s rural communities, particularly in the Wheatbelt region. This paper represents the views of affected Local Governments, including the sector’s recommendations on policies that would assist rural communities and Councils during this difficult period.

There are a number of serious social and economic issues affecting rural communities in WA. The long term decline in farmers’ terms of trade presents a major challenge to the profitability and sustainability of the State’s agriculture industry. Cost pressures and a high exchange rate resulting from Australia’s booming resources sector have contributed significantly to this decline. In WA’s Wheatbelt region, further challenges for farmers include drought and high levels of debt. Many rural communities in WA also face declining and ageing populations as well as the impact of mental health issues.

While Local Governments attempt to support their communities during such challenges, this has become increasingly difficult due to decreasing support from other levels of government and a growing infrastructure gap.

Feedback from Local Governments confirms the challenges affecting farmers are having significant flow-on impacts for WA communities. Particular concerns included decreasing community morale, diminished social capital, an increasing incidence of depression and stress, and the economic impact of reduced spending by farmers. Rural Local Governments almost unanimously suggested that their farmers required greater assistance from the Federal and State Governments. Common suggestions for assistance included: provision of low interest loans, underwriting a multi-peril crop insurance scheme, reducing the tax burden for agricultural businesses, and the removal of red tape (particularly for live export farmers).

In light of the many challenges facing WA’s rural Local Governments and their communities, the Association makes the following recommendations:

RECOMMENDATION 1 That the Federal Government increase the General Purpose Grant component of Financial Assistance Grants to improve the financial sustainability of rural Local Governments.

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RECOMMENDATION 4 That the Federal Government makes the Roads to Recovery program permanent to provide certainty for Local Government’s long-term planning and budgetary considerations.

RECOMMENDATION 6 That the WA State Government increase the level of funding it provides for Local Government roads, particularly in the regions of WA with relatively lower economic growth.

RECOMMENDATION 7 That the WA State Government increase the quantum of the Country Local Government Fund.

RECOMMENDATION 8 That the WA State Government provide additional funding to assist rural Local Governments in providing essential services for their communities.

1. Introduction

The Western Australian Local Government Association has prepared this position paper to bring attention to the challenges being faced by WA’s rural communities, particularly in the Wheatbelt region. This paper represents the views of affected Local Governments,

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including the sector’s recommendations on policies that would assist rural communities and Councils during this difficult period.

1.1 About WALGA

The Western Australian Local Government Association (WALGA or ‘the Association’) is the united voice of Local Government in Western Australia. The Association is an independent, membership-based group representing and supporting the work and interests of all 140 Local Governments in Western Australia.

The Association provides an essential voice for approximately 1,250 elected members and approximately 14,500 Local Government employees of the Local Governments in Western Australia and Christmas Island and Cocos (keeling) Island Councils. The Association also provides professional advice and offers services that deliver financial benefits to the Local Governments and the communities they serve.

1.2 Events leading to this position paper

Farmers in WA are currently facing a number of challenges, including: poor seasons, rising costs and high debt levels. In April this year, growing concern in the rural community was demonstrated by an industry meeting held in Merredin to discuss the worsening agricultural outlook. The meeting was attended by approximately 1,000 people, including farmers, business people, industry representatives and politicians.

Members from the Association’s Great Eastern Country Zone1 (GECZ) also recently highlighted the difficulties being faced by farmers and the potential consequences for rural communities and their Local Governments. At the Association’s State Council2 meeting in May, the GECZ raised ‘Support for Agricultural Areas’ as an emerging issue. Members of the GECZ felt there was a need to determine the potential long term impacts of the agricultural downturn and identify State and Federal Government measures that could be introduced to assist rural Local Governments.

The Association’s State Council subsequently made the following resolution:

WALGA State Council resolution 192.2/2013

1. State Council acknowledges:

 the difficulties being faced by farmers in the Wheatbelt and other agricultural areas due to poor seasons, rising costs and high debt levels;

 the potential financial impact this may have on individual Local Governments, rural businesses

1 The Great Eastern Country Zone covers the north-east region of the Wheatbelt and includes the Local Governments of: Bruce Rock, Cunderdin, Dowerin, Kellerberrin, Kondinin, Koorda, Merredin, Mount Marshall, Mukinbudin, Narembeen, Nungarin, Tammin, Trayning, Westonia, Wyalkatchem and Yilgarn. 2 State Council is the decision making representative body of all WALGA member Councils. State Council is responsible for sector-wide policy making and strategic planning on behalf of Local Governments in WA.

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and rural communities; and

 the assistance packages provided by the State and Commonwealth Government for farmers in crisis.

1.3 Outline of the position paper

Section 2 of this paper provides an overview of the major social and economic issues affecting rural communities across WA and Australia. Section 3 presents the views of rural WA Local Governments on these issues as well as providing views on suggested solutions. Section 4 concludes the paper by discussing the long-term outlook and making several recommendations that would improve the sustainability of rural Local Governments and their communities.

2. Economic and social issues in rural areas

This section of the paper examines the major social and economic issues affecting rural communities across WA and Australia, including: the decline in farmers’ terms of trade; the exchange rate; drought and climate change; debt; ageing and declining populations; and mental health issues. This section also discusses government assistance to the agricultural industry and the financial sustainability of rural Local Governments.

2.1 Agricultural terms of trade and productivity

There are two perennial challenges for the agricultural industry in Australia: (1) farmers’ incomes are volatile and (2) farmers’ incomes generally increase at a slower rate than other industries. The combination of these two factors is sometimes known as ‘the farm problem’ – and it is a problem encountered by farmers in most developed countries.

The volatility of farmers’ incomes is caused by fluctuations in the prices received for agricultural products. Figure 2.1 below shows the extent of this price volatility for selected commodities that are important to WA’s agriculture industry:

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Figure 2.1 Price indexes for selected agricultural

commodities Source: ABARES, Agricultural Commodity Statistics, 2012

The prices received by Australian farmers fluctuate due to domestic and international factors. Variations in the Australian climate affect the quantity produced in a given season and subsequently have an impact on prices. International changes in the supply of agricultural commodities influence prices on world markets, which then also affects Australian prices.

Another problem for farmers is that agricultural incomes increase at a slower rate than incomes in other industries. Agricultural products are mostly necessities; therefore, as incomes grow, households generally reduce the proportion of their income that is spent on these goods and direct a greater proportion of spending to services and manufactured goods. Table 2.1 below shows that the expenditure group ‘food’ has declined as a share of household consumption over time in Australia.

Table 2.1 Selected expenditure groups as a proportion of household consumption

Expenditur 1959 1969 1979 1989 1999 2009 e group -60 -70 -80 -90 -00 -10 % % % % % % Food 18.0 14.9 13.4 11.5 10.3 10.4 Housing 8.8 12.1 16.2 18.3 17.9 19.8 Health 3.8 4.5 5.1 4.4 4.9 5.8 Education 1.0 1.4 1.4 2.4 3.1 4.0 Communica 0.6 0.8 1.2 1.3 2.3 2.6 tion Source: Productivity Commission, Economy-wide Modelling of Impacts of COAG Reforms; ABS, 5204.0

Agriculture’s decreasing share of the economy is exacerbated by the industry’s continual productivity improvements. Farmers operate in an extremely competitive market and must constantly seek to improve their productivity to increase profits. This productivity growth increases the quantity of goods supplied and lowers per unit costs. However, due to intense competition, farmers are price takers in the long term and must pass any cost savings on in the form of lower prices. Thus any short term gains in profits due to

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productivity are soon eroded by competition and the benefits are passed on to the consumer.

Agricultural incomes are variable and subject to downward pressure from the impact of productivity and other economic impacts. The expenses faced by farmers, on the other hand, generally rise each year. Farmer’s costs include inputs such as labour, fuel, machinery and fertiliser. The following diagram shows that input prices have risen almost continuously since 1990-91. At the same time, the prices received by farmers have grown at a slower rate, causing a decline in farmers’ terms of trade3.

Figure 2.2 Australian farmers’ terms of trade

Source: ABARES, Agricultural Commodity Statistics, 2012

2.2 Australia’s exchange rate and ‘Dutch disease’

The strength of the dollar has worsened the effects of the farm problem in recent times by making Australian agricultural exports less competitive overseas. The following figure shows the extent of this challenge to farmer’s profitability in recent times. For most of 2011 and 2012, the Australian dollar traded above parity with the US dollar. Some relief has been provided in recent months with the exchange rate dropping to around 0.90 – 0.92 cents per US dollar.

3 Farmers’ terms of trade is the ratio of the prices received for outputs relative to the prices paid for inputs.

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Figure 2.3 Australian dollar – US dollar exchange rate

Source: Reserve Bank of Australia

A key factor in the recent strength of the dollar has been the global demand for Australia’s mineral resources. This is one of the impacts of a mining boom when a country is said to be affected by ‘Dutch disease’.

Dutch disease occurs when strong demand for its natural resources leads to expansion of the mining sector and a relative (or absolute) contraction of trade exposed industries not connected to mining. Commodity price rises generally lead to a stronger currency, while expansion of the mining sector leads to labour shortages and higher wage costs in the rest of the economy. These effects of the mining boom have a negative impact on other trade exposed industries, such as manufacturing and agriculture.

The following graph demonstrates this effect may be present in WA. From 1989-90 to 2011-12, the Mining industry’s share of the WA economy (as measured by Gross State Product) increased from 26.9% to 35.2%. Over the same period, the Agriculture industry’s share decreased from 3.1% to 1.6%:

Figure 2.4 Selected industries’ as a proportion of the WA economy

Source: ABS 5220.0

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During the period of mining led growth, Australia has frequently been described as a ‘two- speed’ economy. The resource rich states of WA and Queensland have shown significantly higher levels of growth than the nation’s other jurisdictions:

Figure 2.5 Growth in Gross State Product by jurisdiction

Source: ABS, Australian National Accounts: State Accounts (5220.0)

However, while WA has undoubtedly benefitted from the mining boom, the term two-speed economy could also apply within the state. Looking at the growth of Gross Regional Product within WA suggests the gains from the mining boom have mostly been enjoyed by the Perth, Peel and Pilbara Kimberley regions:

Figure 2.6 Growth in Gross Regional Product within WA

Source: National Economics, State of the Regions 2013-14

The low average annual growth of 0.9% for the Wheatbelt Great Southern region in the period from 2010 to 2013 reflects this area’s dependence on agriculture and the challenges currently being faced by the region’s farmers. Some of these challenges are the result of high growth in other regions through the effects of Dutch disease, i.e., the appreciation of the dollar, labour shortages and increased costs.

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2.3 Drought and climate change in WA

Variable seasons and the possibility of unfavourable weather are substantial risks faced by the agriculture industry. In the north-eastern area of WA’s Wheatbelt region, the last few years have brought drought, frost and unseasonable rain variability. As with most agricultural commodities, the variation in seasons has severe impacts on the level of wheat production.

For example, the following graph shows that with the exception of 2011-12, every season after 2005-06 has either been well below or barely above long-term average production levels:

Figure 2.7 WA wheat production

Source: ABARES, Agricultural Commodity Statistics, 2012

A very dry June in most parts of the Wheatbelt led to a pessimistic outlook for the 2013-14 season. This was demonstrated by the WA Department of Agriculture and Food’s wheat yield forecasts, which anticipated a below average season for most areas.

Figure 2.8 Predicted wheat yields by Local Government Area – 1 July 2013 (compared with years 1914-2012)

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Source: WA Department of Agriculture and Food. Note: Based on rainfall to date and assuming average rainfall for the past 30 years for the remainder of the year.

Since the above forecast was made prospects for the 2013-14 season for some areas have improved due to increased rains in July. However, while the short term outlook may have improved, farmers in WA may increasingly have to contend with declining rainfall and higher temperatures as the effects of climate change intensify over time. One estimate suggests that by 2050, higher temperatures and changing rainfall could lead to yield losses of more than 30% in north-eastern areas of the Wheatbelt4.

2.4 Farming Debt in WA

The recent poor seasons and high Australian dollar have led to low levels of profitability for WA farmers and contributed to an increase in debt. In the last ten years, debt for broadacre farms in WA has approximately doubled in real terms. The figure below shows that over the same period broadacre farm incomes and profitability have been volatile with only small growth in real terms:

4 Van Gool, D. 2009, Climate change effects on WA grain production. Western Australian Agriculture Authority, Perth.

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Figure 2.9 WA broadacre farms’ average income, profit and debt

Source: ABARES Agsurf database, all financial estimates are expressed in 2012-13 dollars

2.5 Population decline and ageing population in rural WA

As conditions in the agriculture industry have deteriorated over time relative to other industries, the population in a number of rural areas has declined. Also contributing to this trend is the tendency for farmers to increase the size of their farms in search of economies of scale and greater productivity.

The following figure demonstrates that the total numbers of person employed in the agriculture industry in Australia have declined from 437,800 in 2001-02 to 335,000 to 2011- 12.

Figure 2.10 Agricultural employment in Australia

Source: ABARES, Agricultural Commodity Statistics, 2012

The above figure also shows that while owner-farmers have declined over time, the number of wage and salary earners has remained relatively constant over time. In future years it could be expected that wage and salary earners will continue to comprise a growing proportion of the total persons employed in the agriculture industry due to the trend towards larger farms. Corporatisation or increased foreign ownership of farms may further contribute to this trend.

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The decreasing trend in agricultural employment is also apparent in Western Australia. The total number of persons employed in agriculture decreased from 36,674 in 2001 to 26,594 in 2011. Furthermore, there was a decline in agricultural employment across all the major regions of WA:

Figure 2.11 Agricultural employment in WA by SA45

Source: ABS, Census 2011

The decrease in agricultural employment in the Wheatbelt has led to decreasing populations in a number of Local Government Areas (LGAs) in the region. Although some LGAs in the Wheatbelt have experienced growth in their populations, these tend to be located in close proximity to Perth or on the coast, e.g. Chittering, Dandaragan, Gingin, Northam and Toodyay. Being located near Perth often means these LGAs have a more diverse economic base than areas further inland that are more reliant on farming. Figure 2.12 below shows the Wheatbelt LGAs with the declining populations tended to be those located further away from Perth:

Figure 2.12 Population growth and distance from Perth for selected Wheatbelt LGAs

Source: ABS, Regional Population Growth (3218.0) Note: Graph only includes LGAs with a population of 1,000 or more in 2012.

5 SA4s are the broadest statistical areas that the ABS defines below the state/territory level.

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As well as areas of significant population loss, the Wheatbelt region is also facing an ageing population. The following figure compares the change in population between the 2001 and 2011 Census across different age groups for WA as a whole and for the Wheatbelt SA4:

Figure 2.13 Population growth from 2001 to 2011 by age group

Source: ABS, Census 2011

Considering the needs of an ageing population is a challenge for communities across Western Australia. However, the above figure shows that this challenge is particularly prominent in the Wheatbelt. The population loss in the 25-34 and 35-44 year age groups has worrying implications for the region, since people from these age groups often contribute significantly to local economies and to the social capital of communities.

2.6 Mental health in rural areas

The mental health of men in rural areas of Australia continues to be a concern for policy makers. People living in remote and regional areas are more likely to have mental health issues than those who live in major cities. Research suggests this may be due to factors such as socioeconomic disadvantage, a harsher natural and social environment, loneliness and isolation, and less access to health services6. Furthermore, men from remote and regional areas are 28% more likely to have a substance use disorder at some point in their life than men living in major cities7.

Suicide statistics also suggest that mental health issues are generally more prevalent in rural Australia than in urban areas. This tendency is also apparent for WA:

Table 2.2 Age standardised suicide rate by geographic region, WA

Standardised Standardised Change from suicide rate suicide rate 2001-2005 to 2001-2005 2006-2010 2006-2010

6 Australian Institute of Health and Welfare 2008, Australia’s Health 2008. 7 Australian Institute of Health and Welfare 2010, A snapshot of men's health in regional and remote Australia.

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Perth 11.4 12.2 7.0% Other urban n.a 13.6 n.a WA Rest of WA 15.1 18.5 22.5% Total WA 11.8 13.2 11.9%

Source: ABS, 3309.0

Unfortunately suicide rates across WA have increased in 2006-2010 compared to 2001- 2005. While the suicide rate in Perth increased by 7.0%, the rate increase in the ‘rest of WA’ was substantially greater at 22.5%.

2.7 Government agricultural assistance

The Federal and State Government provide a number of assistance measures to Australia’s farmers. This assistance often attempts to mitigate particular outcomes that result from the inherent risk of the agriculture industry, including volatile commodity prices and drought impacts.

Compared to other countries, Australia’s level of direct assistance to farmers is very small. A recent study by the OECD found that Government support as a proportion of total farm receipts was 3%, compared to an average of 20% for all OECD countries8:

Figure 2.14 Government support as a percentage of gross farm receipts for selected countries

Source: OECD, Agricultural Policy Monitoring and Evaluation 2012

Many countries provide a great deal of ‘price support’ assistance, such as subsidies, to their famers. Australian governments, on the other hand, tend to provide assistance to farmers in a more general way in an attempt to boost productivity and spread benefits across the whole industry. Such support includes funding agricultural Research and Development (R&D) and seeking improved market access for Australian farmers’ exports. Australia has also lobbied the World Trade Organisation for fairer international trade in

8 Organisation for Economic Co-operation and Development 2012, Agricultural Policy Monitoring and Evaluation 2012: OECD Countries.

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agricultural commodities, particularly working towards the reduction and removal of subsidies and tariffs.

The Federal Government and the WA State Government also provide some more specific assistance measures – these are discussed below.

2.7.1 Federal Government assistance measures

The Federal Government provides a number of drought and rural assistance measures, such as:

 Transitional Farm Family Payment  Exceptional Circumstances Relief Payment  Farm Management Deposits  Tax concessions

The Transitional Farm Family Payment is available to eligible farm families experiencing financial hardship. The Exceptional Circumstances Relief Payment (ECRP) also provides financial assistance but it is only available to farming families in EC-declared areas, such as those affected by severe drought.

The Farm Management Deposits (FMD) scheme mitigates the effects of volatility in gross income by smoothing out after-tax income. The scheme allows farmers set aside pre-tax earnings from years of high income which can then be drawn down in years of low income.

Earlier this year, the Federal Government announced several reforms to existing assistance packages with a focus on helping farmers ‘prepare for and manage the effects of drought and other challenges, rather than waiting until they are in crisis to offer assistance’9. From July 2014, the Transitional Farm Family Payment and the ECRP will be replaced by the Farm Household Allowance. The new allowance provides for longer periods of support and is more targeted to individual need rather than being dependent on EC-declarations. Also included in the reforms was an increase in the income threshold for FMDs from $65,000 to $100,000.

The Federal Government has also committed to providing $60 million to each state during 2013-14 and 2014-15 on concessional loans for productivity enhancement projects or debt restructuring. The availability of loans in each jurisdiction is dependent on the Federal Government and State Government agreeing on the delivery arrangements for the loans. Recently, an agreement was reached for WA’s loan arrangements where the Commonwealth agreed to finance up to 300 low-interest loans of up to $200,000. However, at the time of writing this position paper, it appears these arrangements have not been finalised as the loans are not yet available.

9 http://www.daff.gov.au/agriculture-food/drought

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2.7.2 State Government assistance measures

In April this year, the State Government responded to the agricultural downturn in the Wheatbelt by providing a $7.8 million package to support farm businesses and rural communities. The components of this package included:

 $1.5 million additional funding for regional counselling and support services  $300,000 for community support grants  Up to $5 million in financial support for broadacre farm businesses in ‘significant financial stress’ ($25,000 per eligible farm business)  Up to $1 million in farm exit support grants ($20,000 per eligible farm business)

2.8 Financial sustainability of rural Local Governments

Most Local Governments have difficulty raising enough ‘own-source’ revenue to meet their expenditure needs. As a result, Local Governments are dependent on transfers from other levels of government in Australia. For example, the Financial Assistance Grants (FAGs) scheme is a major source of Commonwealth funding to Local Governments.

Rural Local Governments often have a small rates base due to low populations and are particularly dependent on FAGs and other grants. The following table shows FAGs as a proportion of total revenue by Australian Classification of Local Governments (ACLG). The FAGs proportion ranges from 0.4% in the Urban Capital City category to 36.7% in the Rural Remote Extra Small category.

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Table 2.3 FAGs as a proportion of WA Local Government revenue by ACLG, 2010-11

ACLG description ACLG code FAGs as a proportion of total revenue (%) Urban Capital City UCC 0.4 Urban Developed Small UDS 2.1 Urban Developed UDM Medium 2.6 Urban Developed Large UDL 3.1 Urban Developed Very UDV Large 3.6 Urban Regional Small URS 5.8 Urban Regional Medium URM 4.6 Urban Regional Large URL n/a Urban Regional Very URV Large n/a Urban Fringe Small UFS n/a Urban Fringe Medium UFM 4.2 Urban Fringe Large UFL 2.4 Urban Fringe Very Large UFV 2.4 Rural Significant Growth RSG 9.1 Rural Agricultural Small RAS 21.0 Rural Agricultural RAM Medium 13.3 Rural Agricultural Large RAL 12.3 Rural Agricultural Very RAV Large 12.5 Rural Remote Extra RTX Small 36.7 Rural Remote Small RTS 22.3 Rural Remote Medium RTM 25.5 Rural Remote Large RTL 19.6 All ACLG categories - 7.2 Source: WALGGC 2010-11 data

Unfortunately, despite the importance of FAGs to Local Governments in WA, this source of revenue has been decreasing in relative terms over time:

Figure 2.15 FAGs as a proportion of total WA Local Government revenue

Source: ABS, 5512.0; WALGGC Annual Reports; author calculations.

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In 2001-02, FAGs made up 9.5% of Local Government revenue in WA. By 2011-12, the FAGs proportion had decreased to 7.2%. As a result of this decreased assistance from the Commonwealth, Local Governments must increasingly draw upon the fiscal capacity of their communities. While this may be possible for some Local Governments in urban areas with high socio-economic status, the same cannot be said of most Local Governments in WA. Rural Councils, in particular, are heavily reliant on grant funding and already have rate levels at or near their feasible maximum. Indeed, in 2008, the Productivity Commission found that rural and remote Local Governments were already drawing heavily on their fiscal capacities and had little potential to increase their own-source revenue10.

The decline in FAGs and the low fiscal capacity for most Local Governments in WA have contributed to a significant infrastructure backlog for the sector. The Association estimated the size of this backlog was $1.75 billion in 200511. The recent review of the Country Local Government Fund suggested this estimate is ‘potentially very conservative’ and that $800 million of maintenance expenditure may be required for the State’s road network alone12.

Cost shifting from other levels of government presents a further financial challenge. The 2003 ‘Hawker report’ found that while Federal and particularly State Governments expected Local Governments to undertake more functions, little or no funding was provided to match the increased responsibilities13. In rural areas Local Governments are often the service provider of last resort and must fill the gaps left by other levels of government. Typically, this includes funding services that are essential to their communities, such as emergency and medical services.

3. WALGA’s farming and rural community issues survey

The Association recently conducted a survey to canvass the views of WA’s rural Local Governments on the difficulties facing their communities. The survey was comprised of two sets of survey questions. The first set of questions asked about the extent to which Local Governments felt farmers in their area were affected by various factors (particularly the problems discussed in section 2). The results of these questions are discussed in section 3.1.

The second set of questions sought information on: the anticipated impact of the current difficulties on Local Governments and their communities; views on current forms of government assistance for farmers; and the preferred solutions to the current problems. The responses to these questions are discussed further in sections 3.2, 3.3 and 3.4.

10 Productivity Commission 2008, Assessing Local Government Revenue Raising Capacity. 11 WALGA 2006, In Your Hands: Shaping the Future of Local Government in Western Australia – Final Report. 12 Western Australian Regional Development Trust 2012, Review of the Royalties for Regions Country Local Government Fund. 13 House of Representatives Standing Committee on Economics, Finance and Public Administration 2003, Rates and Taxes: A Fair Share for Responsible Local Government.

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3.1 Difficulties faced by farmers in WA

Of the 43 Local Governments in the Wheatbelt, 25 responded to the survey – a response rate of 58.1% for this region. Responses to the survey confirmed that most of the issues discussed in section 2 of this paper were having a serious impact on farmers in the Wheatbelt:

Figure 3.1 Impact of various issues on farmers (Wheatbelt LGs)

The most serious challenges included: drought, other unfavourable weather conditions (e.g., frost) and high levels of debt. Issues that affected farmers’ terms of trade also had a major impact, including: the high Australian dollar and high input costs.

Costs resulting from governments, such as regulatory compliance and taxation, had some impact, but were generally not considered as serious. Local Governments were also asked to nominate any additional issues affecting farmers in their area. A number of respondents indicated uncertainty in the live export market, due to previous bans and the implementation of the Exporter Supply Chain Assurance Scheme (ESCAS), was having a severe impact. For example:

o Introduction of ESCAS has severely damaged relationships with livestock trading countries, largely reducing existing markets and therefore livestock return. Many producers are leaving the industry.

The Association also received 18 responses from rural Local Governments in other regions of WA. These responses tended to indicate less impact from drought and other unfavourable weather conditions. However, high levels of debt and terms of trade factors such as the high Australian dollar and high input costs appear to be a concern across the state:

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Figure 3.2 Impact of various issues on farmers (non-Wheatbelt LGs)

The live export market was also raised by some Local Governments as an issue for the farmers in their region. One respondent stated that although their area was not usually considered part of the Wheatbelt, the grain growing area had continued to expand because of ‘uncertainty in livestock production due to government intervention’. Additionally, some respondents from dairying regions in WA identified supermarket milk pricing as a significant issue for farmers in their areas.

3.2 Challenges for rural WA Local Governments and Communities

The previous section focussed on the difficulties facing WA’s farmers. However, the agricultural downturn also has serious implications for the state’s Local Governments and their communities.

Responses to the Association’s farming issues survey indicated the agricultural downturn is likely to have a significant impact on the financial sustainability of Local Governments. In such difficult economic circumstances it is difficult for Local Governments to increase rates because of the community’s diminished capacity to pay. Furthermore, while it is difficult to raise additional revenue, Local Government costs are constantly increasing. Potential revenue shortfalls often have to be met through cuts to services or allowing infrastructure to deteriorate.

There are also short term impacts on Local Governments finances. Several respondents indicated their revenue was likely to be affected because some farmers may be unable to pay rates or may be delayed in making rate payments.

Survey respondents were very concerned about the local economic impact of the agricultural downturn. A number of Local Governments indicated the importance of farming to businesses in their community – when there is economic uncertainty and decreased incomes for farmers, there is a flow-on effect in the community as spending falls. The two responses below are typical:

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o [There is an] economic impact on commerce and business, if the farmers are not making money they are not spending in the local businesses.

o When farmers have no money it flows through to local business and community morale falls

Population loss was identified by Local Governments as both a symptom of and a contributor to local economic difficulties. As opportunities for farmers and local business people decrease, this may lead to a declining population. These decreases in population then contribute to economic losses as a result of decreased spending in the community.

A decreasing population is particularly problematic for Local Governments. The expenditure required to maintain public goods, such as a road or a community hall, generally remains the same, regardless of the number of ratepayers. As the population declines, the resulting tax burden must be shared among fewer households. An increasing rates burden and decreasing services add further incentives for people to leave the area.

The economic and population effects identified by Local Governments can be represented as a potential cycle of decline. The diagram below is a stylised representation of the cycle, and depicts decreases in Agricultural incomes as the event that ‘kick-starts’ the cycle:

Figure 3.3 Cycle of decline in rural communities

Most of the population loss in rural areas is due to an exodus of younger people. Therefore, rural communities also need to contend with ageing communities. Once again this is critical for local businesses, since retirees and older workers tend to spend less money in the community than younger workers. Additionally, some respondents commented that as the number of young people in the community decreased, levels of volunteering tended to decline.

Social capital in many communities has suffered as a result of the challenges faced in rural WA. Several Local Governments mentioned that general morale was low in their communities, which also contributed to decreased levels of volunteering. Many respondents also indicated that financial pressures for farmers were causing mental health issues such as stress and depression. Consider the examples below:

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o The community feeling is generally ‘down’. As the industry gets worse, this could change into individual depression, which is already at a high rate, which could end up with quite large consequences.

o Depression, anxiety and financial pressures are being experienced… people become detached or no longer involved in community activities.

o [The] farming community is slowly withdrawing from ‘town life’. Community appear to be frustrated and cranky most of the time.

o An issue that should be mentioned is ‘stress and depression’ (mental health issues) related directly to a poor farming season – at its worst, suicide in some cases.

The morale of rural areas tended to vary according to how badly the communities were affected by the factors discussed in section 2. For example, Local Governments in the north-eastern Wheatbelt region were the most likely to indicate that uncertainty and stress levels were an issue in their communities.

3.3 Views on farm assistance programs

Rural Local Governments were positive about some aspects of Federal Government assistance to farmers. Concessional loans were seen as especially useful, though many respondents expressed disappointment at the delay in settling loan arrangements:

o This announcement was made several months ago, but to date no details have been received, and farmers have not been able to benefit from it.

o The problem is financial – if farms could get long term loans at reasonable interest rates, that would go a long way towards making them more viable. The Federal Government has made these funds available but the State Government is playing politics and is withholding the release of funds by putting impediments and red tape in the way.

The FMD scheme and tax concessions were seen as an effective form of assistance, though many respondents stated that they were only useful to farmers who were making a profit.

Several respondents suggested Federal assistance measures, particularly the ECRP, were poorly targeted. The criteria for assistance were often seen as too prescriptive and inflexible.

Many respondents applied the same criticism to aspects of the State Government’s recent Wheatbelt assistance package. For example, a number of respondents pointed out that the $25,000 financial support payments were only available to farm businesses with equity of 55-65%. Local Governments also pointed out the financial support payments and the $20,000 farm exit support grants were too small:

o $25,000 [financial support payment] per farm – insignificant to debt levels. $20,000 [farm exit support grant] too low to assist exiting.

o $25,000 is barely a month’s interest rates

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o $25,000 will barely pay one loan repayment. $20,000 won’t do much to get you off the farm.

o Every bit helps but the assistance is only small compared to the problems.

Respondents were generally more positive about the assistance provided for regional counselling and support services, and community support grants:

o [These aspects of the assistance package] are fine as they are broad based community support and should be able to assist local communities.

o Additional regional counselling and support services are and will be required for some years. It is understood that mental health (particularly men’s) is a growing concern for the Wheatbelt.

o [The funding for regional counselling and support services is] positive and ongoing services are essential, e.g., Wheatbelt Men’s Health. [Community support grants are also] positive – social interaction and support paramount.

The WALGA farming issues survey also asked if the Federal Government and State Government should be providing more assistance to farmers in WA. Most respondents indicated that farmers required greater support, though there was significant variation regarding the types of assistance that should be provided. Some of the more common suggestions for government intervention included: provision of low interest loans, underwriting a multi-peril crop insurance scheme, reducing the tax burden for agricultural businesses, and the removal of red tape (particularly for live export farmers).

A number of respondents noted the extent of government assistance in other countries and a few suggested Australia needs to use similar types of support for its farmers, such as the use of export subsidies. Other respondents suggested measures more consistent with current Australian policy, such as increasing government contributions to R&D, providing farmers with better education and training, and seeking greater access in international markets.

A few respondents also noted the importance of transport infrastructure to the agriculture industry. In areas where tier 3 rail lines were not going to be maintained, it was suggested that roads would need to be improved.

3.4 Views on assistance for rural Local Governments

Somewhat predictably, given the evidence on Local Government financial sustainability presented earlier, a substantial proportion of respondents indicated they had funding and infrastructure concerns. Several respondents suggested the other levels of government should be providing more funding to Local Governments to address their low fiscal capacity, especially during periods of economic hardship in their area:

o If the seasons continue to be poor, Local Governments will no doubt be affected in the Wheatbelt with non-payment of rates and then reduced ability to service the

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community. [There should be an] increase to FAGs in affected areas to subsidise the loss of rates.

o It is difficult to raise rates to levels to continue providing services when farmers are in difficult times. Federal/State Government should provide assistance by providing rate assistance grants.

o If a shire rates subsidy was introduced it would help farmers and Local Governments. The grant the Shire received for the drought funding two years ago was used to run free community events and was a great success.

Other respondents felt rates subsidies should instead be provided to ratepayers as a way of relieving cost pressures in the community:

o A rates subsidy would provide equitable assistance to all primary producers. This could be extended to all businesses in rural communities.

A number of Local Governments felt that the State Government should reduce cost shifting and increase the provision of essential services in rural communities:

o Local governments provide services that their population believes it needs. State and Federal are removing services such as medical, landcare, police, education, etc – core functions of those tiers of government. Local Government is now picking up that cost. Economic return for basic services will rarely justify their continuation, however social return will.

o Reducing cost shifting would be a good start. Local Governments are spending lots of time and money to encourage and retain doctors to ensure the safety of our community.

Many respondents’ comments were indicative of the significant infrastructure gap that rural Local Governments face. Again this meant Local Governments would require more funding from other levels of government:

o Our hope as a small country council is that the local component of the CLGF will be maintained at 50% at least until we catch up with some of our building replacement and maintenance.

o Over the last few years, Local Governments have been required to undertake a fundamental re-assessment of their long term sustainability. These plans are generally exposing, especially in rural areas, a gap between required asset maintenance and what is actually being spent. Recently the Department of Local Government recommended restraint in applying rate increases to pay for such gaps. Roads are an obvious asset needing infrastructure work, this is an obvious place to start with grant funding, especially as it is now identified.

In some cases respondents also pointed out that infrastructure projects had the benefit of providing additional economic activity in their area:

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o With more money or grants we could do more. Build better roads or maintain them at a high standard. Do more infrastructure work, this would help with employment and help keep people on farms. We are already doing a bit of this, trying to help some out.

o [There should be] more funding for roads and infrastructure and community building activities in hard times.

4. Long term outlook and recommendations

This section of the position paper discusses two potential versions of the long-term outlook for rural WA. Additionally, this section also presents several recommendations that would improve the sustainability of rural Local Governments and their communities.

4.1 Long term implications for WA’s rural communities

Rural communities continue to experience several unfavourable trends. In the worst affected areas, such as parts of the Wheatbelt, communities must contend with declining and ageing populations, low economic growth, low morale, and poor farming seasons. If nothing is done to mitigate current economic circumstances, then these trends could be expected to continue.

Are current economic and climatic conditions in rural WA likely to continue? Long term national and global economic conditions are difficult to predict. However, given Australia’s mineral wealth and high global demand for these resources, it is likely the Australian dollar will remain high for some time, at least compared to historical levels.

Climatic conditions are highly variable from year to year. Nonetheless, unfavourable seasons, at least for some areas, may become more common as the effects of climate change worsen. At the very least, a potential trend towards higher temperatures and lower rainfall further adds to the uncertainty that farmers face.

Since there is a strong possibility that current economic and climatic trends could continue, this suggests the future of WA’s rural regions could be one of: a few very large corporate and foreign owned farms; an agricultural workforce mostly made up of wage earners and contractors rather than self-employed farmers; sparsely populated, dying towns; and ineffective, poorly resourced Local Governments.

Of course this is only one possible future. Though the challenges rural WA faces may be damaging if they are not confronted, it is also highly likely that these challenges can be managed and overcome through foresight, strategic thinking and planning. If farmers, government, business and communities respond appropriately, the potential of WA’s rural areas could be realised. Indeed, another possible future for rural WA could involve: vibrant towns with diverse economies; a mix of farm sizes and ownership structures; capable, well- resourced Local Governments; and highly productive transport infrastructure.

All levels of government in WA have a role to play in realising this vision. For example, the Federal Government and WA State Government should work together to make low interest loans available to farmers (note these loans are already available to farmers in Victoria and Queensland). These levels of government would also do well to implement some of the

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suggestions made by WA Local Governments (as discussed in section 3.3), such as increasing funding for agricultural R&D.

Local Governments can improve the outlook for WA agriculture by providing an environment where farmers, businesses and the community can succeed. This rests on rural Local Governments being able to provide the infrastructure and services required for a community to build social capital and for the local economy to provide employment and sustainable incomes. However, as a sector, Local Government has less power to raise revenue than other levels of government. And within the sector, it is generally rural Local Governments that have the lowest fiscal capacities. Therefore, it is clear that rural Local Governments will require more assistance from other levels of government if they are to perform their functions effectively.

4.2 Recommendations

This position paper has provided ample evidence that conditions for WA’s farmers are extremely challenging. Understandably, Local Governments in rural WA are seeking assistance to support their communities through this difficult time. If rural Local Governments are provided with a sufficient level of funding and resources, they will be able to provide the services and infrastructure that meet the expectations of their communities. This will also remove the need for Local Governments to draw further on their area’s fiscal capacity, providing relief from at least one source of cost pressures for farmers and businesses in rural communities. For this reason, the Association makes the following recommendations to increase general funding to rural Local Governments:

RECOMMENDATION 1 That the Federal Government increase the General Purpose Grant component of Financial Assistance Grants to improve the financial sustainability of rural Local Governments.

The recent review of the CLGF, as well as feedback received from Councils, indicates that the infrastructure gap is a significant challenge for rural Local Governments. With this in mind the Association makes the following recommendations:

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RECOMMENDATION 4 That the Federal Government makes the Roads to Recovery program permanent to provide certainty for Local Government’s long-term planning and budgetary considerations.

RECOMMENDATION 6 That the WA State Government increase the level of funding it provides for Local Government roads, particularly in the regions of WA with relatively lower economic growth.

RECOMMENDATION 7 That the WA State Government increase the quantum of the Country Local Government Fund.

In addition to the above measures, it is appropriate that rural Local Governments have adequate funding to provide essential services and support for their communities. Therefore, the Association makes the following recommendations:

RECOMMENDATION 8 That the WA State Government provide additional funding to assist rural Local Governments in providing essential services for their communities.

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5.6 Review of the Roads to Recovery Program (05-008-03-0002 MM & MB) By Marissa MacDonald, Policy Officer Transport and Roads and Mark Bondietti, Policy Manager Transport and Roads

Moved: Mayor R Yuryevich Seconded: Cr C Mitchell

That WALGA’s response to the Department of Infrastructure and Transport review of the Roads to Recovery Program will highlight the following points:

i. That the Roads to Recovery program is critical to the ability of Local Governments to maintain a road network to meet the needs of the economy and community; ii. Support the continuation of the current principles, structure and payment arrangements of the Roads to Recovery program; iii. Recommend that additional flexibility be provided for the way in which the Reference amount is calculated and that where expenditure of the Council’s own funds on road construction and maintenance exceed the minimum amount required in any year, the additional amount be able to be carried forward to subsequent years of the Program; and iv. That consideration is given to upgrading the website to streamline the entry and editing of project information.

RESOLUTION 248.4/2013 CARRIED

In Brief  The Department of Infrastructure and Transport has initiated a review of the Roads to Recovery Program.  Feedback has been requested from each Local Government Association in each State or Territory to contribute to a review of the Roads to Recovery funding conditions and guidelines.  WALGA consulted Local Governments and feedback provided shows a high level of satisfaction with the current arrangements.

Attachment Nil.

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Background The Roads to Recovery Program (R2R) was introduced in 2001 by the Federal Government and provides an annual funding allocation to all Local Governments in Australia. Funding is paid directly from the Federal Government to Local Governments and Local Governments determine the road projects for which the funding will be used. The Department issues conditions of funding and guidelines to Local Governments to ensure that funds are used appropriately. The program operates under the Roads to Recovery Act 2000 and Part 8 of the Nation Building Program (National Land Transport) Act 2009.

The Federal Government announced that the R2R would be extended from 1 July 2014 to 30 June 2019. Based on the current funding allocation this will provide $256 million to Western Australian Local Governments over the five year period.

The Department of Infrastructure and Transport has initiated an evaluation of the R2R Program. The review focusses on making improvements to the current program funding conditions and guidelines for application in the 2014-2019 Program. The Department has engaged with the Local Government Association in each State and Territory to collect feedback from Local Governments.

Comment Feedback was requested from Local Governments on the funding conditions and guidelines for the R2R program through Local Government News, discussion at most Regional Road Groups and a Fax-back. There were 12 written responses received from Local Governments.

The responses received showed there was generally a high level of satisfaction with the current arrangements. There were a few minor suggestions for improvements.

The majority of respondents supported the principle that Local Governments continue to invest funds from their own sources in the road network. However, the lack of flexibility within the current arrangements to respond to specific circumstances is an issue highlighted by some Local Governments. Several suggested changes to the way in which the “Reference amount” applicable to a funding recipient is calculated were provided. In each year the Local Government is required to spend from its own sources at least the “Reference amount” on the construction and maintenance of roads. The "Reference amount” is calculated by averaging actual expenditure in the five year period prior to commencement of the program which is termed the reference period Local Governments suggested that the reference period should be more flexible with the option of it being calculated back from the current year rather than the year the program commenced.

Some Local Governments have found that expenditure of the Local Government’s own source funds on roads exceeded the “Reference amount” by a significant amount in one year and recommended that the R2R Funding Guidelines be amended to enable this excess to be carried forward in the event that expenditure on roads from their own sources falls below the “Reference amount” in a subsequent year of the Program. Over the five years of the Program, Local Governments would still meet the overall requirement to at least maintain expenditure on road construction and maintenance from their own funds.

There was a mixture of responses regarding payment scheduling of the R2R funds. Currently payment to Local Government can be made in advance and it is a condition that funds are spent within a six month timeframe. An Auditor General report of the R2R program highlighted that in some cases funds had not been spent within the specified timeframe.

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Some Local Government respondents are satisfied with the current payment schedule. Some Local Governments expressed a preference for advance payment with a more flexible timeframe to use the funds. There were suggestions for there to be a 40% advance payment with the rest being paid upon completion of the works.

Most of the Local Governments which responded are satisfied with the current process for submitting and amending project details through the website. Some Local Governments suggested that this can be improved by including cut and paste options and tick boxes on the application and improving the navigation of the website.

In summary, Local Governments have indicated strong support for the R2R Program and the existing Funding Guidelines. This will be strongly emphasized in all discussions with the Department of Infrastructure and Transport and their consultants. The proposed changes identified are sought to make a sound program even more effective from a Local Government perspective. The text of the final submission will be reviewed by the WALGA President and Infrastructure Co-chairs prior to submission to ALGA and the Department of Infrastructure and Transport.

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5.7 Heavy Vehicle Charging and Investment Reform – Options Development Submission (05-088-03-0001 PS) By Paul Schollum, Policy Manager Economics

Moved: Cr J Brown Seconded: Cr D Thompson

That the Association’s interim submission to the ‘options development’ stage of the Heavy Vehicle Charging Investment Reform (HVCI) Project be endorsed.

AMENDMENT

Moved: Mayor R Yuryevich Seconded: Mayor D Ennis

1. That the Association’s interim submission to the ‘options development’ stage of

the Heavy Vehicle Charging Investment Reform (HVCI) Project be endorsed subject to Local Government retaining the ability to levy and collect charges as well as negotiate with local road network users. CARRIED UNANIMOUSLY

MOTION AS AMENDED WAS PUT AND

RESOLUTION 249.4/2013 CARRIED

In Brief  The current heavy vehicle pricing regime (registration charges and fuel excise) is considered to result in inefficient outcomes. The HVCI reforms aim to deliver greater productivity within freight transport through improved access for heavy vehicles and more efficient investments in the road network  The HVCI project is now developing an integrated charging, funding and investment framework and is also working on implementation strategies for the proposed reforms. This work is part of the Regulatory Impact Statement (RIS) which is expected to be released for public comment at the end of 2013.  The current focus of the project’s consultation activities is supply side reforms. These focus on the ways in which road providers, including road agencies such as Main Roads WA and Local Governments, are funded and operate in delivering road services. In June 2013, HVCI released an ‘Options Development Discussion Paper’ to seek feedback on the supply side reform process. The Association’s made an interim submission in response to this discussion paper (please see attachment).  As the major provider of road infrastructure, Local Government should take an active role in identifying the impacts of proposed regulatory reform and ensuring proposed changes lead to sustainable funding and delivery arrangements for local roads used by heavy vehicles.

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Attachment Interim submission to the HVCI Project’s ‘Options Development Discussion Paper’

Policy Implications The following policies and submissions have been endorsed by State Council:

June 2006 Submission to the Productivity Commission Inquiry into Road and Rail Infrastructure Pricing March 2009 Submission to the National Transport Commission on Charging Operators for Carrying Extra Mass on the Road Network December Submission to the National Transport Commission on Road Pricing 2010 Options for Heavy Vehicles

At a National level, ALGA policy is supportive of a road user charging regime that creates a direct link between road use and funding provided that:

 the same system and pricing mechanisms apply to local and State roads;  total funding for Local Government roads is at least maintained;  acknowledges the need for community service obligations to recoup sufficient funds to provide adequate maintenance for roads in rural and remote areas where vehicle counts are low; and  there is a corresponding offset in the current tax burden through fuel excise.

Background In 2006, an inquiry by the Productivity Commission found that the current road charging and investment flow model did not promote the efficient usage and provision of road infrastructure for heavy vehicles. The Commission found that the ‘price’ paid by heavy vehicles for using the road network did not reflect the road maintenance costs incurred.

The inquiry found three areas of inefficiency:

 Current charges (registration and fuel excise) do not provide signals to road users about the costs of using particular roads, or to road providers regarding the demand for particular roads  Current charges are not linked to road expenditure, which can lead to inefficient decisions and encourage public sector road providers to restrict access  Government provision of road infrastructure is unlikely to provide the necessary incentives for providing road infrastructure services efficiently.

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As a result of the Commission’s inquiry, the Council of Australian Governments (COAG) set up the COAG Road Reform Plan (CRRP) in 2007 to review the existing heavy vehicle charging regime and to investigate alternative charging models.

The CRRP completed a feasibility study into alternative charging and funding arrangements for heavy vehicles in 2011. The study identified that while changes to the way in which heavy vehicles are charged for use of the road network may result in some efficiency gains, the vast majority of the benefits would arise from reform of arrangements for funding, provision and use of roads. As the major provider and funder of the road network, this matter is of significant interest to Local Governments. The CRRP recommended broadening the scope of the reform to integrate user charges with investment in roads. COAG endorsed this recommendation in July 2012. The CRRP was then renamed Heavy Vehicle Charging Investment Reform (HVCI) Project to reflect the increased scope of the project.

Local Government has been involved in HVCI consultation so far through the Transport Consultative Forum (TCF). The TCF is an advisory group established to inform the HVCI Board on significant issues for the heavy vehicle industry, Local Government and the business community in relation to charging and investment reform. WALGA and LGAQ both have a representative on the TCF. Additionally, the CEO of ALGA is a member of the HVCI Board.

The HVCI project is planning to release a draft Regulatory Impact Statement (RIS) at the end of 2013. The final RIS is expected to be delivered to ‘the Prime Minister and State Premiers at a COAG meeting in 2014’.

The current focus of the project’s consultation activities is supply side reforms, that is, how road agencies are funded to deliver infrastructure and services, and how decisions are made about the level of service provided and the investments made. In June 2013, HVCI released an ‘Options Development Discussion Paper’ to seek feedback on the supply side reform process14.

Topics covered by the discussion paper included:

 The merits of national regulation and investment coordination compared to carrying out these functions at the jurisdiction level  Cost allocation between heavy and light vehicles  Community Service Obligation (CSO) funding for regional roads where user charges would not cover the costs of providing these roads  Whether the economic regulator should make access decisions  Defining the network in terms of service levels  Whether a historical or forward looking cost base is preferred  Whether regional groups are the best way to include Local Governments in the heavy vehicle planning process.  The ‘preferred path’ to implementation of reforms

Comment Western Australian Local Governments spend well over $600 million each year maintaining, renewing, upgrading and expanding the road network. About 45% of this expenditure is funded by the State and Federal Government (excluding the Perth metropolitan area over 62% of road expenditure is funded by State and Federal Governments). The annual Report on Local Government Road Assets and Expenditure highlights that current expenditure is insufficient to

14 See http://www.roadreform.gov.au/Resources/HVCIReports/HVCIDiscussionPapers.aspx

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maintain the road network in its current condition. Reform of road funding arrangements for heavy vehicles is of major importance to WA Local Governments. Road user revenues, particularly from fuel excise, are not directly linked to public expenditure on roads.

The HVCI’s discussion paper provided alternatives on several aspects of road investment reform and sought feedback on these options. The Association’s submission, which is attached for State Council consideration, provides responses to the topics of most relevance to Local Governments.

The key points made in the submission were:

 The Association’s preference for a decentralised regulatory and investment structure.  Heavy vehicles should pay the incremental costs that result from their use in addition to an appropriate share of capital costs (with heavy vehicles’ share of capital costs varying according to the benefit they derive from this infrastructure).  Where roads cannot be fully funded by users, heavy vehicles should contribute to incremental costs and a share of common costs and CSO payments from Government should be used to fund the balance.  The economic regulator should not make access decisions. Instead, this should be done by the road management agency because these decisions require technical and engineering expertise.  The Association believes the approach to defining the network in terms of service levels should provide clear expectations of asset conditions, operational characteristics and investment required for both road providers and users.  The Association preferred a forward looking cost base, but noted that accurately forecasting demand would be a challenge for many Local Governments  Regional groups have an important role to play in the heavy vehicle planning process, but individual Local Governments will still need their own direct relationship with the road investment coordinator for local issues, such as first/last mile access issues.  A phased approach to reform, where components are undertaken incrementally, is appropriate due to the complexity of the road ‘market’.

The Interim Submission had been developed to meet the submission deadline of 2 July 2013. Before the Associations comments were submitted, the Infrastructure State Council Co-chairs & the WALGA President were given the opportunity to provide comments. Support for the Interim Submission was obtained.

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5.8 Community Emergency Risk Assessment Tool (03-044-01-0001JL) John Lane Coordinator Emergency Management Services

Moved: Cr J Brown Seconded: Cr C Mitchell

1. That the Community Emergency Risk Assessment Tool be endorsed for further development as the preferred emergency risk management tool for Local Government in Western Australia. 2. That WALGA seek the support of the State Emergency Management Committee for the development of the Community Emergency Risk Assessment Tool database and implementation across the Local Government sector.

RESOLUTION 250.4/2013 CARRIED

In Brief  In February 2013, the Department of Local Government released a Circular n° 05-2013. Local Government (Audit) Amendment Regulations 2013. The amendments require local Government to review, at least once every two years, the appropriateness and effectiveness of the Local Government's systems and procedures in regard to risk management, internal control and legislative compliance.  WALGA Emergency Management Services has developed and trialed the Community Emergency Risk Assessment Tool (CERAT) to support Local Government risk management systems and procedures.  The six month trial, supported by the State Emergency Management Committee (SEMC) demonstrated its effectiveness to meet risk management requirements prescribed through regulation. WALGA is keen to seek further funding from the SEMC to develop the CERAT for broader Local Government implementation.

Attachment Report to State Emergency Management Committee - “Community Emergency Risk Assessment Tool (CERAT) Trial”.

Policy Implications March 2013 State Council Resolution, Building Local Government Capacity in Emergency Management Project Advocacy Strategy provided in part:

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Issue 5: Strengthen the risk assessment and management approach to emergency management. Strategy 7.1 Advocate for the alignment of the identification of and management of corporate risk and emergency management risk.

Budgetary Implications Nil.

Background Local Government in Western Australia is a key participant in the State’s emergency management framework and has responsibility along with the Hazard Management Agencies for identifying and assessing natural and technological hazard risk, where it has a potential to impact the community.

In February 2013, changes to the Local Government (Audit) Regulations1996 were introduced for reporting on risk management activities by Local Government. See Circular n° 05-2013. Local Government (Audit) Amendment Regulations 2013.

The amendments extend the functions of Local Government Audit Committees to include reviewing the effectiveness of the local government's systems in regard to risk management, internal control and legislative compliance.

Specifically, the amendments require a local government's Chief Executive Officer to review, at least once every two years, the appropriateness and effectiveness of the Local Government's systems and procedures in regard to risk management, internal control and legislative compliance, and provide a report of that review to the Local Government's Audit Committee for their consideration.

In addition to the legislative change, the State Emergency Management Committee (SEMC) introduced Policy Statement 2.9 Risk Management ( refer to www.semc.wa.gov.au_policies) further increasing the requirement for reporting by the Local Government sector.

Within the Local Government sector, the application of risk management principles as they apply to emergency management has been ad hoc at best. The introduction of the Australian/New Zealand International Organizations for Standardization (ISO) Risk Management (ANZ ISO31,000:2009) in 2009 provided generic guidelines for the design implementation and maintenance of risk management processes throughout an organization.

This approach to risk management enables all strategic, management and operational tasks of an organization to be aligned to a common set of risk management objectives.

Since the ISO31:0000 was introduced; one of the challenges for Local Government continues to be how to include emergency risk management principles across the corporate risk management framework.

The Commonwealth Government tried to address this confusion through the development of the National Emergency Risk Assessment Guide (NERAG) in 2010. The result was a unwieldy document that did not easily translate. This document is currently under review.

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The State Government has provided funding to Local Government to conduct community based risk assessments through the Agencies Working at Reducing Emergencies (AWARE) program. Many of the State’s 140 Local Governments have availed themselves of this funding assistance, however most have reflected that the outcomes have not meet their need to embed ERM in their corporate risk process.

Where it was identified that a Local Government was not managing its corporate risk, usually their emergency management risk was not identified either. Alternately a Local Government with a robust corporate risk framework found it difficult to incorporate Emergency Risk Management principles.

To further support members to meet their obligations, the WALGA Emergency Management Services Coordinator recently travelled to Victoria and met with State Emergency Services, Emergency Management Planning Office to discuss the Community Emergency Risk Assessment Tool (CERAT) developed for Victorian Local Governments to support their risk management systems and procedures.

The Community Emergency Risk Assessment (CERA) tool provides a simple, efficient yet powerful approach to community centred emergency risk assessment. The program was originally developed by Victorian State Emergency Service (VicSES) through funding obtained through the National Disaster Resilience Program (NDRP).

Comment WALGA has adapted the Victorian CERAT for the Western Australian environment and trialled the WA version with the City of Swan; City of Rockingham and the Shire of Halls Creek to ensure the tool is fit for purpose and to test the robustness of the system for Western Australian adoption.

The tool has been designed to follow the international standard for risk management ISO 31000:2009 Risk Management. The tool allows users to select natural and technological risks, input critical risk based data, request and collect risk based data from other emergency management agencies, track mitigation projects, and identify project owners and completion dates.

The CERAT is designed to assist Local Emergency Management Committees (LEMCs) by informing development of their local emergency management arrangements. The CERA also assists the Local Government to identify hazards that present a high risk to their community and programs that will assist in protecting the community.

The CERAT has also been mapped against the State Emergency Management Committee Capability Framework and meets the requirements for Local Government reporting against risk management.

The CERAT continues to be well received by Local Government, State emergency management agencies including the Department of Fire and Emergency Services (DFES), Water Corporation, Western Power, the State Emergency Management Committee. The insights derived from the CERAT pilot process provide invaluable input to planning and response activities of emergency management agencies, in particular, CERAT may reveal certain communities, facilities or locations that may require special consideration and/or support in addressing particular emergency risks.

Equally the data may help reveal where investments in improved controls, collaboration and preparedness may yield significant benefit and return on investment – potentially reducing the total cost of risk for the State.

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WALGA seeks State Council endorsement to undertake further development of the CERAT as the preferred emergency management risk tool for Local Government.

To do this WALGA will seek funding from the State Emergency Management Committee (SEMC) to develop the database system required to host the CERAT tool and roll-out of the CERAT database to Local Government via emergency management districts. It is envisaged that the CERAT Tool would be centrally hosted and Local Government would be responsible for imputing their data to the system.

The following table reflects the proposed development and implementation process:

ACTION STRATEGY TIMEFRAME

1. State Emergency  Completion of the September 2013 Management initial trial within the Committee Approval three selected Local Governments  Prepare a project report and agenda item for SEMC September meeting  Presentation of the CERAT at the SEMC meeting 2. Acquire  Develop a project plan September October 2013 development and business case funding  Progression of the business case through SET  Appoint a project management team  Apply for funding through NDRP 3. Database software  Map output November 2013- June development requirements 2014 –  Develop centrally managed database  Develop data management processes with State emergency management agencies

4. Trial and roll-out of  Staged roll-out of the July 2014 - December the CERAT CERAT database by 2014 Database emergency management district  Local Government officer and Local Emergency Management Committee training

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Item 5.8 - Attachment

State Government

Local Government Emergency Services

CERA

Community

Report to the State Emergency Management Committee Community Emergency Risk Assessment Tool (CERAT) Trial

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Contents Background ...... 87 The CERA program and process ...... 87 CERA Risk assessment framework ...... 88 The CERA Tool (CERAT) 90 Beneficial attributes of the CERAT ...... 90 The CERA trial ...... 92 State Capability Framework ...... 93 Ongoing CERAT development ...... 94 What should the database deliver? ...... 94 Ongoing management of local government risk ...... 95 Ongoing benefits ...... 95 Reporting risk to the community ...... 96

Table of Figures Figure 1 CERA Risk Assessment Framework ...... 89 Figure 2 Extract from the State Capability Framework (draft) ...... 94 Figure 3: CERAT Risk representation (Radar graph) ...... 97 Figure 4 CERAT Risk representation (Heat Map) ...... 98

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1. Background Local Government in Western Australia is a key participant in the State’s emergency management framework and has responsibility along with the Hazard Management Agencies for identifying and analysing natural and technological hazard risk as it has a potential to impact their local community.

Emergency management planning at the local level should always commence with a robust and defendable emergency risk management process and up until February 2013, there has been no legislated requirement for reporting on risk management activities for Local Government. On 8 February 2013, the State legislated changes to the Local Government Act Audit Regulations in particular the inclusion of Regulation 17 requiring the Chief Executive Officer of a Local Government to report to the Council’s Audit Committee concerning the management of risk. In addition the legislative change, the State Emergency Management Committee (SEMC) introduced Policy Statement 2.9 Risk Management further increasing the requirement for reporting by the Local Government sector.

Within Local Government sector, the application of risk management principles as they apply to emergency management has been ad hoc at best. Since the introduction of the ISO 31,000:2009 Standard for Risk Management there has been a certain amount of confusion as to the preferred method of risk assessment. The Commonwealth approach was to produce the National Emergency Risk Assessment Guide (NERAG) a high level and somewhat difficult document to translate to community level natural risk assessment.

Local Governments have for some years been funded by the State through the Agencies Working at Reducing Emergencies (AWARE) program to conduct community based risk assessments. Many of the State’s 138 Local Governments have availed themselves of this funding assistance to produce a plethora of paper based risk assessments that have little or no effect on the management of risk by the Local Government. Where a Local Government was not managing its corporate risk, there would be little or no chance that it would manage emergency management risk, alternately a Local Government having in place a robust corporate risk framework in place found it very difficult to incorporate the two largely because they had been assessed against vastly different criteria.

2. The CERA program and process The Western Australian Local Government Association (WALGA) as the peak body for Local Government in WA supports and assists Local Government in addressing their emergency management responsibilities outlined in the various pieces of legislation and policy in force in Western Australia.

As a key platform activity of emergency management planning, emergency risk management provides the Local Government and the community with a clear understanding of its risk profile and provides the building blocks with which to build concise and relevant Local Emergency Management Arrangements.

Emergency management in Western Australia is undergoing a period of great change and in keeping with those changes, Local Government are proactive in ensuring that as a sector with key responsibilities in emergency management we maintain high standards and align with State policy.

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The Community Emergency Risk Assessment (CERA) provides a simple, efficient yet powerful approach to community centred emergency risk assessment. The program was originally developed by Victorian State Emergency Service (VicSES)using the expertise of risk managers Ernst and Young under funding obtained through the National Disaster Resilience Program (NDRP). The process has been designed around the international standard for risk management ISO 31,000:2009 and incorporates an Excel Spread Sheet tool. WALGA has obtained permission from the VicSES to trial and modify the program for Local Government in Western Australia.

Since WALGA EMS commenced working with the CERA product, we have made significant functionality and content changes in order to ensure a seamless fit with the State’s risk management framework for emergency risk management.

Community (community groups and business) – Community and business participation in the CERA process is encouraged and helps create an awareness in the community of emergency related risks.

Local Government – The CERA process is designed to assist Local Emergency Management Committees (LEMC) by informing development of their local emergency management arrangements. The CERA also assists the Local Government to identify hazards that present a high risk to their community and programs that will assist in protecting the community.

Emergency Management Agencies – The insights derived from the CERA process provide invaluable input to planning and response activities of emergency management agencies, in particular, CERA may reveal certain communities, facilities or locations that may require special consideration and/or support in addressing particular emergency risks.

State Government – Local level perceptions and assessment of emergency risks and controls, when aggregated, can provide invaluable insights and information for decision making at State level. In particular, the data may help reveal where investments in improved controls, collaboration and preparedness may yield significant benefit and return on investment – potentially reducing the total cost of risk for the State.

The key to the CERA process’s success will be to ensure that up-to-date and relevant hazard management information is available. Government agencies have been contacted throughout the trial of the CERA to supply this information and have expressed a desire to have the information centrally located and managed so as not to impact too heavily on their time. The challenge will be in the management of data and the method by which each HMA provides that information. Data management and the program for further development of the CERA are discussed later in this paper.

3. CERA Risk assessment framework It is vital for the success of any community risk assessment process that all parties are equally involved from the outset. The LEMC as the committee established for its emergency management focus will be responsible for the overall management of the CERA process largely because of the expertise to be found within such a committee. The following diagram in Figure 1 outlines the various responsibilities throughout the process.

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1. Establish the Context

The LEMC/local government establishes a project committee from the membership to administer the CERA project. The Project Committee is responsible for:  The conduct of and overall management of the project and report to LEMC  Ensuring the project context is correct  Defines the approach and identifies key participants  Documents the community context with emphasis on those factor impacting its risk profile i.e. topography, social and economic.

2. Risk Identification & Analysis

Through primary and secondary sources of information and data review the risks that may impact on the local community: 4.  Gather information/data relevant to risk within the local government district  Identify new or emerging risks 5.  Identify high risk areas/ communities at risk  Establish hazard specific work groups 6.

CERA Focus CERA 7. 3. Evaluate Emergency Risks 8. Leveraging the outputs of step 2 determine the appropriate type and level of action to be taken i.e. monitoring and/or improvement of controls.  Apply cost benefit analysis as required  Determine which risks may require further, in depth analysis.

4. Treat Emergency Risks

 Implement actions for improving or monitoring controls  Implement actions to improve collaboration with other communities, State and commonwealth agencies  Leverage the results of the CERA to inform the LEMA and other related documents/ processes.

Risk Management Strategies Reporting Mechanisms (Identified by LEMC and reported (Local government risk management through the Local Government framework) Risk Management Framework

Figure 1 CERA Risk Assessment Framework

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The CERA Tool (CERAT)

The CERA tool is essentially a sophisticated spreadsheet that enables the input of hazard specific data collected from Hazard Management Agencies, non-government organisations, business and local government. The data capture reflects the PPRR elements of a specific hazard.

9. Beneficial attributes of the CERAT Local Government Profile

The local government profile provides a space to describe and capture elements of the local community. The information can be captured in two ways:

1. A word based description guided by specific headings

2. A link to the ABS website Local Government Profiles page.

The ABS data is updated automatically but will only be available when the CERAT is connected to the web.

Source of risk selection

The risk selection panel enables the user a selection of up to 20 sources of risk. Sources of risk are divided into six categories:

Natural

Transport related

Human caused

Infrastructure

Technical

Biological

Within each category there is an open selection area where an area specific source of risk might be entered. Each source of risk selected generates a risk specific code or identifier for that risk throughout the CERAT.

While it may be feasible for 20 sources of risk to be identified, initial assessment should enable the list to be trimmed to reflect the sources of risk that will have the greater impact on the community.

The dashboard

The CERAT Dashboard is the centre of the tool from which key information can be entered and manipulated throughout the CERA process. Each source of risk selected is listed along with a ratings panel to be completed during the analysis phase. Other important information such as:

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 Collaboration with other local governments of agencies;  Vulnerable groups;  Facilities at risk;  Communities/towns/localities at risk Are able to be identified as likely to be impacted should the source of risk impact the community or group at risk.

Risk sheets

Risk sheets are data entry points for the user where key information pertaining to prevention, preparedness response and recovery can be entered. The sheet incorporates the following information:

 A risk description  Causal factors  Impacts. The impacts are constructed as risk statements describing the impact the source of risk will have on the element of the community at risk (People, Infrastructure, Social, Economy or public administration) It is essential that the data entered here is obtained from reliable sources before analysis of the risk can be completed. In addition to PPRR information, suggestions as to treatment options can be listed for future reference linked to either cause or impact.

Consolidated actions sheet

Each risk log is connected to the Consolidated Actions (Risk register). This page contains the risk description risk evaluation information and provides a mitigation program management tracker. The PPRR data is retained in the risk sheet.

The heat map

The Heat Map provides a graphic on which each analysed risk is plotted dependent upon its assessed risk level. Each risk’s position on the plot is determined by:

 Its assessed residual consequence (Insignificant, minor, moderate, major, catastrophic); and  The assessed control efficiency (monitor or improve) Navigation tools

Throughout the CERAT are a number of navigation tools that enable the user to easily navigate specified areas of the CERAT dependent upon the current location within the CERAT. Also included is a handy index pane to enable quick navigation between sheets. Each sheet has a return button and a delete information button.

Printability

The CERA is designed to be printed in A3 format due to the amount of information that can be stored. Each sheet can be printed alone or the whole book can be printed in an easily readable format. When a sheet is printed, any navigation button on the sheet is rendered invisible in the printed version. The tool

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is designed primarily to be available to an operator using a desk or laptop computer as opposed to being printed.

10. The CERA trial The CERA process has been trialled with two large city based local governments and one remote local government. The Cities of Swan and Rockingham and the Shire of Halls Creek. The City of Swan and the City of Rockingham are at varying stages of development of their Corporate Risk Management Frameworks while at the Shire of Halls Creek offers the different perspective of being a small organisation disadvantaged by remoteness and staff shortages. As a risk assessment process it was important that it demonstrate compatibility with each local government’s risk management framework or in the absence of a framework could still be managed efficiently.

Throughout the trial we were especially careful to ensure the risk assessment process outlined in the National Emergency Risk Assessment Guide (NERAG) was followed as closely as possible. It was important also to expose as many people as possible to the CERAT to ensure wide acceptability and comment. It has been received by all who have seen it well will some constructive feedback at workshops all of which has enabled the further developments of the CERAT. The current version is at version 0.05 with the tool going to version 1 once released to the respective local governments at the conclusion of their AWARE funded projects.

Agency Input

At the outset of the CERAT trial it became obvious that the process relied heavily on information provided by emergency management agencies and in particular the HMAs. The original CERAT did not provide a mechanism whereby that information could be collected. An Agency Input Tool was developed to guide agencies in the provision of the type of information required which matched the CERAT. Most agencies when approached were a little hesitant at first but as the CERA process was explained they were more forthcoming with information. Some agencies were anxious and rightly so that they would be inundated with requests from across the State should the CERA be rolled out widely. The timing of our approach to emergency management agencies coincided with their obligation to provide similar information to the Sate Risk Register process conducted by the SEMC Secretariat which impacted on the CERA process.

Local government input

Local government information on emergency management risk is essential as this process is mostly about local risk identification and management. Throughout the trial varied levels of information was received from within the local government. Future programs involving the CERA must ensure the information from the local government corporation is accessible. The project management team must have representatives of local government business areas included to ensure this occurs.

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11. State Capability Framework The overarching criteria for a risk management process to be accepted is whether or not it conforms to the accepted framework of the SEMC. SEMP 2.9 Risk Management is the guiding policy and outlines requirements of local government. The SEMC is currently designing the input tool for the State capability Framework. The CERA addresses each of the Key performance Indicators (KPI) in the SEMC Capability Framework for the following reasons:

Relevant hazard research and data analysis

The CERAT provides a mechanism whereby hazard management data from all agencies can be captured. During the trial, two documents were prepared to aid research and analysis of emergency risk. These documents:

 CERA Risk Reference Guide (Web links to Natural and technological hazard information and research sites)  Emergency Event Almanac (Lists major emergency/disaster events occurring in Australia over the past 20 years ) Both documents are to be made available to interested persons.

Risk reduction and mitigation activities

The CERAT through the Consolidated Actions Sheet (Risk Register) enables the LEMC and the local government risk managers to track the progress of activities undertaken by the local government alone or through partnerships with other agencies to modify the impact of risks on the community. Information contained in the CERAT can easily be incorporated into the Capability Framework tool.

Developed and implemented a risk management plan

Because the CERAT is a living document capable of display and use in the committee environment, it is more likely that the local government and the LEMC membership will embrace the process and continually manage their risk. The tool will aid discussion at the LEMC and provide an updatable record of a robust review process. It is anticipated that if the CERA process is widely adopted by local government, the need for costly five yearly risk projects will be unwarranted.

Integrated approach to hazard risk

The CERAT provides for the management of local risks in partnership with other agencies. There is an opportunity to involve agencies around the LEMC table in risk reduction programs to the benefit of all and ensuring that programs suit the local area. Hazard reduction programs commenced at the local level may also inform hazard reduction programs at the State level reducing time, cost and duplication.

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2.2 Risk Treatment Activities Relevant hazard research and data analysis is Hazard and emergency-related risks are treated undertaken, assessed and applied to identify risk through activities and strategies that prevent treatment and mitigation options. Organisations: the occurrence of a hazard and/or reduce its • Enter collaborative research partnerships with impact should it occur. researchers and institutions • Use research tools to collect data and information • Use research outcomes to direct emergency management activities Risk reduction and mitigation activities are conducted that improve community resilience and lessen the likelihood, severity and/or duration of an emergency event. Organisations have developed and implemented a risk management plan to address their identified hazard-related risks which is reviewed and updated annually. An integrated approach to hazard risk management is adopted. Involvement and input from whole of organisation, whole of government and the wider community is sought. Figure 2 Extract from the State Capability Framework (draft) 12. Ongoing CERAT development The tool sourced from VicSES was basic and initial dry run trials uncovered many problems associated with the look and feel of the tool. Currently around 200 hours have gone into the background code and formatting that ensures the CERAT is as robust as possible. The user is able to navigate around the tool, input and change data without interfering with the tool itself.

The CERAT is at best an Excel spreadsheet tool and therefore has limitations as to its application. Currently it is a stand-alone tool that has merit. For State-wide adoption by local government, the CERAT will need to be re-configured using database technology which will transform the base tool into an application that has far reaching benefits not only for local government but for the State’s emergency risk management program.

13. What should the database deliver? It is essential that any database created for use by local government be centrally managed through a web portal. This is an essential element to ensure emergency management hazard based data is both accessible by all users and current. The database would ideally provide the end user with a risk assessment tool. Each local government user could be defined by a sign-in code which would identify that user as belonging to a specific emergency management district e.g. Kimberley, Pilbara and Goldfields – Esperance. Depending on the emergency management district designation, the agency supplied data held within the database would be provided to that user. Hazard specific data could be updated annually and centrally managed ensuring up-to-date information is provided to the end user.

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Local governments across the State engage in community risk assessment projects and these usually occur on average every five years. In all instances, a project of this type requires that government agencies and non-government organisations are required to provide hazard specific data to inform their risk study. In many instances data is provided multiple times to inform risk studies being conducted in neighbouring local governments. This is not only time consuming for the agencies concerned but represents a misuse of agency resources.

Hazard specific information that is centrally managed could be collected annually through an automatically generated email to specified emergency management contacts for the purpose of soliciting an update of currently recorded information. The relevant agency data would then be available to all depending upon the emergency management district.

Through a central reporting system, local governments will be able to enter specific queries to inform their risk management process along with the risk requirements of the State Capability Framework.

14. Ongoing management of local government risk By using the CERA database and assuming that the initial CERA process outlined in table 1 has been progressed, each local government would then embark on a progressive risk management program in- line with the local government’s risk management framework. By managing their emergency management risk in this way, it would ensure that emergency management risk was embedded in the local government risk management framework and conform to the ISO 31,000 requirement of monitor and review.

15. Ongoing benefits Local government across the board often struggle with the concept of emergency management and where it fits within the local government business structure. In most cases local governments tend to assign emergency management responsibility to a specific staff member as an add-on role while some employ emergency management specific personnel. The CERA process accessed through a central database will offer the following benefits:

Local government

 Hazard specific data is provided automatically and is area specific;  The CERA process is easily managed;  The CERA process is a good fit for the local government risk management frameworks;  The CERA database will provide reports to inform the local risk management process;  The CERA database will provide risk information required by the State Capability Framework;  The LEMC will have an increased ability to monitor and manage risk management activities State agencies

 Provide hazard specific data to local government once annually;  One point of contact (WALGA);  Remove the requirement to supply hazard specific data to multiple users;  Reduce the requirement on regional staff to attend multiple risk workshops annually

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SEMC

 All local governments using one risk tool and process;  All local governments having the capacity to inform both State and District about emergency management risk and the local level;  Emerging risks are easily identifiable

16. Reporting risk to the community A question that is often asked both at the State and local level is how the community should be informed of natural and technological hazard risk and in what format should it be presented. From the State’s perspective there would be certain information not for public consumption and a similar argument could be posed at the local level. Within the CERAT a “Radar Graph” and “Heat Map” representation provides a pictorial snapshot of the local risk plotted in such a way as to be easily understood without the detail behind the analysis. Representations of theses graphs are provided in Figures 3 and 4 below.

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Figure 3: CERAT Risk representation (Radar graph)

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Figure 4 CERAT Risk representation (Heat Map)

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5.9 Planning Provisions for Bushfire: Background Paper (05-024-02-0056 CG) Christopher Green, (Planning Coordinator Reform and Improvement)

Moved: Mayor R Yuryevich Seconded: Cr W Barrett

1. The Association’s ‘Planning Provisions for Bushfire’ Background Paper be endorsed;

2. The Association advocates to the Western Australian Planning Commission (WAPC) that, in pursuit of the adoption of consistent, State-wide, minimum bushfire mitigation standards the following points must be satisfied:

A. Within identified bushfire prone areas, the WAPC’s ‘Planning for Bushfire Guidelines’ should be strengthened and given legislative effect, to ensure a minimum standard for proposed developments. The minimum standards should include: i. Strategic planning considerations to avoid increased fire risk to life and property through inappropriately located or designed land uses, subdivisions and development; ii. Further guidance on the design of subdivisions and buildings within bushfire prone areas; iii. Model or standard subdivision and development application conditions to address issues, including but not limited to, the ongoing maintenance of buildings and associated structures, vegetation management, and vendor disclosure; and iv. Policy guidance for dealing with extensions to existing buildings and redevelopments.

B. The statutory instrument used by the State Government in the declaration of bushfire prone areas should ensure that the building construction standards set out by AS 3959-2009 are applied to all new development within such areas.

C. A training and education program must be established about the new requirements for development in bushfire prone areas for all assessors / decision makers.

D. A professional accreditation program should be established to ensure that bushfire attack level ratings and bushfire management plans are developed and assessed by suitably qualified persons.

AMENDMENT

Moved: Mayor H Zelones Seconded: Cr L Short

That the following be inserted after point 2: Bushfire prone areas should be identified and declared by the State Government/WAPC through bush fire prone area maps published by the State

CARRIED UNANIMOUSLY

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THE AMENDMENT BECAME THE MOTION

1. The Association’s ‘Planning Provisions for Bushfire’ Background Paper be endorsed;

A. Bushfire prone areas should be identified and declared by the State Government/WAPC through bush fire prone area maps published by the State.

B. Within identified bushfire prone areas, the WAPC’s ‘Planning for Bushfire Guidelines’ should be strengthened and given legislative effect, to ensure a minimum standard for proposed developments. The minimum standards should include:

i. Strategic planning considerations to avoid increased fire risk to life and property through inappropriately located or designed land uses, subdivisions and development;

ii. Further guidance on the design of subdivisions and buildings within bushfire prone areas;

iii. Model or standard subdivision and development application conditions to address issues, including but not limited to, the ongoing maintenance of buildings and associated structures, vegetation management, and vendor disclosure; and

iv. Policy guidance for dealing with extensions to existing buildings and redevelopments.

C. The statutory instrument used by the State Government in the declaration of bushfire prone areas should ensure that the building construction standards set out by AS 3959-2009 are applied to all new development within such areas.

D. A training and education program must be established about the new requirements for development in bushfire prone areas for all assessors / decision makers.

A. A professional accreditation program should be established to ensure that bushfire attack level ratings and bushfire management plans are developed and assessed by suitably qualified persons.

RESOLUTION 251.4/2013 CARRIED UNANIMOULSY

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In Brief  At its May 2013 meeting, WALGA’s State Council resolved that bushfire prone areas be declared by the WAPC and that consistent State-wide, minimum bushfire mitigation standards be adopted by the WAPC within these areas;  Following this State Council resolution, the Association has produced a Background Paper examining the more specific land-use planning controls for bushfire mitigation.  The paper found that in addition to Keelty’s recommendation that legislative effect be given to the existing WAPC’s ‘Planning for Bush Fire Protection Guidelines’ further amendments are needed to avoid the increased fire risk to life and property through inappropriately located or designed land use, subdivision and development. Attachment Planning Provisions for Bushfire, Background Paper

Relevance to Strategic / Business Plan  Providing strong representation for Local Government  Providing effective leadership for Local Government  Enhancing the capacity of Local Government to deliver services

Policy Implications Nil.

Budgetary Implications Nil.

Background At its May meeting, WALGA’s State Council resolved that in accordance with the recommendations set out in the report by Mr Mick Keelty, A Shared Responsibility that;

1. State Council fully supports the intent of recommendation 3 in the report by Mr Mick Keelty, A Shared Responsibility and strongly advocates that the Western Australian Planning Commission (WAPC) must take responsibility for bushfire risk mapping and land-use planning bushfire mitigation provisions that achieve the following:

o Bushfire prone areas are identified and declared by the State Government/WAPC through bushfire prone area maps published by the State; o Consistent, State-wide, minimum bushfire mitigation standards are adopted and applied by decision making bodies, to all strategic plans, subdivision and development applications, in areas identified and declared by the State as bushfire prone.

2. That the provisions within the current Planning and Development Act (Part 15, Division 1, s256), enabling the Minister to make regulations that prescribe ‘deemed provisions’ in local planning schemes be utilised for the purposes of achieving Point 1, in a consistent and efficient manner; and

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3. That any regulations prescribed for this purpose shall not limit a Local Government’s powers to adopt local planning scheme and policy provisions that exceed the State-wide minimum requirements, if so desired.

Comment In accordance with State Council’s resolution, the Association surveyed members to examine the more specific land-use planning provisions for the purpose of ensuring that the location and design of development is such that it avoids any unacceptable risks to life and property by way of bushfire.

The attached Planning Provisions for Bushfire, Background Paper also highlights the fact that the current statutory status of the WAPC’s ‘Planning for Bushfire Guidelines’, together with the advice set out within the Guidelines is not as robust as the land-use planning controls currently in operation in Victoria and New South Wales. In particular, in Victoria there is greater connectivity between planning controls and building construction standards to ensure that bushfire hazards are taken into account in the development assessment process so that development is appropriately located and designed.

The overwhelming majority of respondents stated that within bushfire prone areas, both land- use planning controls and building construction standards should be applied. The survey results also highlighted the fact that it is important that the statutory framework includes an appropriate strategic planning response to ensure that development is appropriately located, and not just physically designed with the intention of withstanding a bushfire. Respondents also emphasised the need for appropriate bushfire expertise training and a professional accreditation program. Furthermore consistency is also needed between the statutory land-use planning response and all other relevant legislation to remove current disparities and to manage ongoing compliance more effectively and efficiently.

It is recommended that State Council endorse the Planning Provisions for Bushfire, Background Paper, and that, the Association to advocate to the WAPC that, in pursuit of the adoption of consistent, State-wide, minimum bushfire mitigation standards, the feedback from members and the recommendations set out by the paper are satisfied.

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Item 5.9 - Attachment

Planning Provisions for Bushfire

BACKGROUND PAPER

August 2013

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Contents

EXECUTIVE SUMMARY ...... 106 1. INTRODUCTION ...... 107 1.1 Background / Current Situation ...... 107 1.2 Purpose of the Report ...... 108 2. DELIVERING A RESPONSE ...... 109 2.1 National Responses ...... 109 2.2 The Victorian Response...... 112 2.3 New South Wales Response ...... 114 2.4 WA State Government Responses ...... 115 2.5 WA Local Government Responses ...... 117 3. LOCAL GOVERNMENT FEEDBACK ...... 119 3.1 Local Government Survey ...... 119 3.2 Summary, Local Government Survey Findings ...... 123 4. CONCLUSION & RECCOMENDATIONS ...... 124 APPENDIX 1: Local Planning Scheme/Policy Provisions ...... 125 APPENDIX 2: Victorian defendable space standards ...... 127

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Definitions

Bushfire attack Attack by burning embers, radiant heat or flame generated by a bush fire, which might result in ignition and subsequent damage to or destruction of a building.

Bushfire Attack A means of measuring the severity of a building’s potential exposure to ember Level (BAL) attack, radiant heat and direct flame contact, using increments of radiant heat expressed in kilowatts per metre squared, and the basis for establishing the requirements for construction to improve protection of building elements from attack by bushfire.

Building A buffer zone between a bushfire hazard and buildings that is managed to Protection Zone minimise fuel loads and reduce the potential radiant heat levels, flame contact, / Defendable ember and smoke attack on a property. May also known as a fire protection zone Space Effective slope The slope under the classified vegetation in relation to the building.

Ember attack Attack by smouldering or flaming windborne debris that is capable of entering or accumulating around a building, and that may ignite the building or other combustible materials and debris.

Fire Danger The chance of a fire starting, its rate of spread, its intensity and the difficulty of its Index (FDI) suppression, according to various combinations of air temperature, relative humidity, wind speed and both the long- and short-term drought effects.

Flame Zone (FZ) The highest level of bushfire attack as a consequence of direct exposure to flames from the fire front in addition to heat flux and ember attack

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EXECUTIVE SUMMARY

At its May meeting, WALGA’s State Council resolved that in accordance with the recommendations set out in the report by Mr Mick Keelty, A Shared Responsibility that;

 bushfire prone areas be identified and declared by the State Government / Western Australian Planning Commission (WAPC);  consistent, State-wide, minimum bushfire mitigation standards be adopted governing all strategic plans, subdivision and development applications, within bushfire prone areas; and  any regulations prescribed for this purpose shall not limit a Local Government’s powers to that exceed the State-wide minimum planning requirements, if so desired In accordance with State Council’s resolution and the recommendations set out Mr Keelty’s report, the purpose of this paper is to examine possible planning provisions for the purpose of ensuring that the location and design of development avoids any unacceptable risks to life and property by way of bushfire.

It is clear that the current statutory status of the WAPC’s ‘Planning for Bushfire Guidelines’, together with the advice set out within the Guidelines is not as robust as the land-use planning controls currently in operation in Victoria and New South Wales. In Victoria, the ‘Bushfire Management Overlay’ is a more comprehensive planning control instrument, that provides greater connectivity between planning controls and building construction standards ensuring that bushfire hazards are taken into account and therefore development is appropriately located and designed.

As part of this review, the Association conducted a survey to gather feedback from members concerning bushfire mitigation planning provisions. The overwhelming majority of respondents stated that within bushfire prone areas, both land-use planning controls and building construction standards should be applied. The survey highlighted the fact that it is important that statutory framework includes an appropriate strategic planning response to ensure that development is appropriately located, and not just physically designed with the intention of withstanding a bushfire. Respondents also emphasised the need for appropriate bushfire expertise training and a professional accreditation program. Furthermore consistency is also needed between the statutory land-use planning response and all other relevant legislation to remove current disparities and to manage ongoing compliance more effectively and efficiently.

For these reasons, in pursuit of the adoption of consistent, State-wide, minimum bushfire mitigation standards, it is recommended that;

1. In accordance with Keelty’s recommendations, within bushfire prone areas, the ‘Planning for Bushfire Guidelines’ should be given legislative effect to set out the requirement for a minimum standard for development. As part of this process, the advice contained in the existing Guidelines shall be strengthened, in consultation with the Local Government sector, so that the minimum development standard includes: a. Strategic planning guidance with the purpose of avoiding increased fire risk to life and property through inappropriately located or designed land use, subdivision and development;

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b. Further guidance concerning the design of subdivisions and buildings within bushfire prone areas;

2. The statutory instrument used by the State Government in the declaration of bushfire prone areas, shall ensure that the building construction standards set out by AS 3959-2009 are applied to all new development within such areas.

3. A training and education program is established informing all stakeholders of the new requirements for development in bushfire prone areas.

4. A professional accreditation program is established ensuring that bushfire attack level ratings and bushfire management plans are conducted and assessed by suitably qualified persons.

1. INTRODUCTION

 1.1 Background / Current Situation

WALGA has learnt that the Department of Planning (DoP), is considering the preparation of a State Planning Policy for Bushfire protection. Whilst welcoming the Department’s intentions to improve the land use planning bushfire mitigation response, the Association is concerned that the approach being considered will unduly place the responsible for managing bushfire mitigation with Local Government.

In response to these concerns, WALGA has consulted a range of members with significant bushfire prone areas to discuss the issues and challenges facing Local Government and possible land-use planning responses to bushfire mitigation. On the basis of the feedback received, three key principles concerning the management of development in bushfire prone areas were established. These principles include;

• Bushfire prone areas should be declared by the State / Western Australian Planning Commission (WAPC); • There should be a series of consistent State-wide, minimum standards, developed in consultation with Local Government, that development and subdivision proposals within bushfire prone areas should satisfy; and • Local Governments should retain the powers to adopt local planning scheme and policy provisions that exceed the State-wide minimum requirements, if so desired.

In accordance with these principles, on 3 May 2013, WALGA’s State Council resolved that;

1. State Council fully supports the intent of recommendation 3 in the report by Mr Mick Keelty, A Shared Responsibility and strongly advocates that the Western Australian Planning

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Commission (WAPC) must take responsibility for bushfire risk mapping and land-use planning bushfire mitigation provisions that achieve the following:

 Bushfire prone areas are identified and declared by the State Government / WAPC through bush fire prone area maps published by the State;

 Consistent, State-wide, minimum bushfire mitigation standards are adopted and applied by decision making bodies, to all strategic plans, subdivision and development applications, in areas identified and declared by the State as bushfire prone.

2. That the provisions within the current Planning and Development Act (Part 15, Division 1, s256), enabling the Minister to make regulations that prescribe ‘deemed provisions’ in local planning schemes be utilized for the purposes of achieving Point 1, in a consistent and efficient manner; and

Following State Council’s resolution, the Association advocated to the Department of Planning that under the provisions of the Planning and Development Act the Minister declares a series of ‘Deemed Provisions’ to appropriately mitigate the risk of bushfire to life and property within bushfire prone areas. In summary, deemed provisions are considered to be suitable as they;

i. Would provide a uniform set of development control standards in bushfire prone areas;

ii. Have a simple, effective and efficient adoption and modification process, rather than a series of uncoordinated amendments to local planning schemes;

iii. Could be selectively applied to particular local planning schemes for which bushfire mapping is available and progressively extended as bushfire mapping becomes available;

iv. Include bushfire mapping in the regulations themselves avoiding the need to coordinate the inclusion of fire mapping in some other instrument, and;

v. Local planning schemes could contain provisions to supplement the deemed provisions and address special circumstances.  1.2 Purpose of the Report

Subsequent to WALGA’s State Council’s May resolution and the previous bushfire-planning provisions report identifying possible planning mechanisms to be used to mitigate bushfire hazards; the purpose of this report is to examine the content of possible planning provisions and what they should achieve, in order to ensure that the location and design of new development is delivered appropriately to mitigate bushfire hazards.

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The report is divided into two broad sections, the first of these examines existing planning provisions concerning bushfire mitigation, whilst the second part sets out the results of a Local Government survey examining the issues concerning the adoption of a State-wide minimum land-use planning bushfire mitigation standard.

2. DELIVERING A RESPONSE

 2.1 National Responses

AS3959 stands for the adopted Australian Standard (3959) for the Construction of Buildings in bushfire prone areas.

The Standard declares itself to be “primarily concerned with improving the ability of buildings in designated bushfire-prone areas to better withstand attack from bush fire thus giving a measure of protection to the building occupants (until the fire front passes) as well as to the building itself.” Nevertheless, the Standard also recognises that “other measures of mitigating damage from bushfire fall within the areas of planning, subdivision, siting, landscaping and maintenance”.

The Standards work on a basis of determining the Bushfire Attack Level (BAL) with higher construction standards required for buildings within areas with a higher BAL rating. There are two methods for calculating the BAL rating, the first a simplified procedure based on a six step process (limited to sites where the effective slope under the classified vegetation, is not more than 20° downslope) and second method based on calculations where a more specific result is sought or where the site conditions are outside of the scope of the simplified procedure. The process for determining a sites BAL rating using the ‘detailed method’ is included in the standard.

The Simplified Procedures, six step process for determining the BAL rating includes;

1. Determine the relevant Fire Danger Index (FDI) (Western Australia’s has a FDI value of 80) 2. Determine the classified vegetation type(s) 3. Determine the distance of the site from the classified vegetation type(s) 4. Determine the effective slope(s) under the classified vegetation type(s) 5. Determine the appropriate BAL 6. Determine the appropriate construction requirements Table 1, below, sets out the various BAL ratings based upon the simplified procedure, calculated in accordance with the distance of a site from the classified vegetation and its effective slope. Table 2 provides a description of the predicted bushfire attack & levels of exposure of the each of the six BAL ratings.

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Table 1: Determining the Bushfire Attack Level (BAL) – FDI 80 (Western Australia)

Source: AS 3959

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Table 2: Bushfire attack levels and AS 3959

Bushfire Level of Classified vegetation Description of predicted bushfire Construction Attack risk within 100 m of the attack & levels of exposure section to Level site comply with (BAL) & heat flux exposure within thresholds AS3959

Exclusions: There is insufficient risk to warrant BAL- Very low Low threat vegetation specific construction requirements 4 LOW & non-vegetated areas Ember attack. BAL- The construction elements are Low ≤12.5 kW/m² 3 and 5 12.5 expected to be exposed to a heat flux not greater than 12.5 kW/m². Increasing levels of ember attack and >12.5 kW/m² burning debris ignited by windborne BAL-19 Moderate 3 and 6 ≤19 kW/m² embers together with a likelihood of exposure to radiant heat Increasing levels of ember attack and >19 kW/m² burning debris ignited by windborne BAL-29 High 3 and 7 ≤29 kW/m² embers together with increasing heat flux. Increasing levels of ember attack and burning debris ignited by windborne >29 kW/m² BAL-40 Very High embers together with increasing heat 3 and 8 ≤40 kW/m² flux with the increased likelihood of exposure to flames from the fire front. Direct exposure to flames from fire BAL-FZ Extreme >40 kW/m² front in addition to heat flux and 3 and 9 ember attack

The design and construction standards required by AS3959 for the various BAL ratings becomes more stringent as the level of risk increases and relate to the design and materials used a range of building elements including;

 flooring  walls  external door and window openings  roofs (and roof fittings for any attached roofs such as carports and verandas etc)  ancillary items, (verandas, decks, steps etc)  water and gas supply piping It is important to note that the standard does not include requirements for Building Protection Zones (BPZs), however is based upon BAL rating which is itself calculated on the basis of distance from vegetation. As such, an increase in the distance between a building and bushfire prone vegetation reduces the bushfire attack level rating and therefore the construction standards required. However,

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whilst the building construction requirements relate to the BPZ and the distance of a building from vegetation, the provisions of the Building Act do not include the necessary statutory powers to require landowners to maintain an appropriate BPZ. Instead these powers reside with planning, highlighting the complexity of managing development within bushfire prone areas.

 2.2 The Victorian Response

In response to the Black Saturday fires in Victoria, the Victorian Government announced a Royal Commission to examine "all aspects of the government's bushfire strategy". As a result of the Royal Commission, amendments were made to the Victorian planning framework with a State Planning Policy for Bushfire included in every planning scheme in Victoria and the establishment of the ‘Bushfire Management Overlay’ (BMO). In summary, the bushfire hazard is identified by the BMO whilst the statutory planning and building response to the hazard set out by the Victoria Planning Provisions.

The Victoria Planning Provisions state that in areas identified as being affected by the bushfires, a site- based assessment is required setting out appropriate bushfire protection measures for development that has the potential to put people, property or community infrastructure at risk from bushfire.

The Provisions state that new development is only permitted where:

 “The risk to human life, property and community infrastructure from bushfire can be reduced to an acceptable level.  Bushfire protection measures, including the siting, design and construction of buildings, vegetation management, water supply and access and egress can be readily implemented and managed within the property.  The risk to existing residents, property and community infrastructure from bushfire is not increased.

“Planning must consider as relevant:  Any relevant approved State, regional and municipal fire prevention plan.  AS 3959-2009 Construction of Buildings in Bushfire-prone Areas (Standards Australia, 2009).  Building in bushfire-prone areas - CSIRO & Standards Australia (SAA HB36-1993, May 1993)”

A brief summary of the Victoria Planning Provisions and the BMO is set out in Table 3 below.

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Table 3: Victorian Statutory Planning & Building, Bushfire Mitigation Response

Hazard Hazard Hazard Criteria Statutory Key Responses Level Description Response

• Planning permit requirement for new homes, subdivisions and

• Vegetation area vulnerable uses.

size of ≥4ha with a Planning: Areas of extreme & • New development to be 150m ember BUSHFIRE significant fuel accompanied by bushfire Extreme & protection buffer MANAGEMENT loads where there protection measures (defendable Significant applied. OVERLAY is potential for space, construction standards for Bushfire bushfire behaviour • Locations bushfire, access, siting, water, Hazard such as a crown potentially subject consideration of the wider (BHL2) Building fire, significant to extreme ember landscape). Regulations: levels of radiant attack and other BUSHFIRE heat and extreme extreme bushfire • New residential lots created with PRONE AREA ember attack. behaviour. bushfire protection measures approved and no need for any further bushfire approvals.

Areas with • Vegetation patch • New development to be unmanaged size of ≥2ha with a accompanied by bushfire grasslands & variable ember protection measure: construction smaller patches of protection buffer of standards for bushfire. This is Moderate more significant 60m, 150m or determined using AS3959: 2009 Building to High vegetation where 300m depending Building in a Bushfire Prone Area. Regulations: Bushfire there is potential on vegetation type. BUSHFIRE • Requirement for ember Hazard for moderate to PRONE AREA protection in new development. (BHL1) high bushfire • Unmanaged behaviour such as a grasslands & other • No requirement to repeat a crown fire, grass locations bushfire site assessment if fire and ember potentially subject undertaken under the Bushfire attack. to ember attack. Management Overlay. Low Bushfire Areas where the extent, configuration Hazard &/or management of vegetation means N/A (BHL Low) there is low potential for bushfires

Clause 44.06 of the Provisions, ‘Bushfire Management Overlay’ sets out the requirement for a planning permit for subdivision, new residential development together with the development of a range of other vulnerable uses. Subdivision applications within the BMO are required to include a bushfire management statement, which includes a bushfire site assessment identifying defendable space and construction requirements of Clause 52.47 (Bushfire Protection: Planning Requirements). The clause includes a mandatory subdivision condition requiring an agreement to be registered on the title to the land, which for the purposes of an exemption from a planning permit under clause 44.06-1, identifies the building envelope and defendable space envelope necessary to achieve the Bushfire Attack Level

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approved, any vegetation management requirements, together with any access and water supply requirements issued as part of an approval. Further the clause requires that a permit to construct a building or construct or carry out works must include the following condition;

“The bushfire mitigation measures forming part of this permit or shown on the endorsed plans, including those relating to construction standards, defendable space, water supply and access, must be maintained to the satisfaction of the responsible authority and the relevant fire authority on a continuing basis. This condition continues to have force and effect after the development authorised by this permit has been completed.”

Clause 52.47 Bushfire Protection: Planning Requirements, sets out a series of specific objectives, standards and decision guidelines for all planning schemes and these inform decisions and requirements under the BMO. The matters to be considered include:

 location, layout and siting,  defendable space and construction requirements (dependent upon the BAL rating),  water supply and access, and;  implementation of bushfire protection measures. The defendable space requirements of the Victorian Planning Provisions work on the principle of providing an inner and outer zone of defendable space. The requirements vary depending on the type of development proposed in recognition of the vulnerability to bushfire for different uses.

The shape of the defendable space may vary according to the threat from a particular aspect and a more detailed Bushfire Site Assessment. For example, the classifiable vegetation neighbouring a site may vary between boundaries and therefore the shape of the defendable space surrounding the development may be responsive to the different levels of threat. The Victorian defendable space standards are set out in appendix 2.

As well as managing ‘new’ development the Planning Provisions also deal with preexisting development. The requirements of the Victoria Planning Provisions do not preclude development in extreme and significant bushfire hazard areas; instead seek to help to improve the existing situation through the application of higher building design and construction standards.



 2.3 New South Wales Response

In New South Wales, the Planning for Bush Fire Protection (PBP) applies to all ‘development applications’ on land that is classified as “bush fire prone land” (BPL), as identified by Local Government. All development on bush fire prone land must satisfy the aims and objectives of the PBP which is to protect of human life, minimise impacts to property from the threat of bush fire whilst having regard to development potential.

The PBP sets a series of development guidance relating to residential (including rural residential) development, ‘special fire protection purpose’, or other development such as residential infill, alterations and additions.

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The PBP sets out detailed development control guidance relating to number of issues including,

 Asset protection zones and defendable space (a buffer zone between a bush fire hazard and buildings)  Access standards  Water supply and utility services  Emergency management arrangements  Landscaping  Building construction and design  Residential and rural subdivisions Where the prescribed acceptable solution for each of the development design criteria cannot be met, a performance criteria approach is used. Any variation from the acceptable solutions will require detailed justification to demonstrate how the performance criteria can be met by the adoption of an alternative development design. In short, the performance criteria is used so as not to unreasonably restrict development or to prevent development from occurring which achieves other planning goals such as infill development.

The determination the asset protection zone and the required distance between a building and the predominant vegetation is calculated in the same way as the methodologies used by the AS3959-2009 and the Victoria BMO by determining the slope, type of neighbouring vegetation and the Fire Danger Index.

 2.4 WA State Government Responses

Planning for Bush Fire Protection Guidelines In 2010 the Department of Planning together with the Department of Fire and Emergency Services, (DFES) released the Planning for Bush Fire Protection Guidelines (Edition 2), prepared in accordance with State Planning Policy 3.4 Natural Hazards and Disasters.

The guidelines set out a range of matters that need to be addressed at various stages of the planning process, in order to protect life and property from bush fires and avoid inappropriately located or designed land uses, subdivision and development.

The guidelines address a number of important fire risk management and planning issues, including:

 the statutory planning process as it relates to fire protection;  bush fire hazard assessment;  the definition of bush fire prone areas;  fire protection requirements for subdivision and development; and  strategies available to limit the vulnerability to fire. Nevertheless, the guidelines remain just that, they carry no statutory weight in the planning consideration process, and accordingly states that;

“Local governments are encouraged to adopt the guidelines as policy and may add to their list of acceptable solutions by including solutions that are appropriate to local needs. These solutions can be

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used to clarify and reinforce the intent of the performance criteria and acceptable solutions in the guidelines.”

Guidance for the identification and designation of bush fire prone areas as well as provisions for controlling development within bush fire prone areas are included in the Guidelines. The Guidelines development control provisions adopt a ‘performance criteria and acceptable solutions’ approach to be used in the development assessment proposals. The development assessment criteria examine a total five different elements including location, vehicular access, water supply, development sitting and design. The intent of each of these elements is set out in Table 4.

Table 4: Planning for Bush Fire Protection Guidelines: Summary of provisions

Element Intent Summary of Criteria / Acceptable solutions Location To ensure that  The subdivision/development is located on land that development/intensification is not subject to either an extreme bush fire hazard of land use is located in land classification or requires construction standards areas where the bush fire to BAL-40 or BAL-FZ. hazard does not present an unreasonable level of risk to life and property. Vehicular Access To ensure that the vehicular  The internal layout, design and construction of access serving a subdivision/ public and private vehicular access in the development is safe in the subdivision/development allow emergency and event of a bush fire other vehicles to move through it easily and safely at occurring. all times.  All public and fire access routes should allow for two-way traffic, so that vehicles can safely enter as well as evacuate in a fire emergency.  Cul-de-sacs are generally not encouraged Water To ensure that water is  The development is provided with a permanent and available to the secure water supply that is sufficient for fire fighting development to enable life purposes. and property to be defended from bush fire.

Siting of To ensure that the siting of  Minimum distance of 100 metres from any development development minimises the vegetation classified or construction standard level of bush fire impact. satisfying AS 3959 with appropriate Building Protection Zones and Hazard Separation Zones. Design of To ensure that the design of  The design and layout of subdivision and development the development minimises development can reduce the vulnerability of the level of bush fire impact. dwellings and residents from the impact of a bush fire.  Bush fire protection features form an integral part of subdivision and development design. It is generally not sufficient, nor indeed practical, to try to add bush fire protection features once a subdivision and related development has been designed or established.

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 2.5 WA Local Government Responses

In Western Australia, just two Local Governments, the Shire of Augusta-Margaret River and the City of Busselton, have adopted specific Local Planning Scheme provisions which directly deal with the mitigation of bush fire hazards. Nevertheless many Local Governments have planning scheme or policy provisions which seek to ensure bush fire considerations are taken into account as part of the planning process and/or ensure bush fire mitigation is delivered through the structure planning process. In addition, the City of Swan is currently seeking the formal amendment of its planning scheme to ensure its local planning policy framework is able to response to the City’s bushfire hazards more effectively. A summary of some of the existing Local Government responses are provided below.

Shire of Augusta Margaret River In 2012, the Shire of Augusta-Margaret River amended its planning scheme and designated a series of Bushfire Prone Areas across the Shire. The designation triggers the need for development to satisfy the higher construction standards (Australian Standard 3959-2009) as set out by the Building Code of Australia for development within Bushfire Prone Areas. In combination with this, the scheme sets out a requirement for any planning approval or structure plan to include a Fire Management Plan for endorsement by DFES and the Shire. In accordance with a Fire Management Plan within the ‘Rural Residential Zone’, the proponent of a subdivision is required to provide strategic and or individual lot fire breaks and a water supply point to the satisfaction and specification of DFES and the local government, which thereafter, shall be maintained by the landowner or local government.

The provisions of the scheme allow a landowner to dispute a Bushfire Prone designation on their land and request a reassessment of the designation providing that appropriate evidence is offered by a suitably deemed qualified bush fire expert.

City of Busselton Through its Local Planning Scheme and the publication of bushfire mapping, the City of Busselton has declared a series of bushfire prone areas. The City first published Bushfire Prone Mapping in 2006 which was updated in 2011. The City’s Planning Scheme confirms that the designation of Bushfire Prone Area (identified on the Bush Fire Hazard Assessment maps with a bush fire hazard level of medium, high or extreme) triggers the requirement for development to be constructed in accordance with the higher construction standards for bush fire prone areas as set out by the Building Code of Australia and Australian Standard 3959 - 1999.

Further to the existing scheme provision, the City is seeking the adoption of a draft planning policy, which broadly speaking will extend the existing requirements by utilising the existing WAPC Guidelines: Planning for Bush Fire Protection.

The provisions of the draft planning policy will dictate that the location of a planning scheme amendment, subdivision, building envelope relocation, and any other planning consent or building application, in relation to a bush fire prone area may require a fire management plan. In summary, a fire management plan will be required to be prepared by person deemed appropriate by the City, include a

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bush fire hazard assessment consistent with the WAPC’s Planning for Bushfire Protection Guidelines, a BAL rating assessment and the extent of native vegetation clearing.

The draft policy will require the development of dwellings and water tanks within bush fire prone areas (other than urban bush fire prone) to be constructed to a minimum of standard of BAL 19 with a BPZ of 25m. Where it is not possible to meet the BPZ requirement, the proposed policy will seek a higher construction standard of BAL 29 or BAL 40 together with an appropriate BPZ. Nevertheless, where it is possible to provide a BPZ of 25m, a higher construction standard will not reduce the requirement to provide a BPZ of 25m.

The draft policy states that “Where a building licence application for development that would not otherwise require planning consent is submitted to the Shire and the application does not comply with these provisions, an application for planning consent will be required and that application will be assessed against these provisions.”

City of Swan The City of Swan is currently undertaking measures to amend its Local Planning Scheme to introduce a new Special Control Area, ‘Bushfire Prone Area’. The amendment seeks to activate the higher construction standards (AS 3959) required by the Building Code of Australia for bush fire prone areas and also ensure that the WAPC’s Planning for Bushfire Protection Guidelines are taken into consideration as part of the development assessment process.

The scheme amendment will ensure that all residential development proposals (classes 1, 2, 3 or 10A building under the Building Code of Australia, notwithstanding that the development may be designated a "P" use under the Scheme) within the proposed BPA, are lodged with the City for formal (development application) assessment and such, applications will need to include; a) "A bushfire attack level assessment carried out in accordance with AS3959; and; b) A statement or report that demonstrates the proposed development effectively addresses the level of bush fire hazard applying to the land by conforming to any applicable performance criteria or acceptable solutions stipulated by the Planning for Bushfire Protection Guidelines."15

Within areas of an extreme bush fire hazard level (BAL-40 and BAL-FZ) the proposed amendment states that "There is a presumption against approving any proposed development, and against recommending approval of any proposed subdivision, within a designated BPA unless the proposal is demonstrated by the applicant to be compliant with those aspects of each State Planning Policy, Local Planning Policy and Australian Standard which deal with development (including building standards) and subdivision within Bushfire Prone Areas.”

15 City of Swan Ordinary Meeting of Council 12 June 2013

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3. LOCAL GOVERNMENT FEEDBACK

 3.1 Local Government Survey

In July, the Association commissioned a survey seeking feedback from its members with the purpose of gathering a more detailed understanding of the issues concerning the possible adoption of land use planning bushfire mitigation provisions. Specifically, the survey sought to examine possible issues associated with the adoption of State wide minimum planning and building approval standards for bushfire mitigation.

Survey Response Rate The survey received a high response rate, with a total of 89 individuals, representing 53 (known) Local Governments from seven different regions across the State responding to the survey. It is also important to note that a diverse range of respondents completed the survey including CEO’s, Directors, Managers, Planning Officers, Building Surveyors and Emergency Management staff. Therefore it is clear that the survey offers a reliable evidence base of Local Government opinion concerning the adoption of land use planning, bushfire mitigation provisions.

Survey Results Q. What

considerations do you think the minimum State-wide planning provision should trigger?

The overwhelming majority of survey respondents, 89%, consider that if adopted a State-wide minimum standard bushfire planning provision should trigger both, the Planning for Bush Fire Protection Guidelines and also the building construction standards, AS 3959-2009. Just 11% of respondents felt that either the Planning Guidelines, or AS3959 building should be applied whilst not a single respondent believed that doing nothing and adopting neither of these is an option.

In support of these figures, a large number of respondents commentated that the planning and building standards items were mutually dependent and that “only applying AS3959 in bushfire prone areas ignores other important provisions within the Planning for Bush Fire Protection Guidelines such as access and water. There also needs to be a more strategic assessment of the suitability of sites for development.”

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Q. Would the adoption of Australian Standard 3959-2009, Construction of Buildings in Bushfire-Prone Areas, as the 'minimum development standard' within bushfire prone areas be problematic for your Local Government?

Over half of all respondents felt that the application of AS3959 would be problematic for their Local Government, with 8% stating that it would pose considerable difficulties. Just over a third of respondents didn’t anticipate any difficulties, with several stating that the Standard had already been introduced within their Local Government.

Of the respondents who raised concerns about the adoption of the Standard, approximately 20% highlighted developer acceptance of the increased development costs required to meet the higher construction standards as an issue. Approximately 10% of respondents who felt that AS3959 would be problematic expressed concerns regarding the administration of the higher construction standards and that it would require additional staffing resources and also additional training to be undertaken by both staff and also external agents. Respondents were also concerned about the availability and accuracy of the bushfire prone area mapping needed to trigger the application of the construction standard. In summary, Local Government concerns regarding the adoption of AS3959-2009 include:

 Additional Local Government resources required in the assessment of planning and building applications & additional timeframes for approvals  The application of construction standards to building alterations and retrospectively  Additional construction costs  The current absence of professional accreditation  Balancing environmental conservation and bushfire protection  The need for an industry standard on vegetation types to determine BAL's  The accuracy of bushfire prone mapping  Linkages between planning requirements and other statutory legislation  That the ongoing management rests generally with Local Government  Ongoing management of the assessed BAL  How Local Government keep adequate records of fire management plans to effectively implement them at building permit stage

Q. Are there any aspects or elements of the Building Code of Australia / Australian Standard 3959-2009 that you think are either missing or should be strengthened?

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Whilst half of the survey’s respondents were unsure whether AS3959 should be strengthened or if there were elements missing, one in five respondents believe that the Standard could be improved. Suggestions for improvement include;

 Linking the Building Regulation with the Building Act to support its implementation so that the application of the Standard is not reliant on planning legislation.  Greater clarity to improve the interpretation and application of the Standards.  Ongoing building maintenance – ensuring that replacement of building features are do so with items that conform to the standard. Provision for continual assessment and verification that the building/vegetation satisfies the standard is needed  Lack of guidance concerning air conditioning units and private bushfire shelters (bushfire bunkers)  Clarification of application of the standard to minor building alterations  Ongoing vegetation management - The BAL assessment process construction standard requirement is based on the environmental constraints at a given time. This can change either through additional clearing or revegetation on adjacent land not controlled by the property owner.

Q. Would the adoption of the DFES / WAPC's Planning for Bush Fire Protection guidelines, as the 'minimum development standard' within bushfire prone areas be problematic for your Local Government?

Approximately half of respondents do not anticipate that the adoption of the WAPC’s Planning for Bush Fire Guidelines would be problematic for their Local Government. Nevertheless, 40% of respondents believe that adopting the guidelines would pose some difficulties and a further 5% consider believe that it would present considerable difficulties. Respondents highlighted similar difficulties and challenges concerning the adoption of the Planning for Bush Fire Protection guidelines as to those concerning the adoption of the building construction standard AS3959, including:

 The additional workload and staffing resource requirements  The application of the guidelines retrospectively the inconsistence application between established areas and new subdivisions and new and older homes within the same areas  Community and stakeholder dissatisfaction as a result of the increased development costs  BAL assessments becoming quickly out of date  Conflict with environmental protection & bushfire hazard mitigation compliance  Inconsistency in the Guidelines and discrepancies between the Guidelines and AS3959-2009  The removal of planning approval conditions by the State and SAT  Professional accreditation requirements  Protracted scheme amendment process

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Q. Are there any aspects or elements of the 'Planning for Bush Fire Protection guidelines' that you think are either missing or should be strengthened?

Almost 40% of respondents considered there to be planning provisions either missing, or in need of strengthening within the 'Planning for Bush Fire Protection guidelines'. Respondents commented that:

 A stronger emphasis on strategic planning is needed  The Guidelines need to be accompanied with accurately designated bushfire prone area mapping  Clarity on the relationship and connections between planning provisions and other statutory instruments such as the building construction standard AS3959-2009  Greater clarity in the Guidelines, including the clearer standards for differing scale and sizes of development  Accompanying training / accreditation is needed to ensure the effective implementation of the policy guidance – clear advice as to whom is permitted to undertake appropriate development assessments  Properly enforceable standards to maintain approval conditions and robust reasons for refusal for both subdivisions and developments.  Improved technical information regarding aspects including; o Appropriate firebreak width and overhead clearances o Fire hydrant installation requirements o Vehicular access requirements (current standards for two access points are the same for a subdivision of 50 lots as that of 2000 lots) o The positioning of development within lot boundaries to prevent hazard reduction requirements from occurring outside of developer/land owner responsibilities o Greater clarity of different vegetation types o Clarity on separation requirements whether Building Protection Zones are from ‘buildings’ or ‘building envelopes’ o Clarity on the requirements for Fire Management Plans and their contents  Greater Local Government and practitioner input into the policy (Guideline) review process  Improved clarity in the presentation of development standards with the inclusion of improved diagrams and explanatory guidelines  The consideration of the application of environmentally appropriate bush fire mitigation measures as a means of improving viability of proposals and factors such as character and amenity  Guidance as to how ongoing management can be sustainably achieved

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Other Comments Respondents were given the opportunity to provide details of any other concerns that they had or any comments. In providing feedback, it was clear that there are a number of common concerns which include;

 The need for consistency across the State in the application of policy in all areas including building and development standards, Fire Prevention Notices, enforcement, penalties & training. Any ambiguity between differing requirements should be removed  Ensuring ongoing compliance - Suitable mechanisms need to be in place to maintain Fire Management Plans and BAL assessment ratings without the need for complicated DEC approvals  Access to qualified bushfire expertise and training  The urgent need for accurate bushfire prone area mapping  Need for appropriate Local Government consultation in the application of any standards and bushfire prone area mapping  Balancing the conflict between biodiversity conservation and fire safety and ensuring that environmental issues are properly considered  Need for integrated legislation and policy application, including the strengthening of Fire Management Plans through legislation and policy  Concerned that the imposition of additional compliance regimes may be a detriment to further development in areas where it is already difficult to attractive investment.  Lack of WAPC support o Reluctance of the WAPC to adopt bushfire mitigation provisions or support Local Government attempting to do so. o In the approval of subdivision applications and the removal and discharge of conditions  Need for effective strategic planning, the application of bushfire protection measures later on in the process is expensive  The retrospective application of any standards  The need to retain local knowledge  Need to take into account the regional climatic conditions, not all areas of the State are at risk - Concerns that an inappropriate, simple ‘catch all’ approach will penalise areas not at risk from bushfire  The ability to be able to declare some areas 'indefensible'  It is vital that any insurance implications are clearly set out  Has the effectiveness of AS3959 been truly tested

 3.2 Summary, Local Government Survey Findings

The results of the Local Government Bushfire Planning Provisions Survey were clear, in bushfire prone areas, both land use planning, development control standards and building construction standards should be adopted and applied. It is particularly important that an appropriate strategic planning response is delivered as the costs of implementing a higher building construction standard is likely to

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encounter developer and community resistance. Getting the strategic planning right also has the benefit of helping to alleviate requirements for compliance monitoring.

The adoption of any State wide bushfire mitigation development standards should be undertaken in conjunction with proper training, education and information programs for all stakeholders involved including, planners, developers, builders and members of those communities affected by the declaration of bushfire prone areas. This training should include the establishment of a land use planning/building construction bushfire professional accreditation program.

Ensuring the ongoing compliance of any bushfire mitigation standard is a critical issue. To aid this, it is important that there is consistency across all relevant statutory legislation and that the provisions contained within any development standards should be clear and unambiguous. The development standards also needs to set out clear standards concerning the modification and redevelopment of existing buildings within bushfire prone areas.

4. CONCLUSION & RECCOMENDATIONS

In conclusion, it is clear that within Western Australia, the current approach to applying planning provisions concerning bush fire hazard mitigation is inadequate. That is not to say to that the existing guidance for controlling bush fire hazards as set out by the ‘Planning for Bush Fire Guidelines’ is inappropriate, but rather that given its status as ‘Guidelines’, its application is weak and inconsistent. As such, there are opportunities to improve the application of subdivision, development and building control standards. Furthermore, whilst Keelty recommended that “the State Government give legislative effect to the Planning for Bush Fire Protection Guidelines”, it is apparent that as part of this process, the existing detail and requirements set out within the Guidelines should also be strengthened in order to better protect life and property.

In accordance with State Council’s resolution (200.2/2013) Bushfire Prone Areas should be declared by the State Government and consistent, State-wide, minimum bushfire mitigation standards be adopted for application within these areas. In pursuit of the adoption of consistent, State-wide, minimum bushfire mitigation standards, it is recommended that

1. In accordance with Keelty’s recommendations, within bushfire prone areas, the ‘Planning for Bushfire Guidelines’ should be given legislative effect to set out the requirement for a minimum standard for development. As part of this process, the advice contained in the existing Guidelines shall be strengthened in consultation with the Local Government sector, so that the minimum development standard includes: a. Strategic planning guidance with the purpose of avoiding increased fire risk to life and property through inappropriately located or designed land use, subdivision and development; b. Further guidance concerning the appropriate design of subdivisions and buildings within bushfire prone areas;

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c. Include model/exemplar standard subdivision and development application conditions to address issues, including but not limited to, the ongoing maintenance of buildings and associated structures, vegetation management, and vendor disclosure; and d. Policy guidance for dealing with extensions to existing buildings and redevelopment. 2. The statutory instrument used by the State Government in the declaration of bushfire prone areas, shall ensure that the building construction standards set out by AS 3959-2009 are applied to all new development within such areas. 3. A training and education program is established informing all stakeholders of the new requirements for development in bushfire prone areas. 4. A professional accreditation program is established ensuring that bushfire attack level ratings and bushfire management plans are conducted and assessed by suitably qualified persons.

APPENDIX 1: Local Planning Scheme/Policy Provisions

Shire of Augusta Margaret River, Local Planning Scheme No.1

5.19 Bush fire hazard and Fire Management Plans

All areas identified as bush fire prone on the Bushfire Hazard Assessment Maps are designated bush fire prone areas for the purposes of the Building Code of Australia.

Bush Fire Hazard Assessment maps are contained within the Local Planning Strategy, held at the local government offices and form part of the Scheme for the purposes of this clause.

If an owner disputes the land’s identification within a Designated Bushfire Prone Area that owner may provide suitable written evidence from a qualified bush fire expert, to the local government, and request reconsideration of that identification.

On receiving a request made under clause 5.19.3, the local government may by notice in writing served on the person who made that request –

a) determine that the land is not within a Designated Bushfire Prone Area; or b) determine that the land’s identification within a Designated Bushfire Prone Area is correct. Where:-

(a) in any approval granted to an application for planning approval under the provisions of the Scheme; or

(b) in the adoption by either the local government or the Western Australian Planning Commission of a Structure Plan or other similar Plan; or

(c) under a condition of an approval granted by the Western Australian Planning Commission to an application for approval to subdivide land; a Fire Management Plan is required to be prepared and endorsed by the Fire and Emergency Services Authority of Western Australia and the local government; the affected land owners will be responsible

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for the ongoing implementation of the “land owners responsibilities” as specified in that Fire Management Plan.

City of Busselton Town Planning Scheme No 20

108. Designated Bushfire Prone Areas

A Designated Bushfire Prone Area is any area identified on the Bush Fire Hazard Assessment maps with a bush fire hazard level of medium, high or extreme. Dwelling construction within a Bushfire Prone Area will be subject to the relevant bush fire prone area building requirements pursuant to the Building Code of Australia and Australian Standard 3959 - 1999.

The Bush Fire Hazard Assessment maps held at the local government offices (and as may be amended from time to time) form part of the Scheme for the purposes of this clause.

If an owner disputes his land's identification within a Designated Bushfire Prone Area that owner may request in writing the local government to reconsider that identification.

On receiving a request made under sub-clause (3), the local government may by notice in writing served on the person who made that request -

(a) determine that the land is not within a Designated Bushfire Prone area; or

(b) determine that the land's identification within a Designated Bushfire Prone Area is correct.

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APPENDIX 2: Victorian defendable space standards

Defendable space for dwellings and dependent person’s, industry, office and retail premises

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Defendable space management requirements

Inner zone  Within 10 metres of a building, flammable objects such as plants, mulches and fences must not be located close (1.5 to 2 times the mature height of the fuel) to vulnerable parts of the building such as windows, decks and eaves.  Trees must not overhang the roofline of the building, touch walls or other elements of a building.  Grass must be no more than 5 centimetres in height. All leaves and vegetation debris are to be removed at regular intervals.  Shrubs must not be planted under trees and must be separated by at least 1.5 times their mature height.  Plants greater than 10 centimetres in height at maturity must not be placed directly in front of a window or other glass feature.  Tree canopy separation of 2 metres and the overall canopy cover of no more than 15 per cent at maturity.  Tree branches below 2 metres from ground level must be removed. Outer zone  Grass must be no more than 10 centimetres in height and leaf and other debris must be mowed, slashed or mulched.  Shrubs and/or trees must not form a continuous canopy with unmanaged fuels.  Tree branches below 2 metres from ground level must be removed.  Trees may touch each other with an overall canopy cover of no more than 30 per cent at maturity.  Shrubs must be in clumps of no greater than 10 square metres, which are separated from each other by at least 10 metres. Inner and  Non-flammable features such as tennis courts, swimming pools, dams, patios, driveways outer or paths should be incorporated into the proposal, especially on the northern and zones western sides of the proposed building.  Features with high flammability

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5.10 Local Government Town Planning Guideline for Alcohol Outlets (06- 045-01-0001 VJ) Vanessa Jackson, Policy Manager Planning Reform and Improvement

Moved: Cr D Thompson Seconded: Cr R Winzer

That the Association endorse the Local Government Town Planning Guidelines for Alcohol Outlets (Executive Summary).

RESOLUTION 252.4/2013 CARRIED UNANIMOUSLY

In Brief  Guidelines have been prepared to provide town planning mechanisms that will assist local government planners in managing alcohol related development within their municipality.  The Executive Summary is attached; the full resource is currently being edited and awaiting endorsement from the grant funder, the Drug and Alcohol office.  The final resource will be published and released in October 2013.

Attachment Part 1 - Executive Summary - Local Government Town Planning Guideline for Alcohol Outlets

Relevance to Strategic / Business Plan 1. Providing effective leadership for Local Government 2. Enhancing the capacity of Local Government to deliver services

Policy Implications The Local Government Town Planning Guideline for Alcohol Outlets has been prepared as part of an ongoing collaboration with the Drug and Alcohol Office and compliment the Local Government Alcohol Management Package published in 2009.

Budgetary Implications The preparation of the Guidelines has been possible through a Grant Agreement from the Drug and Alcohol Office in 2012/2013, and with the appointment of planning consultants ‘Planning Context’ to research, workshop and prepared the resource materials. Additional funding has also been obtained in 2013/2014 to assist with the delivery of the Communications Strategy for the resource.

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Background The Drug and Alcohol Office established the Local Government Alcohol Management Package in 2005, in collaboration with a core advisory group including representatives from WALGA and metropolitan Local Governments, with ongoing advice sought from non-metropolitan Local Governments. The Local Government Alcohol Management Package intends to assist WA Local Governments by promoting a prevention and risk management approach to existing Local Government activities, responsibilities and approval processes regarding alcohol. Importantly it is acknowledged that all spheres of government have a role in alcohol management.

Comment

A whole-of-organisation alcohol policy and management plan is one of the best ways for a Local Government to achieve a cost effective and positive approach to creating a safer, healthier community and town planning is an important sub-set of that approach.

The Local Government Town Planning Guideline for Alcohol Outlets responds to increasing calls from Local Government for alcohol management assistance and provides advice to Local Government town planners in the consideration and control of land use activities that have a component of alcohol consumption or sale.

The Executive Summary of the Guidelines is attached, outlining the role that town planning can play when considering and managing alcohol outlets. The objective of the Local Government Town Planning Guideline for Alcohol Outlets is:

To provide Local Government with advice on the potential use of town planning instruments and processes to help control and manage alcohol-related development through appropriate strategic planning processes and more specific development mechanisms.

The resource has been prepared in three parts: -  ‘Part 1 – Executive Summary’ being an overview of Part 2 and Part 3.

 ‘Part 2 – Guideline’ providing a model for consideration for how local governments can make a difference through town planning.; and

 ‘Part 3 – Background and Processes’ providing an introduction and background to the project and the planning and liquor licence processes

Parts 2 and 3 are currently being finalised with the Drug and Alcohol office and it is expected that the resource will be published on-line through the forthcoming Planning Improvement Program Portal (website) and as a hard copy version in October 2013.

It is recommended that State Council endorse the Executive Summary of the Local Government Town Planning Guideline for Alcohol Outlets, as it outlines the main principles and content of the full resource.

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OCM068.3/10/13

July Item 5.10 - Attachment

2013

Part 1 Executive Summary

Local Government Town Planning Guideline for Alcohol Outlets

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Executive Summary

 This Guideline responds to increasing calls for assistance from Local Governments wanting to address alcohol-related problems and emerging alcohol issues in their communities. Background  This Guideline has been developed in three sections: - Part 1 – Executive Summary being an overview of Part 2 and Part 3. - Part 2 – Guideline providing a model for consideration for how local governments can make a difference through town planning.; and - Part 3 – Background and Processes providing an introduction and background to the project and the planning and liquor licence processes  This Guideline is the result of an ongoing collaborative Local Government Alcohol Project (LGAP) since 2005, between the Western Australian Local Government Association (WALGA) and the Drug and Alcohol Office (DAO) with the assistance of the planning consultancy, Planning Context.  The LGAP is intended to assist Western Australian Local Governments by promoting prevention and risk management approach to existing Local Government activities, responsibilities and approval processes regarding alcohol. Importantly it is acknowledged that all spheres of government have a role in alcohol management.

Introduction  Vibrant and diverse urban environments are desirable and often the objective of Local Governments.  In a planning sense, alcohol outlets are often perceived as bringing vibrancy, however, Local Governments are increasingly seeking to reduce alcohol-related harm and problems in their community.  Considerations of vibrancy, therefore, need to be balanced with providing safe and community orientated places where there is a structured approach to alcohol management and mitigating alcohol-related harms.

Objective and Purpose  The objective of this Local Government Alcohol Town Planning Guideline is:

 This Guideline is complementary to the Local Government Alcohol Management Package (2009) toolkit which promotes a whole of organisation approach to Local Government alcohol issues.

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A Resource Informed by Planners  Qualitative and quantitative research involving a number of Local Government planners throughout Western Australia in 2011 and 2012 has informed the development of this resource and provides a more formal evidence base from which to complement existing work in this area, and to develop future strategies for working with Local Governments and planners in particular. Alcohol-related Community Impacts and Research  There is increasing community concern about alcohol-related harm at the local level.  Where, when and how alcohol is made available in a community can impact on issues that Local Governments are increasingly responding to, including community safety, violence, child wellbeing, youth engagement, property damage to name but a few.  Overall, international and Australian research is consistent that there is a link between alcohol availability and alcohol-related harms.  Available evidence suggests: - The association between outlet density and a range of alcohol-related harms is quite consistent. - A spatial link exists between alcohol outlets and alcohol-related harm. - A strong correlation between outlet density, volume of alcohol sales and assault. - Increased numbers of alcohol outlets makes alcohol more accessible by bringing someone closer to a purchase opportunity.  Australian and international researchers are now exploring the established relationship between outlet density and harm in more depth with regard to the characteristics of different licence types and the local context as it relates to individual communities.  Several recent studies have also concluded that where applied strategically, trading conditions have the impact to reduce alcohol-related harm and is identified as one of the ‘best buys’ among a selection of management strategies for the prevention of alcohol- related harm. Alcohol-related Issues and Local Government Impacts  The problems associated with harmful alcohol use impact both directly and indirectly on Local Government operations in Western Australia. It is this level of government that is closest to its local community and sees many of the alcohol-related problems that are visible in the community. Some of the negative impacts can include: - Nuisance including noise and anti-social behaviour from intoxicated persons. - Infrastructure capacity problems including limited availability of transport and car parking for patrons and local residents. - Violence and perceived threats to safety. - Crime including vandalism, trespass and property damage. - Costs of mitigation, management, reactive and responsive services.

Alcohol Management: Not just a Local Government Responsibility  Reducing alcohol-related harm is a whole of community responsibility including all levels of Government, law enforcement agencies, the health and welfare sector, local communities, families and individuals.

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Scope of Local Government: Using Tools to Reduce Problems  There is a growing community demand for consideration of the impacts of planning decisions and bigger picture vision for future development relating to licensed premises.  The focus of this guideline is not the delegation of ‘responsibility’ but rather identifying opportunity for those Local Governments seeking alcohol management planning options relevant to their community.  This guideline acknowledges the constraints of the planning system regarding alcohol management and seeks to support Local Governments within these constraints to be aware of available options to respond proactively to alcohol-related matters, should they wish to.  Through its connectedness with the local population, Local Governments help to create and action the vision for a community in terms of development.  Where a liquor licence is located, its operational harmony with its surroundings and how many there are, all potentially impact on harm and ill-health outcomes for a community.  Town planning can manage and mitigate potential alcohol related harm to a certain extent. Within the existing legislative framework, town planning has the ability to regulate and influence certain aspects, while other aspects of liquor control are beyond the scope of town planning and the role and jurisdiction of Local Government.

Planners: Part of a Whole-of-Organisation Approach  A whole-of-organisation alcohol policy and management plan is one of the best ways for a Local Government to achieve a cost effective and positive approach to creating a safer, healthier community and town planning is an important sub-set of that approach. The Role of Town Planning  Planning and urban design is important in creating safe, healthy communities.  Drinking environments and the availability of alcohol are significant in shaping the way people drink and their associated behaviour.  Use of planning policy and legislation to help prevent problems and encourage a more responsible drinking culture can be a cost effective strategy for Local Governments.  The planning processes of Local Governments can be fundamental to achieving a whole-of- organisation vision for a prosperous, safe and healthy community. Key Alcohol Management Issues Relevant to Town Planning  The main alcohol management issues identified for consideration in a planning context in this document are cumulative impact; trading hours and conditions; harm and antisocial behaviour; and physical design.  Each Local Government has a different planning scheme and other policies that are specific to their community. While Local Governments can influence whether or not a liquor licence type is permitted at a particular location, it is not always able to do so based on concerns regarding alcohol-related problems unless it has the appropriate scheme and policy provisions in place.

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The Planning and Liquor Licence Approvals Process Planning  Local government planning involves a top down approach of applying State and regional planning strategy and policy to local situations. Local government statutory planning is ultimately a regulatory function of its local strategies and is supported by local policies. Both regulatory and non-regulatory facets of the local planning system can be used to play an important part in guiding, managing and controlling land use decisions involving alcohol- related development.  There is no specific policy or guidance provided by the Western Australian Planning Commission or Department of Planning in relation to alcohol-related development in Western Australia, however, there are a number of State planning documents which have some relationship with this subject and should be considered (for example some reference in development control policies, planning bulletins and guidelines for designing out crime and anti-social behaviour).  Local planning schemes require development of land (including change in use) to first gain the approval of the Local Government (any exemptions to this are written into the scheme). There may be instances where a separate approval is also required under a region scheme. The major steps in the application and approval process start with the lodgement of an application and end with the possible review by the State Administrative Tribunal.  Applications are assessed by planning staff considering the local planning scheme and policies, together with comments received during the consultation and referral process.  Decisions are made on planning applications by Council, or an officer of Council under delegated authority, or by a Development Assessment Panel.  Applicants may seek review of a planning decision (there is no third party right of appeal) by the State Administrative Tribunal (SAT) where: - Council’s discretion was used to make a decision; - Refusal and approval conditions are not satisfactory to the applicant; or - No decision has been made within the statutory period (60 days without an advertising requirement, 90 days with an advertising requirement).  Liquor licence applicants must liaise with Local Government for relevant planning approvals prior to making an application to the Department of Racing, Gaming and Liquor for a liquor licence.

Liquor Licensing  The Liquor Control Act (1988) regulates the sale, supply and consumption of liquor in Western Australia, the use of premises on which liquor is sold and the services and facilities provided in conjunction with the sale of liquor. It also focuses on minimising harm or ill- health caused to people, or any group of people, due to the use of liquor.  There are different categories of liquor licence available in Western Australia, and because of their specific characteristics and trading conditions, they can have varying impacts on factors such as amenity, health, violence and other problems.  There are a number of stakeholders involved in the liquor licensing process and some roles and responsibilities extend beyond the issue of a licence. Major stakeholders include the Department of Racing, Gaming and Liquor (DRGL); Local Governments; Western Australia Police; Executive Director of Public Health; Liquor Commission; general public; licensees and staff.

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 Applications usually include a Public Impact Assessment. Decisions may be subject to appeal by the applicant and others to either the Liquor Commission or the Supreme Court.

Liquor Licensing and the Planning Process  A liquor licence comes about through two different processes – phase 1 is the Local Government’s planning, building and health process and phase 2 is the liquor licensing process. Each is governed by different legislation.  Liquor licence applications cannot be accepted without the relevant development approval and cannot be granted unconditionally without Section 39 and 40 certificates issued by Local Government (Phase 1).  Prior to assessment of an application for a Section 40 certificate, it is beneficial for Local Governments to have already developed a sound planning and decision framework to confidently make an assessment and decision that is unlikely to be challenged.  Local governments have further opportunity to influence a liquor licensing decision through objection, intervention and appeal in Phase 2.

Assisting Alcohol Management through Local Government Town Planning - Models for Consideration A Process Model

Areas in Focus in Developing a Local Government Town Planning Approach

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Strategic Land Use Planning  The importance of the strategic planning process to inform the development and interpretation of regulatory planning policies cannot be understated. In the absence of adequate levels of strategic planning, regulatory policies are developed without an understanding of the ‘bigger picture’ and the desired strategic direction of the organisation. Regulatory policy development then tends to be ad hoc and reactionary, rather than proactive and targeted at relevant issues.

Plan for the Future  Developing a Plan for the Future (under S5.56 (1) of the Local Government Act 1995) is an opportunity to make specific statements relating to a Local Government’s approach to minimising alcohol-related harm, which can in turn inform the local planning strategy.

Alcohol Management Plan  It is suggested that the starting point for the development of a town planning approach would be the framing up of an overall strategy or alcohol management plan. Aspects of the Alcohol Management Plan should be included in the preparation of local planning strategies.  Research data collection and analysis are important steps in developing a community profile. This research process needs to be ongoing in order to build a solid database. This database should cover local evidence on what the impacts of existing licensed premises are having on those ‘at risk’ persons and on amenities.  This database is important in considering a planning approval or a licence that gives rise to a conclusion that a proposal should or should not be approved. Evidence should help consider the risk of harm or ill-health or negatively impact the surrounding amenities.

Local Planning Strategies  Local planning strategies are an important opportunity to include the strategic intention of how a Local Government intends to deal with planning matters involving alcohol management and the outcomes it is aiming to achieve.

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 A local planning strategy should: - set out the long-term planning direction for the Local Government; - apply State and regional planning policies; and - provide the rationale for the zones and other provisions of the scheme.  Although local planning strategies are stand-alone documents, their usefulness and strength is increased if they closely link to other strategic and operational policies and documentation of an organisation. In this instance, examples would include an Alcohol Management Plan and the Strategic Plan (Plan for the Future – Community Plan).  The strategy sets out the Local Government’s objectives for future planning and development and includes a broad framework by which to pursue those objectives. The strategy needs to address the social, environmental, resource management and economic factors that affect, and are in turn affected by, land use and development.  Decisions made under a local planning scheme must generally conform with the local planning strategy.  Local planning strategies could make statements about how different types of alcohol- related development and activity are viewed and about locational preferences for different types of related uses, within the context of relevant planning considerations including social and physical amenity.

Place Planning and Development  It is now common that Local Governments take a ‘place making’ approach to key locations, most notably for town centres, to maintain aesthetic appearance and arrange management of community activities.  A Place Management approach involves: - Actively leading, facilitating and coordinating the delivery of actions and strategies; - Effectively communicating and championing the vision for the centre/place; - Generating a positive approach to the development of the centre, engendering interest, enthusiasm and excitement in the pursuit of the vision; - Making efficient use of available resources; - Integrating and prioritising all social, community, economic, marketing, physical and environmental initiatives; - Engaging all parties in the process and creating partnerships; and - Recognising and resolving the diverse and often competing views of stakeholders.  Alcohol can impact on the synergy of the place management approach.  When venues that focus on the sale and supply of alcohol form a key aspect of an activation strategy, there are potential amenity, harm and safety issues that arise and warrant consideration within the place management approach.  Major cities across the world are reconsidering the balance of alcohol outlets versus other activities as a result of increasing amenity, health, harm and safety problems.

Structure Plans  Structure plans and detailed area plans are tools that councils can develop to apply to specific areas of a locality. These tools set out specific rules governing where new land uses and developments can occur and specify the standards for building and operating new structures.

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 As with most commercial enterprises, activity centres and corridors are the most obvious locational preferences for developments involving a liquor licence. In addition to other considerations, it is recommended that structure plans consider the impact of alcohol availability not only in terms of the numbers of people it may attract to an area, but also the impacts it may have on overall vision statements for health, harm and safety that are commonly expressed in Local Government strategic plans and local planning strategies.

Design Guidelines  Having a good physical design of an activity centre or any other public space is not in itself enough to ensure that alcohol-related problems do not occur. Good design must be supported by programs and activities that keep a centre or place alive and active.  The Western Australian Planning Commission’s Designing Out Crime Planning Guidelines (2006), Local Government Alcohol Management Package (2009) and publications provided by the Victorian Department of Planning and Community Development provide guidance in regard to designing safer environments and place making techniques.  Support can be provided through a range of town planning considerations to address a number of matters, including: security; surveillance; landscape; sightlines and way finding; urban structure; building design; and road safety.

Statutory Planning and Policy Development  To be effective in ensuring desired outcomes, regulatory approvals systems need to provide a clear, coordinated and defined interrelationship between policies, structures and processes that is intuitive to apply and readily legible to users. A lack of well understood and documented internal processes and procedures compounds problems of a system that is not intuitive or readily legible to users.  There are a number of existing planning tools that can be applied in a Local Government planning situation to assist in the control of liquor outlet development.

Scheme Objectives  The aims of a scheme differ between Local Governments and the Model Scheme Text allows for individual Local Governments to include aims and objectives specific to their unique situations. All schemes must include the aim of assisting the effective implementation of the State Planning Strategy and relevant regional plans and policies but in other respects, the aims will reflect the particular local circumstances.  The statement of aims should be drawn from the local planning strategy (which may include the vision from the alcohol management plan) to set the context and provide a broad indication of what the scheme is trying to achieve and the general directions for land use and development in the area.  More specific and detailed objectives can be identified and these may relate to particular policies or precincts, zones or special control areas and should be incorporated in the relevant part of the scheme text. The objectives will explain in a more precise way how the aims are to be achieved.  In relation to assisting with guidance on alcohol-related development and control, some scheme objectives could include reference to such matters as compatibility and sensitivity of land use mix, safety and health and promoting a balanced mix of diverse land uses. There

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may be instances where more specific objectives are appropriate, depending on the individual Local Government’s strategic outlook and particular situation

Adopt Policies  A planning policy can provide a degree of flexibility in assessment and determination of development applications. It provides guidance for what is generally accepted or not accepted, however, it allows for exceptions. The process to develop or amend a local planning policy is also quicker and easier than amending a local planning scheme provision.  Local Planning Policies are a way for Local Governments to incorporate provisions relating to the treatment of licensed premises.

Cumulative Impact Assessment  Cumulative impact can be perceived as both positive and negative and is one of many planning matters to be considered when assessing an alcohol-related planning application.  Factors affecting potential cumulative impact include location, mix and number of venues present, the manner in which they are managed and the capacity of the local area to accommodate those venues. Other jurisdictions have acknowledged the issue of cumulative impact and provide examples for Local Government planners when assessing alcohol-related development applications. While some of the examples have limitations, they are a starting point for considering such issues in the Western Australian context.

Define ‘Liquor Store’ as different from ‘Shop’ or ‘Retail’  Differentiating between shops/retail and various types of liquor stores allows a Local Government to have greater control and flexibility when considering these uses in particular locations and circumstances.

Change ‘P’ Uses  For greater management and control for a certain use involving a liquor licence in a particular zone, it is essential to ensure that the local planning scheme text reflects this in the zoning table by attributing it with a ‘D’, ‘A’ or ‘X’ use listing, rather than ‘P’.

Control of Size  Controls could include the use of definitions and use of the zoning table in the local planning scheme (statutory) or through local planning policy (non- statutory).  The growing trend to develop ‘big-box’ liquor stores has introduced planning, harm and health considerations for which many Local Governments may not be adequately prepared to address.  A planning management solution could include the restriction of floorspace for liquor outlet uses to certain locations where they are more appropriate. This approach is similar to the way ‘shop’ and ‘showroom/warehouse’ uses are considered.

Development Requirements  A local planning scheme can include a set of standards and development requirements designed for the individual Local Government and these could include specific requirements for alcohol-related development.

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Development Control

Application Procedures – Access to Relevant Information  More specific application requirements involving liquor-related development could be written into a local planning scheme text or stated in a policy to ensure that all the necessary information is available to those making assessments and decisions regarding applications.

Matters to be Considered  Specific matters for consideration when dealing with alcohol-related development can be specified in a local planning scheme text (in addition to matters listed in the Model Scheme Text) or local planning policy.  Consideration of ‘amenity’ can often present a challenge for planners when assessing alcohol-related development proposals.  Economic and moral considerations are not generally acceptable planning considerations.

Check Compliance  Compliance is checked at application stage and also needs to be followed up at the operational stage.

Section 40 Certificates  Section 40 certification is a requirement under liquor control legislation and does not constitute development approval under planning legislation. Therefore, planning approval is still required for development (including use) of land or premises in addition to the issue of a liquor licence, prior to operations commencing.  The ability to recommend conditions for a liquor licence approval is greatly empowering to Local Government and should be used to its full potential. However, whilst Local Government can strongly influence a liquor licence application by recommending conditions via a Section 40 certificate, it must be acknowledged that Local Government has no decision-making powers in this part 2 of the liquor licence process.  Conditions may reflect what is already covered in a development approval thus providing further control, or may include conditions additional to such an approval.  Conditions may also apply to a premise or use that has not yet received development approval. Conditions may be recommended at the initial assessment for a Section 40 certificate and further conditions or changes to previous conditions may be recommended based on submissions received during the advertising process for the liquor licence.  It is important that Local Governments have a clear framework to support the recommendation of conditions that reflect the overarching policy of the organisation.

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Public Interest Assessments  Public Interest Assessments (required by the Department of Racing, Gaming and Liquor in most liquor licence applications) will assist Local Government planners to assess applications for a section 40 certificate and planning applications.

Use of conditions, management plans and scope of approvals  Local governments may apply conditions to Section 40 certificates and conditions of development approval to address liquor licence issues.  Local governments may apply scope and time limitations to development application approvals.  Any conditions imposed need to be supported by the Local Government planning framework, including statutory controls and policy statements.

Quick Guide  To assist each individual Local Government build a framework to suit their own local situation a ‘quick guide’ has been developed and is shown as Appendix F – Quick Guide to Alcohol-related Development Management in Part 3 of this Guideline. This Quick Guide gives a brief indication of the type of tools available to be employed to manage different aspects of alcohol-related development and can be used in conjunction with the process model. Concluding Comments  For those Local Governments seeking assistance to work towards the management of alcohol-related harm, there are a number of existing town planning tools available that may be employed more effectively through appropriate strategic planning processes and more specific development control mechanisms.  This guideline identifies these and presents models for consideration to assist in the strengthening or ‘firming up’ of existing Local Government town planning frameworks to ensure that alcohol-related development is part of the policy agenda.

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5.11 Integrated Strategic Plan for Emergency Management / Bushfires Governance in WA (05-024-03-0028 EF) By Erin Fuery, Senior Community Policy Advisor

Moved: Cr D Thompson Seconded: Cr J Brown

That the Association advocate to the Minister for Emergency Services for a vision and long term Strategic Plan for Emergency Management in WA to be developed as a matter of urgency.

RESOLUTION 253.4/2013 CARRIED UNANIMOUSLY

In Brief  The State Emergency Management Committee (SEMC), Department of Fire and Emergency Services (DFES), Department of Premier and Cabinet, Department of Planning and other agencies are progressing reviews and developments related to various aspects of emergency management arrangements in WA.  These projects are being progressed by the State at the same time, without the benefit of an overarching vision or strategy, making it difficult for Local Governments to identify and assess the collective impacts of the proposals.  The Association is advocating that the State must develop a strategic plan to clarify objectives, of the role of Local Government in emergency / bushfire management so that the full impacts and resourcing requirements can be identified.

Attachment Nil.

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Policy Implications Nil

Budgetary Implications Nil

Background Community expectations, recent major events and proposed legislative change are changing the emergency management landscape. This is resulting in an expanded, but as yet undefined role for Local Governments, increasing the risk that Local Governments are non-compliant or unable to adequately address requirements due to a lack of clarity or inadequate resources.

A number of changes have been implemented at the State level since the first Keelty Report A Shared Responsibility. These changes to fire management in WA have predominantly focussed on the Fire and Emergency Services Authority restructure into a Department, operational policy and practice for prescribed burns undertaken by Department of Parks and Wildlife (formerly DEC) and the establishment of the Office of Bushfire Risk Management.

However, key reforms that require a ‘whole-of-government’ approach such as land use planning, bushfire risk management, management and resourcing of volunteer brigades and better coordination and integration of mitigation, response and recovery are still to be delivered.

Key projects currently underway include:

 Adoption of the National Strategy for Disaster Resilience;  Emergency Services Legislation Review;  Potential transfer of responsibility for volunteer bushfire brigades;  Development of Bushfire Risk Management Plans;  Development of the State Risk Framework; and  Review of the Emergency Services Levy

Comment Despite there being many Commonwealth, State Government, Local Government and emergency service organisations involved in prevention, preparedness, response and recovery arrangements in WA, it is clear that there is no consistent vision or strategic plan that sets out the future emergency management arrangements that we are seeking to achieve for WA communities.

The Association has received several comments and/or questions from members about the need for an overarching vision or plan to ensure clarity and integration of the many projects and reviews that are occurring at a State Government level. Examples of the interrelated strategies / projects include:

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 Development of the State Risk Framework; and  Review of the Emergency Services Levy

Local Governments are concerned they are being asked to comment on individual aspects of proposed reforms to emergency management, without the benefit of an overarching vision or even a clear outline of the State’s goals and objectives. There are many interdependencies in the projects underway and it is clear from the discussions that WALGA has had with various agencies, that these have not been considered.

It is imperative that a long term vision and integrated strategic plan is developed to outline the State’s objectives for emergency management arrangements in the future (similar to the Victorian Government’s Emergency Management Reform White Paper) to:

 ensure the State moves towards a genuine all-hazards all-agencies approach  guide the review of emergency management legislation  recognise the importance of local government and volunteers  develop common training and operating platforms to ensure better delivery systems for emergency services  identify initiatives to retain and grow the volunteer sector  achieve greater community involvement in emergency management and  increase community resilience and empowerment.

Without this the sector will be unable to identify:

 Local Government’s statutory obligations;  What aspects of bushfire prevention, preparedness, response and recovery (PPRR) Local Governments are required to undertake;  What expertise and equipment Local Governments require to meet these responsibilities.

Given the changing requirements at all levels of government, a 'road map' for emergency management reform is required to ensure an integrated, whole-of-government, all hazards approach, and that the resources and expertise needed to achieve more resilient and safer communities are allocated.

The development of a long term ‘roadmap’ will not only assist the Local Government sector in this area, but also provide clarity for the State and other stakeholders.

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MATTERS FOR CONSIDERATION BY STATE COUNCILLORS (UNDER SEPARATE COVER)

5.12 Selection Committee Minutes (01-006-03-0011 MD) By Margaret Degebrodt, Governance Support Officer

Moved: Cr J Brown Seconded: Mayor C Adams

That the recommendations from the Selection Committee Meeting Minutes dated 21 June 2013 be endorsed by State Council.

RESOLUTION 254.4/2013 CARRIED UNANIMOUSLY

5.13 Finance & Services Committee Minutes (01-006-03-0006 TB) By Tony Brown, Executive Manager, Governance and Corporate Services

Moved: Cr W Barrett

Seconded: Cr L Short

The Minutes of the Finance and Services Committee Meeting of 17 July 2013 be received.

RESOLUTION 255.4/2013 CARRIED UNANIMOUSLY

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5.14 Use of the Association’s Common Seal (01-004-07-0001 RB)

By Ricky Burges, Chief Executive Officer

Moved: Mayor R Yuryevich Seconded: Mayor C Adams

That the use of the Association’s common seal for the following purposes be noted:

State Document Council Document Signatory Description prior approval Mayor Troy Pickard Transfer of Land Ricky Burges – Lot 102 on Diagram Transfer of 687528 WALGA & Trout Holdings No Land 15- 17 Altona St, Pty Ltd and BR3 Pty Ltd West Perth

Application for a New Title QUEBE and WALGA (Mayor Lot 500 on Diagram Application Troy Pickard and Ricky No 57374 for new title Burges) Lot 50 on Diagram 54338

Mortgage for Mayor Troy Pickard amalgamated titles Ricky Burges Mortgage No for 168 Railway Pde, WALGA Leederville QUBE

RESOLUTION 256.4/2013 CARRIED UNANIMOUSLY

5.15 Proposal for the 2014 Regional Meeting of State Council (01-004-02-0002 CO) By Chantelle O’Brien, Executive Officer, Governance and Strategy

Moved: Mayor D Ennis Seconded: Cr C Mitchell

That the annual Regional State Council Meeting for 2014 be held Thursday 8 to Friday 9 May in Merredin, with a regional forum to be held with the Councils from Great Eastern Country Zone.

RESOLUTION 257.4/2013 CARRIED

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Dr Shane Silcox left the meeting at 6.05pm and did not return.

6. MATTERS FOR NOTING / INFORMATION

6.1 Road Wise Funding Reduction (WFS) By Wayne Scheggia (DCEO)

Moved: Cr J Brown Seconded: Mayor D Ennis

That the State Government’s reduced funding to the Road Wise program be noted and WALGA advocate strongly for the reinstatement of the funding.

AMENDMENT

Moved: Cr J Brown Seconded: Mayor D Ennis

1 That the State Government’s reduced funding to the Road Wise program be noted and WALGA advocate strongly for the reinstatement of the funding. 2 A further report be presented to the next State Council Meeting proposing a new Road Wise Program structure maximising opportunities for Local Government, Community and Road Safety engagement. CARRIED

THE AMENDMENT BECAME THE MOTION

RESOLUTION 258.4/2013 CARRIED UNANIMOUSLY

In Brief  The State Government has reduced 2012–2013 funding to the Road Wise Program by $1.8M  Delivery of road safety program support to local communities will be impacted

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 Community grants have been eliminated  Staffing within the program has effectively been reduced by 25%

Relevance to Strategic / Business Plan Enhancing the capacity of Local Government to deliver services

Policy Implications Nil

Budgetary Implications  Reduction in grant funding of approximately $1.8 million.  Recurrent budget income reduction of approximately $200, 000

Background A meeting was called by Road Safety Minister Liza Harvey on Monday August 12th to advise the WALGA CEO that funding to the Association for the Road Wise program had been significantly cut and that the Association was expected to cover any associated redundancy cost and forgo any overhead cost recovery in the future funding model.

This proposition was rejected and a counter proposal put to operate a program based on the reduced grant budget but within the parameters of the Association’s financial operating policies.

Comment The Minister has accepted that the Association must and will apply its standard financial operating policies to the administration of all and any grant funds provided by the government.

This arbitrary funding decision by the State has significantly impacted the operation of the Road Wise program, with the effective redeployment or redundancy of 6.3 FTEs, covering both metropolitan and rural communities.

Specific reductions in activity resulting from the Minister’s funding direction include:

 No Community Road Safety Grants (1 FTE position gone)  No Local Government capacity building for safe system implementation (2.4 FTEs gone)  No Regional Youth Road Safety Project (0.4 FTEs)  Reduced Child Car Restraints – no telephone information line, 6 down to 5 training courses, (0.4 down to 0.3 FTE)  Reduced regional service delivery  Reduced capacity to develop and deliver road safety promotions, tools and resources

The Secretariat believes an effective program can still be delivered that will continue to add value to local communities in terms of road safety initiatives, but this will now be focused on advice, information and community support and development based initiatives, with the Minister specifically directing that the Association abandon delivery of the Local Government Safe Systems Program, the Community Grants Program and the Regional Youth Road Safety Program.

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6.2 Affordable Housing: Opportunities for Local Government Background Paper (05-036-03-0020 CG) Christopher Green, (Planning Coordinator Reform and Improvement)

Moved: Mayor H Zelones Seconded: President Cr K Chappell

That the Affordable Housing: Opportunities for Local Government Background Paper and the Metropolitan Mayors Policy Forum action items be noted.

RESOLUTION 259.4/2013 CARRIED

In Brief  In recent years, the cost of housing in Western Australia has risen dramatically, largely as a result of strong housing demand caused by unprecedented rates of migration. The lack of affordable homes in many areas of the State has meant that securing a supply of affordable homes has become an increasingly critical issue to resolve.  At the request of the Metropolitan Mayors Policy Forum, the Association has prepared a paper examining matters concerning the supply of affordable homes and possible Local Government responses to help resolve these issues. Attachment

Affordable Housing: Opportunities for Local Government Background Paper

Policy Implications Nil.

Budgetary Implications Nil.

Background In recent years, strong housing demand has caused the cost of housing in WA to rise dramatically. The scarce availability of affordable homes in many areas has meant that securing a supply of affordable homes has become a critical, if difficult challenge to achieve. Nevertheless, a number of Local Governments have been, or are attempting to address this

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issue through local planning schemes amendments and/or the release of Local Government land for housing development.

Indeed, the increasing prominence of affordable housing as an issue within the Local Government sector is such that the Metropolitan Mayors Policy Forum requested that the Association prepare a paper examining the issue and identifying possible Local Government responses to the lack of affordable housing. In summary, the paper found that;

 Construction is the single biggest contributing factor towards the cost of new housing schemes. Other significant factors include the price of land, government fees and charges and developers profit.  Despite the high cost of land within Western Australia, there is a sufficient supply of housing land available to satisfy demand.  Although mandatory affordable housing contributions have been successful in both Australia’s eastern states and internationally, such requirements are not supported by the State Government.  Most of the responses adopted by Local Governments in Western Australia have focused upon promoting affordability indirectly by increasingly the supply of smaller homes.  Although limited, there has been some successful, direct involvement in the provision of affordable homes by WA Local Governments, notably the City of Perth’s Key City Worker Housing Project and the Shire of Capel’s affordable seniors housing scheme  Given the plentiful supply, but high cost of housing land, measures to encourage the release of land for development, such as the levying of higher rates on vacant could be considered by Local Government.

Comment At its July meeting, the Metropolitan Mayors Policy Forum, endorsed the ‘Affordable Housing, Background Paper’ for presentation to WALGA’s State Council.

The background paper highlights the fact that most of the key responsibilities concerning the supply of affordable homes such as land supply, taxation, and building standards reside with the State’s and Commonwealth Governments, whilst the single largest cost associated with the provision of new homes is the cost of total construction (land and buildings). Other significant factors include the price of land, government fees and charges and developers profit.

On this basis, and given that mandatory affordable housing contributions are not supported by the State Government, opportunities for Local Government to influence the supply of affordable homes are generally limited. Nevertheless, the paper identifies a number of initiatives undertaken by Local Governments which have been successful in increasing the supply of affordable homes, including;

 The adoption of planning provisions which encourage the development of smaller and therefore lower cost homes as adopted by the City of Fremantle, Swan and Vincent.  Direct involvement in the provision of affordable housing through the release of Local Government owned land. Such initiatives include the City of Perth’s Key City Worker Housing Project and the Shire of Capel’s affordable seniors housing scheme.  Methods to encourage the release of housing land for development such as the levying of higher rates on vacant properties as currently undertaken by the City of Perth.

Having considered the Background Paper, the Metropolitan Mayors Policy Forum resolved that the Association undertake the following actions:

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1 Continued advocacy in relation to rating inequities, in particular the rating of State Government trading entities including LandCorp; 2 Further investigation and subsequent distribution to Local Government of differential rating strategies that can be used to discourage ‘land banking’ by developers 3 Further research into different models and options, including but not limited to differential rating, for affordable housing 4 Investigation into shared equity schemes and models with the view to WALGA hosting a forum that links Local Governments and developers 5 Pursuit of a grant from Lotterywest to be used to develop tools and models in relation to affordable housing for Local Governments 6 Collation and distribution of information about the proportion of social housing and affordable housing by Local Government area in metropolitan Perth.

In accordance with the Metropolitan Mayors Policy Forum recommendations the Association is now beginning the process of delivering the actions items identified on the behalf of the whole of the Local Government sector.

As part of the process of investigating affordable housing issues and possible solutions, the Association will explore opportunities to work in partnership with other stakeholders involved in the housing sector with the intention of developing guidance that will benefit all Local Governments right across the State. Furthermore, it is anticipated that any guidance developed by the Association, will be done so in conjunction, and will support the principles of WALGA’s ‘Planning Improvement Program’.

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Item 6.2 - Attachment

Affordable Housing: Opportunities for Local Government

BACKGROUND PAPER

July 2013

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Contents

EXECUTIVE SUMMARY ...... 151 1. INTRODUCTION ...... 153 1.1 Purpose of the report ...... 153 1.2 What is affordable housing? ...... 153 1.3 The benefits of providing affordable homes ...... 154 1.4 Useful definitions ...... 155 2. ISSUES AFFECTING HOUSING AFFORDABILITY ...... 157 2.1 Issues affecting housing affordability ...... 157 2.2 Government roles and responsibilities ...... 159 2.3 The local context ...... 160 2.4 Housing cost breakdown ...... 162 2.5 Land Supply in Western Australia ...... 165 3. DELIVERING A RESPONSE ...... 167 3.1 International responses ...... 167 3.2 National responses...... 168 3.3 State responses ...... 170 3.4 Local responses ...... 171 3.5 WALGA State Council Resolutions/Commitments ...... 174 4. OPPORUNTIES FOR LOCAL GOVERNMENT TO RESPOND ...... 175 4.1 Land use planning mechanisms for affordable homes ...... 175 4.2 Local Government land release & land holdings partnerships ...... 178 4.3 Other possible options ...... 179 4.4 Checklist for designing and delivering affordable housing projects ...... 180 APPENDIX 1: Perth Housing Construction Costs ...... 182 APPENDIX 2: Evaluating land holdings: Guidance for decision making ...... 184

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EXECUTIVE SUMMARY

In recent years, the cost of housing in Western Australia has risen dramatically. In the last ten years within the Metropolitan area, median house prices have risen from just over $200,000 to almost $500,000, whilst in many Pilbara towns the median cost of renting a three-bedroom house is now well in excess of $1,000 per week. Principally this rapid increase in housing costs has been caused by strong demand with high levels of international and interstate immigration combined with high construction costs. For these reasons securing a supply of affordable housing is becoming increasing challenging and critical. Affordable housing not only supports vibrant and diverse communities, it is essential to the State’s economic development. Without affordable housing, increased wage demands mean Western Australia's economy suffers.

Affordable housing is principally housing that is affordable to those households in lower or middle parts of the income scale. Affordable Housing is widely accepted as costing no more than 30% of household income for the lowest 40% of household income earners.

Various studies have shown that most of the key responsibilities, such as land supply, taxation, and building standards reside with the State’s and Commonwealth Governments, whilst the single largest cost associated with the provision of new housing schemes is construction. Even so, the housing develop industry remains reluctant to introduce innovation into their products, instead preferring to refine traditional construction techniques rather make wholesale change. Nevertheless, despite these challenges and having a lesser role, Local Governments can play important part the provision of affordable homes.

It is often claimed, particularly by the development industry, that a shortage of land is the primary obstruction to providing affordable homes. Whilst this may be true in some areas of the State, such as the Pilbara, the same cannot be said in the Metropolitan region where there is clear evidence that there is a plentiful supply of housing land. Here, the existing supply of land combined with the existing planning policy regime is such that the existing housing land supply is predicted to satisfy demand until 2063. Therefore the identification and release of further housing land by Local Governments is, in itself, unlikely to have any significant impact upon the cost of housing. That is of course, unless additional land is released with the specific purpose of providing affordable homes.

For these reasons, opportunities for Local Government to influence the supply of affordable homes are generally limited to the adoption of local planning scheme and policy provisions. It is however, important to recognise that whilst mandatory affordable housing contributions have been successful both in the eastern states and internationally, mandatory contributions are not support by the State Government as expressed through the Department of Housing’s ‘Affordable Housing Strategy’.

Despite this context, a number of Local Governments in Western Australia have made good progress towards increasing the supply of affordable homes, particularly through planning scheme provisions, such as the City of Fremantle, Swan and Vincent. Here, the adoption of scheme provisions which

Note: the cost of construction includes the wider costs associated with the construction of new homes including the cost of subdivision construction, demolition, etc. It is not simply the cost of construction of a single dwelling.

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encourage the development of smaller homes has proven to be effective in promoting a greater variety in the housing stock and increasing the supply of lower cost housing, if not directly leading to the development of affordable homes. As such, it is evident that despite the framework within which Local Governments must operate, only targeted solutions are effective in securing a supply of affordable homes. Such solutions include Local Governments identifying areas suitable for higher density development in which larger development opportunities can support the provision of affordable homes without being economically jeopardised through mandatory requirements.

Alternatively, Local Governments may choose to be more directly involved in the provision of affordable housing through partnership arrangements. Successful project examples include the City of Perth’s Key City Worker Housing Project and the Shire of Capel’s affordable seniors housing scheme. Meanwhile, the shortage of housing available has become so severe in the Pilbara that the Town of Port Headland is seeking to undertake a land exchange with a developer in order to provide staffing accommodation for the Town. Whilst schemes such as these have been successful, to date they have delivered relatively few numbers of affordable, or below market cost homes. Furthermore it is important to note that all these schemes were reliant on the development of Local Governments land. However, it is unlikely that sufficient numbers of Local Governments have abundant quantities of unused or underutilised land, located in appropriate locations for affordable housing available for redeveloped in order to make a significant contribution to the supply of affordable homes. Nevertheless, the success of the schemes like those in Capel, Perth and Port Hedland mean that these options should be carefully considered by Local Government.

Evidence suggests that the relatively high cost of land and therefore housing, particularly in the Perth Metropolitan region is not caused by a shortage of land, but rather the limited release of land. To increase competition and thereby lowering the price of land, measures should be sought to increase the speed with which housing land is made available to the market. Such measures may have the added benefit of encouraging the redirection of housing and development investment away from longer term land holdings which add to affordability problems and into actual development helping to alleviate the problems. On this basis, Local Governments could elect to levy higher rates on vacant properties as currently done by the City of Perth.

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1. INTRODUCTION

 1.1 Purpose of the report

The rate of population and economic growth experienced in Western Australia has been such that housing affordability has become an increasingly important issue. Furthermore, if the State’s continued population growth forecasts are realised, housing affordability will soon become a critical issue for Governments to address.

In response to these challenges, the purpose of this paper is to provide an overview of the issues affecting the affordability of housing in Western Australia and to highlight possible solutions that Local Governments can offer in increasing the supply of affordable homes.

 1.2 What is affordable housing?

Affordable housing is essentially, housing that is affordable to those households in lower or middle parts of the income scale. In Western Australia, affordable Housing is defined by The Department of Housing as;

“Dwellings which households on low-to-moderate incomes can afford, while meeting other essential living costs. It includes public housing, not-for-profit housing, other subsidised housing under the National Rental Affordability Scheme together with private rental and home ownership options for those immediately outside the subsidised social housing system.” 16

Housing that is considered to be affordable is generally accepted as costing no more than 30% of household income for the lowest 40% of income earners, whether it be rental or owner occupied accommodation. It is important to note that the provision of ‘affordable housing’ is not limited to a single sector, it may be provided by either, the public, community or the private sector, or through partnership between different bodies within these sectors.

It is important to recognise the distinction between ‘low cost’ housing and ‘affordable’ housing. Low cost housing may not be ‘affordable’ to low or moderate income earners. It simply relates to relative price of housing. Alternatively, ‘affordable housing’ relates to the ability of residents on low to moderate incomes to be able rent or purchase housing without falling into ‘housing stress’. Affordability therefore benchmarks housing costs against income of such households.

Another term often used is ‘housing stress’ which is defined as low to moderate income earning households spending more than 30% of gross household income on housing. Households spending more than 50% of their income on housing are considered to be in ‘housing crisis’ or ‘severe housing crisis’.

16 Department of Housing, (2010), Opening Doors Affordable Housing Strategy 2010-2020

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Most of the affordable housing stock in the Perth metropolitan area has traditionally been provided by the private sector, albeit with some form of government assistance, such as the Commonwealth Rental Assistance (CRA). Nevertheless, the supply of affordable housing accommodation in Perth and across Western Australia is rapidly diminishing with increased demand giving rise to increased housing costs.

 1.3 The benefits of providing affordable homes

As Western Australia’s population continues to grow, a continued supply of affordable housing is needed to support this growth. Providing affordable housing is vital, as well as enabling vibrant and inclusive communities to prosper, affordable housing also supports the State’s economic development. “Housing affordability is important not just because of the costs borne by the individual households experiencing high housing costs, but also because it imposes costs on the wider economy and society” (Yates & Milligan, 2007)17. Without affordable housing, the health of the entire community diminishes.

In areas of Western Australia where house prices are high, business and economic activities are placed at a competitive disadvantage as a result of increased wage demand pressures as employees seek to overcome the high cost of housing. The Department of Housing, Affordable Housing Strategy contends that ‘if left unattended, the shortage of affordable housing will lead to growing levels of financial and personal stress and also economic underachievement’. 18

In many areas where people are faced with a high cost of housing, many have chosen to ‘move out’ and relocate to more affordable housing areas. This displacement has helped to fuel increased demands on infrastructure, particularly transport systems with people travelling longer distances and commuting between their home and places of work and recreation. In turn, this can lead to all the problems associated with city sprawl including traffic and transport congestion, air pollution, environmental degradation, and lead to increased demands for public funds to build new roads, public transport facilities, schools, and other services.

It is important to note that despite the claims often made by some; new affordable development does not have a negative impact upon nearby property values. Numerous international studies assessing the impact of affordable housing development have found that affordable housing does not depress neighboring property values and may even cause a rise in pre-existing property prices in certain instances. Indeed, where affordable housing development replaces a vacant lot, or dilapidated building, neighboring properties prices are likely to rise whilst Local Governments also benefit from the increased rates base19. A number of studies found that the quality of development design, management and maintenance have a far greater impact that the ‘type’ of development built.20

17 Yates, J & Milligan, V (2007) ‘Housing affordability: a21st century problem’ AHURI Final Report No. 105 18 Department of Housing, (2010), Opening Doors Affordable Housing Strategy 2010-2020 19 Cohen, R and Wardrip, K, (2011) ‘The Economic & Fiscal Benefits of Affordable Housing’ Planning Commissioners Journal Article 501 20 Center for Housing Policy ‘Don’t Put it Here!’ viewed 29 April 2013, www.nhc.org/media/documents/Dontputithere.pdf

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 1.4 Useful definitions

Key Terms

Affordable Housing Housing that is affordable for households on low to moderate incomes, when housing costs are low enough to enable the household to meet other basic long-term living costs. For example, housing costs should be less than 30 per cent of household income for occupants in the bottom 40 per cent of household incomes.

First Time Owners / Those who do not, or have not previously owned a residential property Buyers anywhere in Australia

Housing Association Are usually independent, not-for-profit organisations that provide affordable homes and special needs homes (for rent or to purchase).

Housing Stress Housing stress Generic term to denote the negative impacts for households with insufficient income to secure adequate housing. It can also refer to other factors such as over-crowding and insecurity.

The condition of households (in the bottom 40 per cent of income distribution) paying more than 30 per cent of their gross income on mortgage or rental repayments.

Low Cost Housing Low cost housing is housing that is priced for either sale or rent at a rate generally below that of the market. However, it may not necessary be ‘affordable’ to low or moderate income earners. It simply relates to relative price of housing.

Shared Ownership Means that the home buyer purchases a property in conjunction with (or Shared Equity) another body, so there are two owners.

The objective of this arrangement is to minimise overall costs for the buyer. For example in WA, the Department Housing may purchase 20 per cent of the property, which means the home buyer is only responsible for total repayments on 80 per cent of the property.

Social Housing Rental housing that is provided and/or managed by government or non- government organisations, including public and community housing.

Special Needs Housing Special needs housing is housing that is designed for those with particular needs such as the elderly and disabled.

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Key Programs

Commonwealth Rent A non-taxable Commonwealth Government supplementary payment Assistance (CRA) added on to the benefit or family payment of people who rent in the private rental market above applicable rent thresholds.

First Home Owner The State Government's First Home Owners Grant offers $7,000 to first Grant home owners who satisfy all the eligibility criteria.

The grant is not a loan and does not need to be repaid. Home buyers can use the grant to cover their deposit and loan fees. (Not available on land- only loans). The balance of the grant can be used for other purposes. Further information on the First Home Owners Grant can be obtained from the Department of Finance’s website.

Government Regional To support the achievement of government objectives, the Department of Officers’ Housing Housing provides housing to facilitate the attraction and retention of staff (GROH) Program. (such as teachers, health workers and police) in regional and remote locations. The Department leases properties to government agencies. These properties are sub-leased to government employees at the discretion of their employing agency.

Keystart Home Loans The Department of Housing offers a range of home ownership products through its lending provider, Keystart Home Loans to assist Western Australians into affordable housing.

These loan products help eligible people to buy their own homes through low deposit loans and shared equity schemes. Specific loan assistance is available for public housing tenants, sole parents, people living with a disability and Aboriginal borrowers.

National Rental The National Rental Affordability Scheme (NRAS) is an Australian Affordability Scheme Government initiative which, through partnership with the states and territories, aims to significantly increase the supply of new affordable rental dwellings across Australia.

Under this scheme properties will be rented to eligible low-to-moderate income tenants at 20 per cent or more below market rent.

Royalties for Regions Regional development in WA may be supported by State Government through its Royalties for Regions funding program. The program seeks the reinvestment of 25% of mining and onshore petroleum royalties into regional WA each year.

Investment is channelled into projects that;

 Building capacity in regional communities  Retaining benefits in regional communities  Improving services to regional communities  Attaining sustainability  Expanding opportunity  Growing prosperity

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ISSUES AFFECTING HOUSING AFFORDABILITY

 2.1 Issues affecting housing affordability

In summary, there are just two key factors which affect the cost of housing, firstly, the supply of homes, and second the demand for homes. Nevertheless, housing affordability is a complex issue with many factors affecting both the demand and supply of homes, as demonstrated by figure 1 below. Factors affecting the demand for homes include, demographic and behavioural factors, including increased life expectancy, smaller household sizes, and migration. Whilst factors that influence the supply and affordability of homes include “the availability and cost of land for development, finance constraints and costs, policies and processes related to development approval, the construction process itself, and the capacity of the labour force to support innovation.” 21 a. Housing Demand Whilst housing demand is mostly driven by migration and other demographic factors, there are a range of factors which affect demand, not just simply population. The National Housing Supply Council argue that the drivers of housing demand “are a complex mix of economic, political, social and demographic forces”.22 Further, it is important to recognise that demographic factors can themselves influenced by social and economic factors such as the cost of housing. Influences on underlying housing demand have continuously changed over time and will continue to change. Housing demand influences include;

 International and national migration patterns  Regional differences in housing and economic opportunities  Changing household demographics (later partnering and parenting)  Ageing population The latest underlying housing demand (medium growth) projections by the Commonwealth Government indicate that nationally an additional 3,264,900 homes are required by 2030 with 466,900 of those being within Western Australia. However, during this time there will be a gradual but significant change in the distribution of population across the households, with the most significant increase being the growth in lone-person households, reflective of an ageing population23. b. Housing Supply As with demand, a number of factors combine to influence supply, most notably:  Land availability and development process (zoning, environmental & heritage constraints, fees and regulations)  The price of land  Construction costs (labour and materials)  Infrastructure costs  Availability of skilled labour  Availability of finance Housing supply in Perth and Western Australia is discussed in more detail in Section 2.5, below.

21 National Housing Supply Council, (2012), ‘Housing Supply Responses to Change in Affordability’ 22 National Housing Supply Council, (2011), ‘State of Supply Report’ 23 National Housing Supply Council, (2011), ‘State of Supply Report’

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Figure 1: Issues affecting housing affordability Government Policy Shared custody arrangements Environmental Issues Government Policy Ageing in place Protection of groundwater Network City Baby Bonus Protection of wetlands Bush Forever Skilled migration policy Acid sulphate soils Buffer Zones Rare and endangered species Basic raw material extraction

Household Types Market Government Population Growth Lone person households International credit squeeze Changes to Superannuation Overseas migration  Divorce/separation Adequacy of land zoned Government Policy Market Natural increase  Later marriage suitable for urban Rezoning process Stock Market Prices  Widowhood development Structure Planning requirements Return on Alternative Subdivision approval Household Formation Availability/Cost of Supply of Land Processes Investments Development approval Government Finance process Land tax and capital gains tax Building approval process exemption on family home Taxation Concessions Negative gearing on Government Policy investment property Land Development Energy Efficiency Processes and Policies Water Efficiency Access housing First Home Buyer Demand for Housing Supply of Housing Smaller lots (2 storey con- Concessions struction costs) Market Market Cost of labour Higher wages and income Cost of Construction Cost of materials Lowe levels unemployment Potentially less income Real Household Income Government Policy security (contract and part Development Contributions time work) Government Trading Enterprises Government Infrastructure Costs Headworks charges Price of Housing Charges Market Cost of labour Cost of materials

Interest Rates Availability of Skilled Government Policy Skilled Migration Program Labour Market Competition between different industry sectors Cost of Maintaining Maintenance Electricity Household Water

Cost of Accessing HOUSING Employment and Transport costs AFFORDABILITY Services

Rates and Taxes

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 2.2 Government roles and responsibilities

As well as identifying the issues affecting housing affordability, it is important to understand the roles and responsibilities of the various spheres of government in relation to these issues concerning the supply of housing and affordable homes. The COAG ‘Housing Supply and Affordability Report’, 2012 provides a good summary of these responsibilities. The table below shows that Local Government responsibilities are restricted to the planning controls which firstly affect the supply of land locally and secondly controls which affect the cost of construction.

Table 1: Current responsibilities and activities of the three tiers of government

Issue Commonwealth States & Territories Local Government

Macroeconomic stability: a Policies relating to taxation, stable housing market is population, investment, the important for financial sector, as well as a macroeconomic stability. range of housing programs. The residential property market is three times the size of Australia’s annual GDP. Competitive markets: a Policies relating to taxation Taxation policies & well-functioning housing & investment, as well as a infrastructure levies. market — including the range of housing programs. removal of distortions — is welfare-enhancing. Housing supply: a flexible Competitive building & Policies relating to Policies relating to supply response — access development markets. planning, zoning, the building regulations & to appropriate, affordable regulatory environment & approvals, urban Commonwealth housing dwellings located close to taxation, infrastructure planning, infrastructure programs. employment — should levies, as well as the charges, & development reduce cost pressures & administration & delivery assessment processes. improve productivity. of housing services. Housing affordability: Policies that impact directly Policies that impact Policies that impact Australians’ wellbeing is or indirectly on the demand directly or indirectly directly or indirectly enhanced if all individuals or supply-side of the housing on the demand or supply- on the demand or can afford access to market, including those that side of the housing supply-side of the appropriate & secure influence the costs of market, including those housing market, shelter. dwelling construction or that influence the costs of including those that purchase. dwelling construction or influence the costs of purchase. dwelling construction or Commonwealth housing purchase. programs. Administration & delivery of housing services as well as the provision of financial assistance to some renters & home buyers.

Source: National Housing Supply Council, Housing Supply and Affordability Report, 2012.

In confirming the roles and responsibilities identified by the COAG’ Housing Supply and Affordability Report’, The Government of Western Australia through its Community Development & Justice Standing Committee identified the following responsibilities for those involved in the supply of homes;

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Commonwealth Government  Funding to State Government for social housing provision

State Government  Funds and provides social housing

 Management of social housing tenancies

 Oversees land & development approval process

Local Government  Provision of community services

 Key player in land and development approval process

Community Housing  Providers of social housing Organisations Land Development Industry  Provision of residential land and housing

Construction Industry  Building housing including, social and affordable

Finance Sector  Funding for land development, construction and community housing sectors as well housing purchasers

Real Estate Industry  Overseeing the private rental market

 2.3 The local context

Within the Perth Metropolitan Region and also across a number of regional growth hotspots, particularly in the Pilbara, a chronic housing shortage has developed. This has been largely due to three main factors,

 High immigration rates - both international and interstate;  High development costs due to high land and construction costs, and to some extent taxes;  Generally low occupation rates and dispersed patterns of settlement.

Whilst Western Australia’s population has been steadily increasing for the last fifty years, the State has seen unprecedented population growth in the last few years. In 2012, Western Australia experienced record levels of population growth and the highest annual population growth rate since the early 1970s. The resultant housing demand, combined with a down turn in the construction of new housing has led to shortage of supply which in turn has significantly increased the cost of housing across the Metropolitan Region. The resultant pressures have resulted in a significant increase in the cost of housing and led to vacancy rates for rental properties falling to historically low levels, whilst rent levels rise substantially and investment in rental housing declines, particularly in the lower end of the housing market.24 The impact of these housing pressures on housing cost can be seen clearly in figures 2 and 3 below.

24 Disney, J, (2007), Affordable Housing In Australia Some Key Problems and Priorities for Action viewed 30 April 2013 www.ahuri.edu.au/downloads/2007_Events/AHURI_Conf/Julian_Disney.pdf WALGA State Council Meeting 4 September 2013 Page 160

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Figure 2: Median House Prices, Perth. (Source, the Real Estate Institute of Western Australia.)

Figure 3: Rental and Vacancy Rate, Perth. (Source, the Real Estate Institute of Western Australia.)

A recent study by the Community Housing Coalition, WA found that across the entire metropolitan area only 22 rentals out of the 3,179 listed in April 2013 were affordable to an individual or family solely reliant on the State Adult Minimum Wage of $627.70 per week. Retail workers on the general award did not fare much better, with just 38 rentals were affordable to a full-time retail worker at the highest award level of $815 per week.25

Within regional Western Australia housing affordable issues are more acute due the combination of rapid population growth and a lack of homes. Parliament’s Community Development and Justice Standing Committee report, ‘A fading dream- Affordable Housing in Western Australia’ noted that land and housing

25 Community Housing Coalition WA, (2013) ‘Survey: Perth Rental Affordability 2013’ WALGA State Council Meeting 4 September 2013 Page 161

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supply pressures as a result of rapid growth in the resource and other industry sectors has exacerbated the shortage of affordable housing and meant that housing is often beyond the reach of local residents not engaged in the mining industry. As such, these regions have the greatest need for more affordable housing.

The Committee found that the supply of affordable housing in regional areas was affected by;  Higher housing costs than in the metropolitan area;  The difficulty in aligning housing supply with demand; and  A lack of serviced land. Resource industry led housing demand has increased house prices dramatically in a number of areas, most notably in the Pilbara as demonstrate by Table 2, below.

Table 2: The cost of renting a three-bedroom house & the annual median house sale price

Location Rental p.w. (3 Bed House) Annual Median House (Jan - Mar 2013) Sale Price (2012) Port Hedland $1,900 $1,203,500 Karratha (Urban Area) $1,100 $785,000 Broome $620 $657,500 Perth Metropolitan Area $455 $515,000* Albany $300 $499,000 Greater Bunbury $313 $365,000 Source: Real Estate Institute of Western Australia Note: *Calculated using aggregated Median suburb information.

As a result of rising house prices, tenure patterns have changed significantly. Fewer younger and middle- aged people now own their own home and across all age groups, fewer own their home outright. However the rate of home ownership has remained around 70% of households in private dwellings largely as a result of the high rate of ownership amongst older people.

Affordability pressures have arrested the decline in average household size with more young adults remaining longer in their parental home. There is also evidence to suggest that land affordability has resulted in an increase of the number of larger homes with four or more bedrooms through suburban redevelopment with existing smaller houses being replaced with larger homes.26

 2.4 Housing cost breakdown

Prior to the appointment of the current National Housing Supply Council, the Commonwealth Government’s Department of Sustainability, Environment, Water, Population and Communities commissioned the National Dwelling Costs Study, to examine the cost of developing new infill and greenfield in five of the nation’s capital cities, including Perth.

The study found that the cost of greenfield residential property to the purchaser in Perth (Wellard) in 2010 was $417,187 and an infill residential property (East Perth) amounted to $608,548. Figures 4 & 5

26 National Housing Supply Council (2013) ‘Housing Supply and Affordability Issues 2012–13’ WALGA State Council Meeting 4 September 2013 Page 162

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provide a breakdown of the development aspects which contribute to the purchase price. Full details of these dwelling costs are set out in Appendix 1.

Figure 4: Greenfield Dwelling Costs Australia, 2010 (Source: NHSC National Dwelling Cost Study)

Figure 5: Infill Dwelling Costs Australia, 2010 (Source: NHSC National Dwelling Cost Study)

The study revealed that construction remains the single largest component of both infill and greenfield development accounting for approximately half of the cost of a price of a dwelling in Perth and across Australia.

In Perth, ‘Government Taxes and Charges’ are second largest factor attributing to the cost of developing accounting for 18% of the cost of developing a greenfield dwelling and 14% of an infill dwelling. The study attributed almost two-third of this to GST, a further third to ‘Total Stamp Duty’ and the remainder to infrastructure charges and land tax. These costs were closely followed by ‘developers profit’, ‘the cost of

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land’, and ‘development and interests costs’ which each account for approximately 10% of dwelling construction costs.

In accordance with its findings, the study noted that as the largest cost component of dwellings, construction costs are “a key area to focus reform to improve housing affordability” 27. In addition the study found that construction costs for medium and high rise infill dwellings are in the order of 50% higher than for greenfield dwellings that are of a larger size. Therefore these costs are a significant barrier to providing affordable, inner city dwellings.

Whilst less significant that construction costs, government taxes and charges account for a sizeable development cost. The study recommended that consideration should be given to eliminating either GST liability or stamp duty on new dwellings. Furthermore, the principle of ‘user pays’ underpinning infrastructure charges was detrimental housing affordability.

The study noted that land supply is an important factor of end housing prices, accounting for 9% of greenfield and 12% of infill development costs and the locations in where there is a shortage of supply (Sydney) there is a greater affordability imbalance. Nevertheless, the study remarked that simply increasing the land supply was not the answer to increasing affordability as this land did not always reach its intended market. In addition, ‘rezoned’ land often requires significant infrastructure adding to the cost of development.

Table 3: Typical construction costs for a large subdivision of 500 lots (2007) Item Cost Proportion Land purchase $35,000,000 26.5% Land transaction costs $2,170,170 1.6% Authority fees & contributions $970,766 0.7% Land holding costs $6,158,041 4.7% Construction costs $30,047,147 22.7% Selling costs $9,046,165 6.8% Fees and charges $16,409,666 12.4% Interest $10,167,578 7.7% GST paid $5,167,669 3.9% Net profit $16,848,243 12.7% TOTAL $132,373,301 Source: Community Development & Justice Standing Committee (2011)

It important to acknowledge that NHSC evidence conflicts with that put forward to the Community Development & Justice Standing Committee by the Urban Development Institute of Australia (UDIA). UDIA believe that land purchase costs account for 26.5% of the cost of constructing a 500 lot subdivision and that the median price of housing lot has increased by over 200% from 2002/3 to 2011/12 (see Table 4, below). Furthermore the Housing Industry Association (HIA) also submitted contradicting evidence to the Committee stating that of the total house package, land represents 55% of the total cost.28

27 National Housing Supply Council (2012) National Dwelling Cost Study 28 Community Development & Justice Standing Committee (2011) A Fading Dream, Affordable Housing In Western Australia WALGA State Council Meeting 4 September 2013 Page 164

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Despite this contradictory evidence, it is clear that despite the plentiful supply of land in Perth, land price is a significant factor in the cost of housing and therefore opportunities to reduce this impact should be sought.

Nevertheless, it remains apparent that construction costs are the single biggest contributing factor towards housing cost. Indeed, there is strong evidence to suggest that the cost of construction is itself increasing the cost of land with developers preferring to construct low density housing development in order to minimise the construction cost. Yet there is very little evidence to suggest that construction design and innovation is sought by development industry in response to declining affordability of homes. The majority of those companies within the housing industry responding to affordability, most commonly do so through reducing dwelling and lot sizes, changing dwelling product and sourcing cheaper or more efficient materials that reduce time (and therefore costs) on site. The bulk of any change that has happened in the building process involves a modification or refining of traditional construction techniques rather wholesale change.29

 2.5 Land Supply in Western Australia

In considering land supply, it is important to recognise the various roles that the stakeholders play in the land deliver process. Across Australia, state governments control the direction of development and its sequencing, through the designation of future areas for greenfield development. Furthermore governments also control the zoning of land and other regulatory planning tools to manage development. However the land development industry determines the amount of land released onto the market, its timing, lot sizes, subdivision design, and housing type. “Developers thus exercise primary control of the actual development process and councils generally act as the approvals authority.”30

In WA, the State Government’s, Community Development and Justice Standing Committee were presented with a range of evidence from different witnesses in order to ascertain whether the State is experiencing a shortage of land supply, particularly in the metropolitan area. The Urban Development Institute of Australia (UDIA) suggested that any shortage of land was caused as a result of significant delays in the planning approval and rezoning process. The UDIA continue to maintain this position with the 2013 UDIA State of the Land Report contending that problems with securing finance and infrastructure provision, delays in planning policy, strategies and plans are barriers to supply.

Despite these arguments the Committee found that “undeveloped land in Western Australia is relatively plentiful [and] 25,000 subdivided and undeveloped lots are being withheld from the market in the Perth region by developers.” On this basis, the Committee recommended that “the State Government investigate the feasibility of requiring developers to release developed lots within a specific timeframe, such as a differential land tax regime on long-term unimproved land31.” Indeed, the UDIA itself recently contended that the development “industry is providing lots for immediate demand rather than adding to stock numbers”.32

29 National Housing Supply Council (2013) Housing Supply and Affordability Issues 2012–13 30 Goodman, R, et al (2010) ‘Planning reform, land release and the supply of housing’. AHURI Positioning Paper No. 126 31 Community Development & Justice Standing Committee (2011) A Fading Dream, Affordable Housing In Western Australia 32 Urban Development Institute of Australia, (2013) ‘2013 State of the Land Report’ WALGA State Council Meeting 4 September 2013 Page 165

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The latest land availability figures published by the Western Australian Planning Commission (WAPC) reveal that at 31 December 2011, the total stock of urban and urban deferred land in the three region schemes was 110,610 hectares, of which 29,020 hectares (26 per cent) was non-urbanised. If all of the remaining non-urbanised urban and urban deferred land was to be consumed (without addition), as per the trends of the past 20 years, this stock would not be fully depleted until about 2038. If the principles and targets of Directions 2031 and Beyond are applied, then this stock would support a population of 3.62 million and last until 206333.

Nevertheless, despite the availability of land, it is evident that the price of land within the Perth Metropolitan Region has significantly increased in the last years whilst the number of lots ‘produced’ has fallen. The latest available figures published by the WAPC reveal that “during the September 2012 quarter applications lodged for proposed residential lots dropped by four per cent to 565 applications”.34

Table 4 Perth and Peel Lot Production Period Lots Median Median Approved Lot Size Price* (Final) (m²) 2002/03 12,959 - $94,500 2003/04 15,077 - $111,500 2004/05 15,356 - $130,000 2005/06 16,303 - $165,000 2006/07 15,178 533 $235,000 2007/08 13,150 511 $243,000 2008/09 9,441 482 $215,000 2009/10 8,421 456 $218,000 2010/11 10,762 445 $222,000 2011/12 9,845 456 $225,000

Source: WAPC State Lot Activity September Quarter 2012 *Source: UDIA The 2013 State of the Land Report Figure 6: Perth and Peel Lot Production & Price

33 WAPC (2012) Urban Growth Monitor Perth Metropolitan, Peel and Greater Bunbury Regions 34 WAPC, (2012) State Lot Activity September Quarter 2012 WALGA State Council Meeting 4 September 2013 Page 166

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2. DELIVERING A RESPONSE

 3.1 International responses

An Australian Housing and Urban Research Institute (AHURI) Study carried out in 2008, found that internationally, planning mechanisms in a number of jurisdictions intersect with broader policy, legislative and financial frameworks to increase the supply of affordable housing. In Ireland and the Netherlands, planning requirements for new residential development areas to include affordable housing are supported by funding for social housing development and acquisition.

The study highlighted the fact that in the United Kingdom, there is a strong national planning emphasis on delivering affordable housing which forms a material consideration in the development assessment process. Here, the availability of national funding for social housing development, although recently reduced, has enabled jurisdictions such as the Greater London Authority to require new developments to meet targets for affordable housing inclusion of around 50 per cent. 35

In the United States, many cities specify planning targets of around 10 to 15% affordable homes for certain developments. These requirements are not directly linked to capital funding, but are usually supported by planning bonuses, (such as Boston’s Comprehensive Permit Act, or ‘anti-snob law’ which offers developers density increases) or concessions (such as reduced fees). In the United States, mandatory inclusionary requirements are also supported by federal and state tax incentives designed to stimulate private investment in housing for lower-income households (such as the Low Income Housing Tax Credit program). Other initiatives driven by Federal and State governments in the United States attempt to reduce the disincentives faced by local governments in providing affordable housing. As property taxes give a significant income stream for local authorities to provide municipal services, including schools and police, lower value housing is associated with greater demand for services but a smaller resource base on which to deliver them. As a result of this distortion, many local authorities actively discourage new housing at higher densities. As such, barrier reduction strategies are used to dismantle these ‘exclusionary approaches’.20

A similar approach has recently been adopted in the United Kingdom. Housing targets are set by Local Governments with the Central Government’s offering a ‘New Home Bonus’, matched council tax raised on each new home for six years in order to incentivise planning approvals. An extra £350 ($530) of per year is paid for each property that is deemed ‘affordable’. Nevertheless, there is strong evidence to suggest that the New Homes Bonus has failed to increase planning approvals.36

As well as incentives focusing on land-use planning, there have been a number of financial approaches. One of the main UK banks, Lloyds TSB launched the ‘Local Lend a Hand’ mortgage scheme. Local Governments work in partnership with the bank to help ‘first buyers’ borrow with a lower deposit than is usually needed. In summary, the Local Government acts as a guarantor whilst earning interest on their investment, an arrangement benefiting both parties. To date 53 schemes have been launched with 47

35 Gurran et al (2008) ‘New directions in planning for affordable housing: Australian and International Evidence and Implications’. AHURI Final Report No. 120 36 Millar, S (2013) Spending Watchdog finds New Homes Bonus has failed to increase planning approvals. Planning. The Journal of the Royal Town Planning Institute. 9 April 2013 WALGA State Council Meeting 4 September 2013 Page 167

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Local Governments helping more than 1,100 first-time buyers get on the property ladder, kick starting local property chains. Three quarters of councils say the scheme has a demonstrable impact on local areas.37

Furthermore, whilst Australia private sector investment has so far played little role in the provision of social housing, by contrast, in the UK there are some 150 lenders providing finance to not-for-profit housing associations. These investors are often large financial institutions that are comfortable in lending to housing associations because of the robust financial regulatory structure put in place by the UK Government. This investment has occurred despite the progressive decline in the proportion of the housing stock owned and managed by local government and funded by central government.38

It is also worth noting in Singapore, house buyers can withdraw their compulsory tax-exempt savings held in their Central Provident Fund (CPF), the Singaporean superannuation equivalent, to make a down payment, pay stamp duties and debt service for housing. Furthermore, the state provides concessionary loans to qualifying households for the purchase of housing accommodation. The available loan-to-value ratio could reach 90%, depending upon economic conditions.39

 3.2 National responses

Australia’s Commonwealth Government has limited involvement in land use planning and as aside from the distribution of funds under the Commonwealth State Housing Agreement (CSHA), historically has had no formal or ongoing involvement in affordable housing and planning. The Australian separation of housing and planning policy contrasts with other nations such as the United Kingdom, Netherlands and even many parts of the United States, all of which have maintained housing assistance as a key emphasis in developing and implementing urban planning policy.40

Nevertheless, despite having no direct involvement in planning, the Commonwealth Government has become progressively involved in seeking to increase the supply of affordable homes. Recently the Commonwealth and State Governments jointly funded the National Rental Affordability Scheme (NRAS), an initiative which aims to help alleviate the property rental crisis facing Australia. The scheme, aims to deliver 50,000 new dwellings across Australia available for rent to low and moderate income individuals and families.

Through the NRAS scheme, a tax free incentive of $9,981 per year (as at May 2012 & indexed to grow with CPI) is available each year over a period of 10 years to investors buying a NRAS property. In return, investors must enter into a NRAS agreement, offering discounted rents to eligible tenants. In order to receive the yearly incentive, the discounted rent offered must be at least 20% less than the market rent for the area and the tenants must meet income eligibility criteria.

37 Page, M (2011) ‘How to run a successful local first-time buyer mortgage scheme’ The Guardian, viewed on 1 May 2013 www.guardian.co.uk/housing-network/2013/apr/25/how-to-run-a-local-mortgage-scheme?CMP= 38 Berry, M et al (2006) ‘Financing Affordable Housing: A Critical Comparative Review of the United Kingdom & Australia’, AHURI Final Report No. 72 39 Kim, L S (2011) ‘The Impact of Land Supply and Public Housing Provision on the Private Housing Market in Singapore’ Institute of Real Estate Studies Working Paper Series 2011-005 40 Gurran, N, et al, (2008) ‘New directions in planning for affordable housing: Australian and international evidence and implications” AHURI Final Report No. 120 WALGA State Council Meeting 4 September 2013 Page 168

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The National Housing Supply Council was established in 2008 to assist the Australian Government improve housing supply and affordability for home buyers and renters. The Council provides information and data on a range of housing supply and demand issues to support decision making and to improve housing supply and affordability. The Council’s ‘Housing Supply and Affordability Reform’ sets out a number of recommendations for all tiers of government. In particular the Report recommends that jurisdictions should seek to improve the efficiency of the zoning processes and that;

 government land organisations be used to facilitate urban renewal and the provision of infrastructure in specific locations;  there is increased public reporting on land availability and land release timing;  statutory time frames are introduced for amending planning schemes; and  mandated referral timeframes are set out and deemed approved if no response is received.

Likewise, a 2011 study by the Productivity Commission found that the most common causes of delay and extended timeframes in the land supply processes across Australia's five largest cities are associated with rezoning and planning scheme amendment; structure planning; and overcoming community concerns and objections. To overcome these obstacles the Commission suggested implementing statutory timeframes for rezoning and structure planning; and using government land organisations as the first developer into new settlement areas. This would provide precedent planning decisions on which other developers could base their due diligence and ensure major ‘lead in’ infrastructure was in place. This would also help to overcome other issues such as contaminated soil and fragmented land holdings, where the risks associated with such sites are too great to attract private sector interest.41

COAG’s ‘Housing Supply and Affordability Reform’ (HSAR) recommended amendments to strata titling arrangements which it considered were significantly impeding the redevelopment of buildings that are at or reaching the end of their physical life or economic usefulness as they do not promote the highest and best value land use. Furthermore, this inflexibility was limiting opportunities for infill development.

The HSAR recommended a number of actions for the States to undertake including,

 Improve the efficiency (including the timeframes involved) of referral, development assessment and rezoning process;  Work towards greater use of code-based frameworks for assessing residential development applications;  Agree to principles for infrastructure charges to make them more efficient, transparent and accountable, predictable and equitable;  Consider reforms where strata titling arrangements are currently significantly impeding redevelopment;  Continue to share information about how target regimes, particularly dynamic land targets, are currently being applied in relation to housing supply and land release;  Ensure that planning policy settings regarding diversity in lot size and dwelling mix do not constrain the operation of the housing market (however targeted interventions may sometimes be required to support equity outcomes and promote innovation);  Identify underutilised government land that could be used for housing;

41 Productivity Commission (2011), ‘Performance Benchmarking of Australian Business Regulation: Planning, Zoning and Development Assessments’ WALGA State Council Meeting 4 September 2013 Page 169

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 3.3 State responses

In South Australia, the inclusion of affordable housing provisions in the Development Act 1993 provides the legislative support necessary for local strategic plans and development plans to make explicit provisions for the affordable housing targets set out in the Housing Plan for South Australia and the South Australian Planning Strategy. The South Australian Affordable Housing Trust is responsible for certifying whether projects meet affordable housing targets against specifications which annually adjusted. Affordable housing must be offered below certain price points, offer for sale to eligible buyers and be subject to a legally binding agreement to satisfy these requirements. The Planning Strategy for Metropolitan Adelaide encourages Local Government to promote voluntary affordable housing development through the use of planning concessions to meet a 15 per cent affordable housing target.42

In Western Australia, the Treasury Report, ‘Reducing the Burden – Report of the Red Tape Reduction Group’ made similar recommendations to those of the HSAR and Productivity Commission in noting that amendments to the Residential Design Code (R-Codes) were needed. The report highlighted that the City of Fremantle estimated that 80 per cent of residential areas could be governed by the R-Codes, potentially significantly reducing the number of applications requiring planning approval, speeding the development approval process and strain on local governments. However, the Shire of Broome were concerned that the R-Codes were designed purely for Perth, containing provisions which were not suitable for elsewhere, such as stormwater management and the positioning of outdoor areas43. Nevertheless whilst there is certainly room for improvement concerning the provision of affordable homes, the current R-Codes do contain the provision (6.1.3 A3(i)) for allowing a one-third reduction in the minimum site area required for a single dwelling or an aged or dependent person.44

The Department of Housing’s ‘Affordable Housing Strategy 2010-2020, Opening Doors to Affordable Housing’ was released in 2010 and set out a number of measures designed to provide at least 20,000 affordable homes by 2020. The key issues raised by the Strategy which are relevant to the Local Government sector are, as follows;

 Local Governments are expected to produce housing strategies which identify current and future housing needs;  A best practice model for housing approvals will be developed, (although it remains unclear when this guidance will be published); and  The Strategy encourages planning reforms to promote greater diversity in the choice of housing options available.45 In conjunction with the Strategy, the Department of Housing intends to publish area specific housing supply and affordability data, enabling Local Governments to develop housing strategies which reflect local housing demand. However, given that this information is still to come forward, Local Governments will have to find alternative data sources as an evidence base in developing their housing strategies, such as the ‘WA Tomorrow’ population forecasts issued by the WAPC. The Strategy also contends that ‘model

42 Gurran, N, et al, (2008) ‘New directions in planning for affordable housing: Australian and international evidence and implications” AHURI Final Report No. 120 43 Department of Treasury Western Australia, Red Tape Reduction Group (2009) ‘Reducing the Burden – Report of the Red Tape Reduction Group’ 44 Western Australian Planning Commission (2010) State Planning Policy 3.1 Residential Design Codes 45 The Department of Housing (2010) Opening Doors to Affordable Housing, Affordable Housing Strategy 2010-2020

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planning policies’ regarding the provision of affordable housing together with a best practice model for housing approvals will be developed, however no timeframe is provided in relation to the release of this information.

Whilst the Strategy does not support formal inclusionary zoning which sets out a mandatory affordable housing quota, it does place a minimum 15% affordable housing quota on all government land. For non- government sites, the Strategy states that Local Governments are encouraged to offer developers, voluntary incentives to include wider affordable housing components.

 3.4 Local responses

In considering affordable housing, it is also useful to consider regeneration option and therefore to examine joint study prepared for WALGA, Local Government and the Department of Planning, ‘Achieving Best Practice in Urban Regeneration’. The study uncovered a number of useful findings including; that effective urban regeneration often requires direct involvement by Local Government. This was considered necessary because only Local Government has the long-term community focus required to achieve the non-commercial outcomes required. The study highlighted that beyond its traditional role as a planning authority, measures that might be taken by Local Governments to achieve regeneration objectives and according affordable housing projects could include:

 directly undertaking of selected development projects, especially those of a form that is not attractive to the private sector;  joint ventures with private owners to mitigate the development risk;  underwriting of specific aspects of development projects where the private sector is unable or unwilling to carry the risks involved; and  consolidation of sites to enable development at a suitable scale to achieve the desired density or land use outcomes. However, the involvement of Local Government in property ownership and/or development raises a number of issues regarding public perception and the relationship with the community. These include, but are not limited to:

 actual or perceived conflicts of interest between Council's role as a planning authority and as a commercial property owner or developer;  potential conflicts between political or social priorities of Council and its commercial activities;  conflict between the need for commercial confidentiality returns and the responsibility for transparency and accountability to the residents and ratepayers;  the management of financial risk when public or community assets are involved; and  situations in which may place a Council in (real or perceived) conflict with its constituents as a result of dealing with decisions necessarily required as a consequence of involvement of commercial activities. The study suggested that the creation of Council-owned arm’s length development companies as possible solution to resolving many of the issues associated with development by Local Government. In many other jurisdictions such an approach would be regarded as a normal and proper response. Indeed, in New Zealand it is common practice for Local Government to place their commercial activities in wholly-owned corporate subsidiaries controlled by external Boards. However, Local Government in Western Australia is

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specifically barred from doing so by Section 3.60 of the Local Government Act 1995 unless permitted to do so by regulation. Currently there is no provision in the regulations for this to happen (and no plans to do so).

Most of the responses adopted by Local Governments in Western Australia have focused upon promoting affordability indirectly by increasingly the supply of smaller homes. For example the City of Swan is currently proposing an amendment to the local planning scheme, to offer developers a density bonus provided certain design criteria are met, together with the inclusion of single bedroom or special needs homes into new developments. Likewise the City of Vincent already offers a 50% density bonus for single bedroom dwellings through a 33% reduction in the minimum site requirements for a single dwelling (as permitted by a clause 6.1.3 A3(i) of the R-Codes)46 whilst similar approaches have also been adopted by others including the City of Belmont and City of Fremantle.

Nevertheless, some Local Governments have taken a more innovative approach to promoting affordable housing. For example, in response to a shortage of accommodation and affordability issues, the Town of Port Headland is currently proposing to enter into a ‘major land transaction’ with a developer. The proposal will see the Town exchange an area of land in return for eight dwellings to provide staff accommodation. This proposal will enable the Council to offer accommodation to it staff and by increasing the local housing stock will indirectly increase the affordability of accommodation in the Town. The proposal seeks to satisfy the objectives of The Town’s, Staff Housing Strategy and a business plan has been prepared in accordance with the requirements of the Local Government Act. In short, there is no cash component to the transaction; The Town will gift the land to the developer in return for eight dwellings, whilst the developer is granted the right to market and retain the proceeds received from the additional 10 residential lots contained on site.

Last year, the City of Fremantle, amended its local planning scheme in order to increase the supply of affordable homes in the City. The scheme amendment relates to a series of sites within the eastern quarter of the City’s CBD. The amendment contains the provision to provide 15% affordable housing where a development has a net let-able area greater than 1000m². In addition, the amendment contains the provision to require that a minimum of 25% of dwellings within a 10 or more multiple dwelling development must have a maximum floor area of 60m² and no more than 40% must have a total area of 120m².

City of Fremantle, Local Planning Scheme No.4, Amendment 49:

6. Amending clause 5.4—Residential Development, as follows:

Adding a new clause 5.4.5 to read— In development comprising of ten or more Multiple Dwellings, a minimum of 25 per cent of the total number of dwellings must have a maximum floor area of 60 square metres or less and no more than 40 per cent of the total number of dwellings may have a floor area of 120 square metres or more.

The City of Perth published their Affordable Housing: Mapping and Incentives Project in 2008, with the intention of highlighting opportunities and barriers to affordable housing to inform potential Council strategies and incentives. The study found that in Perth, affordable housing is being lost through redevelopment and gentrification at a rate which exceeds the growth in need for housing among those on low to medium incomes.

46 City of Vincent (2008) Planning and Building Policy Manual Residential Development Policy No: 3.4.7 WALGA State Council Meeting 4 September 2013 Page 172

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The study observed that the lack of support for affordable housing through the legislative framework together with the low level of Local Government planning autonomy in Western Australia may be a reason for the limited use of mechanisms to increase the provision of, or prevent the loss of affordable housing by Local Governments.

To increase the supply of affordable homes, the study proposed revisions to the City Planning Scheme advocating a dual approach. This approach includes offering incentive-based mechanisms such as ‘density’ and ‘plot ratio’ bonuses as well as mandatory requirements for a maximum floor space component within multi-unit housing developments. The study also recommended that the Council play a more direct role, using its own land and/or resources to create affordable housing. The study identified a number of sites where it would be appropriate to meet this provision and sets out a number of objectives for the development of these sites to achieve. Accordingly, the City of Perth is currently undertaking one such development at Goderich Street, East Perth. The development includes a total of 48 units and is available to those who have a job within the City, do not own or part own property and meet income limits set by the Commonwealth Government’s National Rental Affordability Scheme. Residents will pay 80% of the market rent for the property, as determined by an independent valuer. A $1.6 million grant towards construction costs was provided by the Department of Housing and the accommodation will be managed by Access Housing Australia Ltd.

By comparison, State and Local Governments in New South Wales have a relatively long history of addressing affordable housing through planning legislation and policy. Here much of the focus has been on protecting existing sources of low cost housing, especially in metropolitan areas. However, other approaches similar to that undertaken by Fremantle have also been adopted. Clarence Valley Council has an affordable housing policy which requires the provision of ‘one affordable housing unit in each ten units developed’. The provision applies to all developments of ten or more dwellings and subdivisions of ten or more lots and/or to land that has a capacity to be subdivided into ten or more lots. The policy is based on the size of each dwelling and its design (the number of the bathrooms and car parking spaces).

Housing Type Criteria Number of units/dwellings 1 bedroom flat 50-55m² 1 2 bedroom flat 75-80m² 1 3 bedroom flat 95-100m² 1 2 bedroom detached dwelling 95-100m² 1 3 bedroom detached dwelling 120-125m² 1 Contribution of land to Council 400m² 1 Source: Clarence Valley Council (2010) Affordable Housing Policy

The City of Canada Bay Council in western Sydney adopted a policy seeking the provision of dedicated affordable housing from major redevelopment schemes, through negotiated planning agreements. The policy sets out the requirement for large residential developments to offer a number of units to Council as ‘affordable housing’ or for other public benefits, using a planning agreement, either at the stage of a rezoning or in the processing of a development application. The policy specified a contribution in the order of 25 per cent of any floor space which may be considered as a ‘bonus’ floor space ratio – that is, increased density for the site. To date, the policy has delivered 15 affordable housing units (from a single project), dedicated to the Council, of which six have been made available to local hospital staff who meet

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specific income eligibility criteria. The affordable homes are owned by the Council with the maintenance contracted to a Community Housing Association. 47

Adelaide City Council offers an interesting example of an alternative model for securing affordable housing. The City purchased the Adelaide Balfours / Bus Station site in order to directly manage redevelopment of the site with the provision of affordable housing at the heart of the redevelopment. The City Council offered the sale of the site through a competitive tendering process on the basis that redevelopment secured various regeneration objectives including 15% affordable units. The development includes 52 affordable housing units, of which 39 were purchased by State government and 13 retained by Council. 48

 3.5 WALGA State Council Resolutions/Commitments

There have been very few WALGA State Council resolutions in relation to affordable housing. In 2012 State Council noted that the Minister for Housing was creating a Ministerial Roundtable to discuss opportunities for providing solutions to affordable housing issues, inviting a range of stakeholders including WALGA’s President.

In 2006 State Council endorsed WALGA’s submission in relation to the then emerging Housing Strategy WA. The submission made a number of recommendations including that;

 Meeting the housing challenge in Western Australia will require active intervention by the State Government in the housing market.  WALGA believes it is critical that the State Government provides ‘homes’ rather than simply ‘houses’. WALGA actively supports the principle that social and affordable housing should be distributed and integrated into every community. Local Government is well placed to assist in responding to these particular challenges.  The establishment of a State Government/Local Government Committee through WALGA would assist in the further development of the Housing Strategy and ensure its effective implementation.  WALGA is strongly supportive of the intention to develop Regional Housing Strategies. In support, the State needs to establish a logical ‘macro’ policy framework, whilst Regional Housing Strategies should be developed with groups of Local Governments in partnership with State Government.  Affordable Housing should be addressed as an integral component of Regional Housing Strategies.  The effective delivery of housing diversity will require a considerable strengthening of current planning provisions.49

47 Gurran, N, et al, (2008) ‘New directions in planning for affordable housing: Australian and international evidence and implications” AHURI Final Report No. 120 48 Gurran, N, et al, (2008) ‘New directions in planning for affordable housing: Australian and international evidence and implications” AHURI Final Report No. 120 49 WALGA State Council Item 3.4 June 2006, ‘Response to Housing Strategy WA’ WALGA State Council Meeting 4 September 2013 Page 174

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3. OPPORUNTIES FOR LOCAL GOVERNMENT TO RESPOND

 4.1 Land use planning mechanisms for affordable homes

As highlighted in earlier in section 3, land use planning responses designed to help increase the supply of affordable homes and housing diversity have been adopted by the eastern states and in a number of countries. In analysing these planning responses, an AHURI study grouped thee responses into five key ‘strategic objectives’; increasing housing supply; reducing barriers to affordable housing development; preserving the loss of low-cost housing options; encouraging new affordable housing; and securing new dedicated affordable housing.50 These objectives together with an approach and mechanism for achieving these objectives are outlined in Table 5 below.

Table 5, Land Use Planning Approaches/Mechanisms for Affordable Homes

Strategic Objective Approach / mechanism

 Audit of potential residential land Increase housing  Government dedication/acquisition of land supply  Land development or renewal authority  Land development incentives/penalties  Audit existing planning controls; assess impact of proposed regulations on housing affordability Reduce barriers to  Development controls permit diverse housing, in as many areas as affordable housing possible development  Faster approvals for preferred development  Overcome local barriers to affordable housing construction Preserving and  Social impact framework offsetting the loss of  Preserving particular house types at risk low-cost housing  Assistance for displaced residents  Graduated planning standards relating to building use and context (e.g. boarding houses near transport require less parking). Encouraging new  Planning bonuses/concessions on development standards for designated affordable housing affordable housing creation or contribution  Fast track approvals for affordable housing meeting defined criteria  Fee discounts for affordable housing meeting defined criteria  Voluntary negotiated agreements for affordable housing contribution  Inclusionary zoning – mandatory contributions for all identified Securing new development in the zone to contribute to affordable housing fund/supply dedicated  Mixed tenure requirements – proportion of development in new release affordable housing areas must be affordable

 Impact fees – mandatory contribution to offset impact of development on affordable housing needs Source: AHURI Research & Policy Bulletin: 105

50 Gurran, N, et al, (2008) ‘New directions in planning for affordable housing: Australian and international evidence and implications” AHURI Final Report No. 120 WALGA State Council Meeting 4 September 2013 Page 175

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The AHURI study noted that the planning mechanisms adopted must be matched to the local housing market conditions. For example, mechanisms to protect the existing supply of affordable homes are only effective in areas of high growth and rising house prices. It is also important that the mechanisms do not conflict with each other. For example, seeking to protect existing low cost housing options may prevent redevelopment opportunities which increase density and therefore the overall supply of homes.51

In progressing the findings of the AHURI study, the NSW Government’s Centre for Affordable Housing offers some useful advice and examples of when appropriate planning mechanisms can be used to help protect existing, and to promote new affordable housing stocks.

Planning Approach Local context Example objective LEP / DCP contain specific objectives to Metropolitan & high growth retain existing sources of affordable coastal communities housing A. Requirement for social impact Metropolitan and high growth Hastings Council Protecting existing assessment / impact mitigation coastal communities sources of strategies to accompany development affordable and proposals that may impact on the appropriate availability of affordable housing or housing housing for special needs groups Specific controls to protect particular Metropolitan and high growth Waverley Council, types of stock from redevelopment coastal communities Gosford Council LEP / DCP contain specific objectives to All Marrickville Council, promote affordable housing Randwick Council Facilitate supply of residential land by Metropolitan & high growth identifying potential new housing communities (subject to opportunities and rezoning to permit environmental constraints) residential development or development at a higher density Ensure zones / development controls All sufficiently flexible to permit affordable Marrickville Council B. and diverse housing types Promoting housing diversity Explicitly permit the conversion / All adaptation of existing housing for and affordability Parramatta Council dependent family members or for seniors’ “co-housing” Requirements for diverse housing forms All Leichhardt Council (such as smaller and larger dwellings, (drop down box) Blue adaptable or accessible dwellings, and Mountains Council dwellings appropriate for seniors) Planning incentives for diverse housing High value inner metropolitan Waverley Council types such as shop top housing suburbs

C. Planning incentives to generate Very high value inner Waverley Council Producing contributions for new housing stock metropolitan suburbs and high

51 Gurran, N, et al, (2008) ‘New directions in planning for affordable housing: Australian and international evidence and implications” AHURI Final Report No. 120 WALGA State Council Meeting 4 September 2013 Page 176

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Planning Approach Local context Example objective affordable growth coastal communities housing Mandatory requirements for developers Very high value inner Willoughby Council to contribute to affordable housing metropolitan suburbs and high growth coastal communities Planning agreements Redevelopment and greenfield areas Signal intention to seek affordable High value inner metropolitan housing contributions when land is areas, outer metropolitan Willoughby Council rezoned. growth areas, high growth coastal communities Source: NSW Centre for Affordable Housing 52

Despite the success of mandatory affordable housing quotas elsewhere in Australia and internationally, it is important to recognise that such requirements are not supported by the Department of Housing’s Affordable Housing Strategy. Instead the Strategy encourages Local Governments to offer developers voluntary incentives to include wider affordable housing components. Because of the context within in which Local Government must operate, careful consideration will need to be given to application of mandatory affordable housing provisions. However, given the success of mandatory provisions, the application of such provisions in areas identified by Local Governments as suitable for high density development, which are well served by public transport, would be effective. In these locations, the cost of providing affordable homes can be readily offset by the increased density allowance and reduced requirements for car parking and other developer contributions such as open space. As such the economic viability of these schemes would not be compromised.

The application of local planning scheme and policy provisions which encourage the development of smaller homes have also proven to be effective in helping to deliver a wider variety in the housing stock. However, it is important to recognise that such provisions do not directly lead to more affordable housing; rather such provisions simply increase the supply of low cost housing.

Finally it is also important to recognise that some planning provisions which seek to satisfy other planning objectives, may add to the cost of providing housing. As COAG’s ‘Housing Land and Affordability Reform Report’ noted, some Local Governments impose planning restrictions that restricts the commercial viability of some new housing developments which has implications for house prices. The study gave an example minimum car parking provisions, particularly in multi-unit developments which may add excessively to costs of homes; however it should be noted that the multi-unit housing code in the WA R- Codes has reduced car parking requirements. Nevertheless, there remains no guarantee that the full development cost savings brought about by reduction in development requirements will be passed directly onto the occupant of the dwelling, as house prices are largely determined by market forces.

52 NSW Centre for Affordable Housing Planning Mechanism for Affordable housing www.housing.nsw.gov.au/Centre+For+Affordable+Housing/NSW+Local+Government+Housing+Kit/Planning+Mechanisms+for+Affordable +Housing/# Viewed on 17 April 2013 WALGA State Council Meeting 4 September 2013 Page 177

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 4.2 Local Government land release & land holdings partnerships

A number of Local Governments in Western Australia are either in the process of undertaking, or considering undertaking projects which will release some of their land holdings to provide housing, such as the Town of Port Hedland’s ‘major land transaction’ as highlighted in section 3.2.

The City of Perth, Key Worker Housing Development at Goderich Street, East Perth will provide 48 apartments available for rent for people who; work in the City of Perth, do not have assets exceeding a set limit, do not own (part of) another property and do not earn more than a identified household income limit. Residents of the scheme will be charged 80% the market rent and with residents able to remain in the accommodation for up to three years or until their income reaches the upper threshold limit. This is designed to support the ‘transitional’ nature of the development and ensure its benefit is spread amongst a range of people.

The scheme is located on council land and also includes the development of a new 177-bay public car park. The project is jointly funded by the City, the State Government, the National Rental Affordability Scheme and the Disability Services Commission and will be managed by a not for profit housing company.

Following an investigation by the Shire of Capel to identify opportunities for providing additional seniors housing in both Capel and Boyanup, the Shire entered into a partnership with a not for profit housing provider to develop affordable homes for seniors.

The scheme involved the replacement of four existing senior’s dwellings with 17 new units with priority access offered to Capel residents. As the land is ‘Crown Land’ the villas cannot be sold off, therefore this project will provide for permanent affordable homes for the rental sector. Funding for the project was secured through a $1.9 million allocation from the Royalties for Regions program. Rent for these villas will be based on income and capped at 80% of market rent.

As with the City of Perth Scheme, Capel’s affordable senior’s housing project demonstrates of how Local Governments can make maxim use of their land holdings to boost affordable housing opportunities. Nevertheless, in adopting such approaches, it is important that Local Governments take into account a number of important considerations. Firstly, the location of affordable is critical. Both the Capel and Perth schemes are well located. A well located site is one that is well served by public transport and provides good access to services and facilities. This is particularly important for residents with limited resources and/or mobility. These sites are often located in areas where the land is more expensive, however these costs can be offset by increasing the density of development which has the additional benefit of increasing the availability of services to a wider range of people.

The design of affordable housing is also important. The Shire of Capel invested significant resources and employed architectural expertise to ensure that the scheme was well designed and achieved a 5 star energy rating. However carefully considered design need not add to the development costs and through maximising passive solar gain, cooling, ventilation and natural light design can be used to minimise running and maintenance costs. Furthermore, development that is well integrated into the surrounding streetscape and neighbourhoods is less likely to attached stigma and tenants more likely to express a sense of pride in their home.53

53 Wiesel, I et al (2013) ‘What influences the outcomes of affordable housing projects?’, AHURI Final Report No. 158 WALGA State Council Meeting 4 September 2013 Page 178

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If reallocating land, Local Governments will also need to consider whether the provision of affordable housing is the most appropriate use of the land. A recent study undertaken on the behalf of the Department of Sport and Recreation found that in the newer, outer suburbs of Perth there is a shortage of active open space, caused largely as a result of new planning policies promoting Water Sensitive Urban Design and Bush Forever54. Alternatively, the location of potential development sites may be such that it would be more effective to capture the value of their redevelopment and redirect that investment into affordable housing sites located elsewhere.

Guidance for evaluating whether or not a land holding is suitable for affordable housing set out in Appendix 2.

The success of the Perth and Capel scheme’s highlights how effective partnerships between Local Governments and a range of agencies, particularly the not for profit sector, can be in developing affordable homes.

Such partnerships may include, informal cooperative working arrangements, or be developed more formally through memoranda of understanding or evolve into contractual relationships to deliver locally defined affordable housing outcomes.

Partnerships between local governments and community providers have not been used as extensively or been as successful as possible. This has often due to a lack of understanding with some Local Governments treating affordable housing developers similarly to market housing developers, requiring developer contributions, which is often not possible given that community providers are not-for-profit organisations. However there are many benefits to partnering with the not for profit sector. The community housing sector is targeted for both Federal and State funding and because of their charity status, in managing a housing development, a community housing provider receives tax breaks including an exemption from GST, which can save 10% on construction costs. 55

Community housing providers can also service locally defined housing needs, such as the eligible residents of a particular Local Government. Furthermore such provides can combine resources (sites and funds) and leverage private investors.

 4.3 Other possible options

As Buxton and Scheurer (2007) argue, a critical factor in land price and therefore housing affordability, is not the amount of land available for development; but rather the rate at which land is released onto the market, with this rate determined by a limited number of seven or eight major development companies.56

In the context that within the Perth metropolitan area there is a plentiful supply of housing land, measures that encourage the release of this land more readily to reduce the land price should be considered. One such mechanism available to Local Governments for encouraging the release of housing land could be to levy higher rates for vacant land. Indeed this notion is itself recognised by the property

54 Centre for Sport and Recreation Research (2013) ‘Emerging Constraints for Public Open Space in Perth Metropolitan Suburbs’ 55 Shelter WA (2012) ‘Local Government Guide to Developing an Affordable Housing Strategy’ 56 Buxton, M. and Scheurer, J. (2007), ‘Density and Outer Urban Development in Melbourne’, Urban Policy and Research, Vol 25, No 1, pp.91–111 WALGA State Council Meeting 4 September 2013 Page 179

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industry, who concede that a land tax for zoned land may encourage developers to turn over such land holdings more quickly. The potential for price competition is increased the more that land is forced onto the market within a particular area. Nevertheless, there may be other factors preventing the release of land. Within Perth it has been argued that the slow release of land was largely caused by a skills shortage in planning and construction industries rather than reluctance to release land to the market. On this basis a more holistic view of the housing land release and construction process is needed to ensure a smooth release of land.57

This practice is currently applied by the City of Perth, who levy a rate of 3.898 cents per dollar of Gross Rental Value (GRV) on residential land, whilst 5.130 cents per dollar of GRV is applied to all vacant lands. The City contends that “the higher rate is imposed to discourage holding undeveloped land within the City which reduce the amenity of the area and to encourage its early development.” 58

 4.4 Checklist for designing and delivering affordable housing projects

When considering initiating or partnering in an affordable housing project, it is important that Local Governments take the following considerations into account:

A. Who are the target groups for whom the housing is intended? Depending upon the needs of the local community, an affordable housing project could be designed for a designated special needs group, specific workers important to the local economy and/or community, for low income households in general or for a mixture of income groups.

B. Who are the partners who could be engaged? Depending on their design and target group, affordable housing projects can attract a range of partners. Consultation with possible partners should be sought from the outset which may include local employers, members of the housing industry, not for profit housing providers and other organisations.

C. Which affordable housing product will be offered? Typical affordable housing projects provide rental housing, shared equity or discounted home purchase. Affordable housing should of good quality, incorporate sustainable design features, be indistinguishable from other housing and should be dispersed throughout the local community.

D. How will rents be set for rental housing? There are several options for determining affordable rents, they can be related to the income of the tenant, to the costs of services provided, or set as a discount of local market rents.

E. How will prices be set for home buyers? Setting the price for housing that is to be sold is a complex area where specialist and legal advice may be required. One possible method is to calculate the price the housing as production cost plus a reasonable

57 Zigomanis, A (2013) ‘Land tax would encourage developers to turn over land quicker but with unintended consequences’ Property Observer, viewed on 16 May 2013 www.propertyobserver.com.au/news/land-tax-would- encourage-developers-to-turn-over-land-quicker-but-with-unintended-consequences-angie-zigomanis/2013030659733 58 City of Perth (2013) Rates Information viewed on 16 May 2013 www.cityofperth.wa.gov.au/web/Business/Business- Information/Rates-Information/ WALGA State Council Meeting 4 September 2013 Page 180

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return, rather than the market price. Another option is for a sponsor to sell a share in the dwelling to the resident (say 50% or 75%) and rent paid to the sponsor, and charges for insurance, rates and maintenance will need to be determined. An important consideration in selling housing at a discounted price is to ensure that this does not result in windfall gains when the initial buyer resells the property.

F. What housing will be appropriate? Housing design will need to take into consideration factors that affect both the affordability and suitability of the housing for the user, together with the project’s financial viability. Factors to consider include: the sustainability of the dwelling; what construction efficiencies can be obtained; what facilities should be provided; is a component of adaptable or accessible housing appropriate; and, for rental housing, how can the long term cost of maintenance be controlled?

G. What levers are available to reduce project costs? Affordability will be improved if levers can be packaged together to reduce the costs of the housing provision. Possible levers to consider include planning concessions and bonuses, other concessions such as development taxes and charges as well as design savings, together with discounts that may be available for developing larger sites or volume purchases.

H. How will the project be financed? Affordable housing projects are typically funded by a mixture of debt and equity finance obtained from private and public sources. Local Government resources, such as land and capital and be used to leverage other sources of finance. Possible sources of resources and funding include, State and Federal sources, surplus government land, developer charges, financial institutions and not for profit organisations. Profits generated from other market driven projects can also be used to finance affordable housing elsewhere.

I. What recurrent costs will have to be considered? Where a home is offered for rent, the costs of managing and maintaining the property must be taken into consideration with rental return sufficient to cover management and maintenance costs over throughout the properties lifespan together with the costs of borrowings associated with the property. The impact of strata fees on operating costs, particularly in mixed tenure developments that include luxury items such as swimming pools.

J. How will affordability be secured in longer term? It is important to ensure the continuation of any affordable housing provided. For rental properties this may mean retaining ownership or transferring ownership to a regulated not for profit housing provider. Where housing is sold, ensuring a property’s ‘affordability’ is more difficult and may require a covenant to protect the investment.

Source: Adapted from the NSW Centre for Affordable Housing.

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APPENDIX 1: Perth Housing Construction Costs

Development: Greenfield Region: Wellard Number of Dwellings: 100

Revenue Total Per dwelling Total Sales Revenue 40,233,300 402,333 Less Selling Costs 1,609,333 16,093 Legal Fees 201,167 2,012 Marketing Fees 201,167 2,012 Sales Commission 1,206,999 12,070 Net Sale Proceeds 38,623,967 386,240

Total Revenue (before GST paid) 38,623,967 386,240 Less GST Paid 3,657,573 36,576

Total Revenue (after GST paid) 34,966,394 349,664

Costs Land Purchase Costs 4,222,301 42,223 14.3% Land Purchase 3,838,455 38,385 13.0% GST on Land Purchase 383,846 3,838 1.3% Land Transaction Costs 210,788 2,108 0.7% Stamp Duty 191,595 1,916 0.7% Due Diligence and Legal 17,448 174 0.1% GST on Due Diligence and Legal 1,745 17 0.0% Construction 21,541,400 215,414 73.1% Subdivision Construction Costs 3,818,727 38,187 13.0% GST on Subdivision Construction Costs 381,873 3,819 1.3% House Construction Costs 15,764,364 157,644 53.5% GST on House Construction Costs 1,576,436 15,764 5.3% Professional Fees 1,690,582 16,906 5.7% Subdivision Fee 343,727 3,437 1.2% GST on Subdivision Fee 34,373 344 0.1% Professional Fee 945,818 9,458 3.2% GST on Professional Fee 94,582 946 0.3% Development Manager 272,082 2,721 0.9% Statutory Fees 2,210,310 22,103 7.5% Building License 75,395 754 0.3% Council Application 31,350 314 0.1% Subdivision Fees 3,565 36 0.0% Infrastructure Charges 1,580,000 15,800 5.4% Water and Sewerage Headworks 520,000 5,200 1.8% Land Holding Costs 77,779 778 0.3% Land Tax 41,280 413 0.1% Metropolitan Regional Improvement Tax 8,618 86 0.0% Council Rates 21,205 212 0.1% Water and Sewerage 6,676 67 0.0% Finance Charges 15,007 150 0.1% Loan 1 Application Fee 1,267 13 0.0% Loan 2 Application Fee 13,740 137 0.0% Interest Expense 1,980,820 19,808 6.7% Interest on Loan 1 456,467 4,565 1.5% Interest on Loan 2 1,524,353 15,244 5.2% Total Costs (before GST reclaimed) 31,948,986 319,490 Less GST Reclaimed 2,472,854 24,729

Total Costs (after GST reclaimed) 29,476,132 294,761 Net Development Profit 5,490,262 54,903

Total Cost to End User Dwelling Purchase Price 402,333

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Stamp Duty 13,129 Transfer Fee 225 Professional & Other 1,500 TOTAL COSTS 417,187

Development: Infill Region: East Perth Number of Dwellings: 50

Revenue Total Per dwelling

Total Sales Revenue 29,250,000 585,000

Less Selling Costs 1,170,000 23,400

Legal Fees 146,250 2,925

Marketing Fees 146,250 2,925

Sales Commission 877,500 17,550

Net Sale Proceeds 28,080,000 561,600

Total Revenue (before GST paid) 28,080,000 561,600

Less GST Paid 2,659,091 53,182

Total Revenue (after GST paid) 25,420,909 508,418

Costs

Land Purchase Costs 3,877,940 77,559 17.6% Land Purchase 3,525,400 70,508 16.0% GST on Land Purchase 352,540 7,051 1.6% Land Transaction Costs 204,558 4,091 0.9% Stamp Duty 175,473 3,509 0.8% Due Diligence and Legal 26,441 529 0.1% GST on Due Diligence and Legal 2,644 53 0.0% Construction 16,331,425 326,629 74.2% Construction Costs 14,846,750 296,935 67.4% GST on Subdivision Construction Costs 1,484,675 29,694 6.7% Professional Fees 1,254,321 25,086 5.7% Professional Fee 958,950 19,179 4.4% GST on Professional Fee 95,895 1,918 0.4% Development Manager 199,476 3,990 0.9% Statutory Fees 346,597 6,932 1.6% Council Application 31,350 627 0.1% Building License 51,964 1,039 0.2% Strata Title Application 3,283 66 0.0% Water and Headworks 260,000 5,200 1.2% Land Holding Costs 67,993 1,360 0.3% Land Tax 27,676 553.52 0.1% Council Rates 23,833 476.66 0.1% Water and Sewerage 7,452 149 0.0% MRIT 9,032 181 0.0% Finance Charges 10,163 203 0.0% Loan 1 Application Fee 1,163 23 0.0% Loan 2 Application Fee 9,000 180 0.0% Interest Expense 1,863,689 37,274 8.5% Interest on Loan 1 397,661 7,953 1.8% Interest on Loan 2 1,466,028 29,321 6.7% Total Costs (before GST reclaimed) 23,956,686 479,134

Less GST Reclaimed 1,935,754 38,715

Total Costs (after GST reclaimed) 22,020,932 440,419

Net Development Profit 3,399,977 68,000

Total Cost to End User

Dwelling Purchase Price 585,000

Stamp Duty 21,803

Transfer Fee 245

Professional & Other 1500

TOTAL COSTS 608,548

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APPENDIX 2: Evaluating land holdings: Guidance for decision making

Source: COAG Housing Supply and Affordability Reform WALGA State Council Meeting 4 September 2013 Page 184

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6.3 Strategic Assessment for the Perth Peel Region (05-101-02-0001 MB) By Mark Batty, Executive Manager Environment and Waste

Moved: Mayor H Zelones Seconded: President Cr K Chappell

That State Council note the status of the Strategic Assessment for the Perth Peel Region.

RESOLUTION 260.4/2013 CARRIED UNANIMOUSLY

In Brief

 In July 2011, the Western Australian Ministers for Planning and Environment and the Commonwealth Minister for Sustainability, Environment, Water, Population and Communities agreed to undertake a Strategic Assessment of the Perth and Peel regions of Western Australia.  The Strategic Assessment will assess the impact of the future development proposed under the following state land use planning documents on matters of national environmental significance listed under the Commonwealth Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act): 1. Directions 2031 and Beyond – Regional Planning Framework for Perth and Peel; 2. the Western Australian Planning Commission’s forthcoming sub regional structure plans for the southern metropolitan and Peel, north-west and north east corridors; 3. a revised State Planning Policy – Basic Raw Materials.  Parallel with the Strategic Assessment, strategic advice will be prepared for the Minister for Environment under section 16(e) of the Environmental Protection Act 1986 (WA). The Section 16(e) advice will provide guidance to the Minister for Environment for future decision-making on State environmental matters within the Perth and Peel regions.

Attachment The Intergovernmental Agreement for the Strategic Assessment can be accessed at: http://www.dpc.wa.gov.au/Consultation/StrategicAssessment/Documents/Final%20Agreement%2 0and%20TOR%20for%20website.pdf

More detailed information on the Strategic Assessment process can be found at: http://www.dpc.wa.gov.au/Consultation/StrategicAssessment/Pages/Default.aspx#consultation

The Terms of Reference for the Stakeholder Reference Group can be accessed at: http://www.dpc.wa.gov.au/Consultation/StrategicAssessment/Documents/Strategic_Assessment %20-_SRG_TOR_updated.pdf

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Background

In July 2011, the Western Australian Ministers for Planning and Environment and the Commonwealth Minister for Sustainability, Environment, Water, Population and Communities agreed to undertake a Strategic Assessment of the Perth and Peel regions of Western Australia.

The Strategic Assessment is being led by the Department of the Premier and Cabinet in partnership with the Commonwealth Department of Sustainability, Environment, Water, Population and Communities. At the State level, the Department of Premier and Cabinet is working closely on the Strategic Assessment with the Department of Planning, the Department of Parks and Wildlife and the Office of the Environmental Protection Authority.

The Strategic Assessment will assess the impact of the future development proposed under the following state land use planning documents on matters of national environmental significance listed under the Commonwealth Environment Protection and Biodiversity Conservation Act 1999:

 Directions 2031 and Beyond – Regional Planning Framework for Perth and Peel;  the Western Australian Planning Commission’s forthcoming sub regional structure plans for the southern metropolitan and Peel, north-west and north east; and  a revised State Planning Policy – Basic Raw Materials.

Parallel with the Strategic Assessment, strategic advice will be prepared by the EPA for the Minister for Environment under section 16(e) of the Environmental Protection Act 1986. The Section 16(e) advice will provide guidance to the Minister for future decision-making on State environmental matters within the Perth and Peel regions. Further, the Section 16(e) advice is intended to provide clarity to Government, stakeholders and the community on acceptable outcomes for State environmental matters that are not also covered by the EPBC Act.

The purpose of the Strategic Assessment is to:

 Significantly reduce the need for project by project assessment under the EPBC Act in the Perth and Peel region;  Deliver an effective long term and strategic response to key environmental issues in the Perth and Peel region  Provide greater certainty to industry as to which areas can be developed and what the obligations will be in terms of mitigation, including environmental offsets; and  Provide greater certainty in terms of long term land supply to meet the needs of a city of 3.5 million.

The Strategic Assessment and section 16(e) strategic advice provide the opportunity to avoid, mitigate and offset the impact of future development at a strategic scale and consequently achieve long term environmental and conservation outcomes. It is envisaged that as an outcome of this process a long term and strategic response to MNES and state environmental matters will be implemented.

The Strategic Assessment is being undertaken in the context of the significant growth that is projected for the Perth and Peel regions over the coming decades. Recent projections have estimated that by 2026, the State’s population will grow to 3,061,000 with the Perth and Peel WALGA State Council Meeting 4 September 2013 Page 186

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region projected to be between 2,275,000 and 2,356,000. It is intended that the Strategic Assessment will look even further beyond this, and examine the environmental impacts of the Perth and Peel regions growing to 3.5 million and how these impacts can be avoided, mitigated or managed.

Consultation

A Stakeholder Reference Group has been established to allow regular engagement with key stakeholder groups prior to the public release of key policy and assessment documents.

The following organisations are represented at the meetings:

 Urban Development Institute of Australia (WA);  Planning Institute of Australia (WA);  WWF – Australia;  Housing Industry Association;  Cement, Concrete and Aggregates Australia;  Property Council of Australia (WA);  Peel-Harvey Catchment Council;  Environmental Consultants Association (WA);  Conservation Council of Western Australia;  Western Australian Local Government Association; and  Local government representatives.

The meetings are also attended by government representatives from:

 the Department of the Premier and Cabinet;  the Department of Environment and Conservation;  the Department of Planning;  the Department of Mines and Petroleum;  the Department of Water; and  the Office of the Environmental Protection Authority.

A representative from the Commonwealth Department for Sustainability, Environment, Water, Population and Communities attends as an observer.

Public Comment

There will also be a three month public comment period on drafts of the following key policy and assessment documents:

 the MNES Plan;  the Impact Assessment Report;  the WAPC’s Sub-regional Structure Plans for southern metropolitan and Peel, the north-west and north-east corridors; and  the revised Statement of Planning Policy – Basic Raw Materials.

On current timelines, the objective is to release the documents for public comment in March 2014.

Comment An inception briefing for potentially affected Local Governments was held by the Association on 29th November 2012, with an interim consultation arranged by the Association for the State

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Government to brief both the Outer Metropolitan Growth Policy Forum and senior planners from potentially affected local governments on 15 August 2013.

Due to the complexities and geographic scale of the Strategic Assessment, progress in the drafting of the MNES Plan, Impact Assessment Report, and the aforementioned Sub-regional Structure Plans and the revision of the Statement of Planning Policy – Basic Raw Materials has taken much longer than the state departments and agencies initially expected.

It therefore remains unclear whether the anticipated timeline for the public release of these documents (March 2014) will be met. Once the documentation has been released for public comment, it is expected that all affected local governments will seek to make submissions on the relevant matters, with particular reference to the sub regional structure plans, and that the Association will submit a composite submission for consideration of State Council, prior to the public comment deadline.

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6.4 National Strategic Plan for Asbestos Awareness and Management Update (05-012-04-0002 EF) By Erin Fuery, Senior Community Policy Advisor

Moved: Mayor H Zelones Seconded: President Cr K Chappell

That the update on the National Strategic Plan for Asbestos Awareness and Management be noted.

RESOLUTION 261.4/2013 CARRIED UNANIMOUSLY

In Brief  In August 2012, the Australian Government released the Asbestos Management Review Report.  The aim of the Review was to make recommendations for the development of a national strategic plan to improve asbestos awareness and management in Australia.  The Australian Government has announced an allocation of $6.4 million to assist the Asbestos Safety and Eradication Agency to implement the National Strategic Plan for Asbestos Awareness and Management.

Attachment Nil.

Background In August 2012, the Australian Government released the Asbestos Management Review Report. The Review’s terms of reference had a broad scope and encompassed asbestos management issues beyond work health and safety (WHS), including environmental and public health issues. The review also looked at relevant local and international initiatives that could be considered best practice.

The primary aim of the Asbestos Management Review was to make recommendations for the development of a national strategic plan to improve asbestos awareness and management in Australia.

The Report recommended that the National Strategic Plan have six priority areas, including:

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 Identification;  Management;  Transport, storage and disposal;  Awareness;  Education; and  Information sharing.

The Report identifies Local Government as being integral to the successful implementation of a number of initiatives outlined in the Strategic Plan. ALGA has coordinated much of the sector’s response to the Review and the Strategic Plan at the national level. The Association has continued to provide input into these negotiations, particularly around the following issues:  WA Local Governments disagree with the assumption that Local Government is the most accessible and appropriate level of government to have responsibility for initially receiving and recording data in relation to the location of asbestos in dump sites and government and commercial properties.  For regional and remote Local Governments, as well as the bigger Local Governments in the Perth Area, there is not necessarily the time to inspect every single site prior to issuing an approval. So assuming that every single site is inspected as part of the approvals process is wrong.  Having Local Government responsible for the monitoring of property that does not belong to the Local Government is not appropriate.  The potential costs to home owners, although noted in the report, need to be fully considered. Incentives may need to be provided.  Incentives to remove asbestos should be incorporated. This could include the free disposal of asbestos waste.  Overall, Local Governments do not have the resources available to undertake inspection, identification, reporting or enforcement duties, let alone the management of a database.  The Report mentions the challenges for remote communities in operating disposal facilities. Is anything being proposed to address this?  Local Governments have, and should continue to have control over, what disposal charges they set to ensure the viability of landfill as businesses. Additional State Government charges on top of disposal to cover operational charges, for example waste levies, should be reviewed.

These issues were also communicated to the Australian Government in a workshop held in Perth in April 2013, the purpose of which was to provide some guidance on many aspects of the Strategic Plan. Representatives from both the Association and Local Government were in attendance.

Comment The Asbestos Safety and Eradication Agency (the Agency), the creation of which was recommended in the Report, commenced operations on 1 July 2013.

On Wednesday 31 July 2013, Minister for Workplace Relations Bill Shorten announced an allocation of $6.4 million for the new Asbestos Safety and Eradication Agency to implement the National Strategic Plan for Asbestos Awareness and Management. This $6.4 million will allow the Agency to develop strategies for awareness raising, conduct research, improve identification techniques and finding and sharing best practice in asbestos management and handling.

The Agency will coordinate across all levels of government and stakeholders in the implementation of the Strategic Plan. At this time, Victoria is the only state not publicly supporting the development of the Strategic Plan, stating that they are actively involved in addressing asbestos risk at a state-level.

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The Association, through ALGA, continues to negotiate with the Australian Government for the best possible outcomes for the sector and their communities in regard to the management of asbestos. More information on the implementation of strategies under the Strategic Plan will be communicated with the sector once it becomes available.

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6.5 State Budget 2013-14 (05-088-03-0001 PS) By Paul Schollum, Policy Manager Economics

Moved: Mayor H Zelones Seconded: President Cr K Chappell

That State Council note the key points for Local Governments from the 2013-14 State Budget.

RESOLUTION 262.4/2013 CARRIED UNANIMOUSLY

In Brief  The State Government has indicated that its growing debt and a decrease in WA’s economic growth rate have necessitated tax increases and spending cuts.  The quantum of the Country Local Government Fund has decreased compared to previous State Budgets. This is largely due to a reallocation of Royalties for Regions revenue.  The Budget provides no indication of the expenditure that will be required beyond 2013-14 for Metropolitan Local Government Reform.  A number of programs have received additional funding, including: the State Underground Power Program; Community Sporting and Recreation Facilities Fund; Community Pool Revitalisation; Fire Crew Protection; and the WA Natural Disaster Relief and Recovery Arrangements. Attachment Nil Relevance to Strategic / Business Plan  Providing strong representation for Local Government  Providing effective leadership for Local Government  Building a positive profile for Local Government  Enhancing the capacity of Local Government to deliver services

Background The 2013-14 State Budget was released on 8 August and is the result of some ‘tough but necessary decisions’ according to the State Treasurer, Troy Buswell. Spending cuts and tax increases were deemed necessary to control the State Government’s growing debt, which is expected to increase from $22 billion in 2013-14 to $28.4 billion in 2016-17.

The State Treasury is forecasting that WA’s economic growth will moderate from 5.75% in 2012- 13 to 3.25% in 2013-14, due to a decreased in levels of business investment. Nonetheless, WA is still expected to have a higher economic growth rate than Australia as a whole. Commodity exports and the housing market are expected to become the key contributors to economic growth in 2013-14.

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Comment The highlights of the State Budget from a Local Government perspective are as follows:

Country Local Government Fund (CLGF)

The following table compares the CLGF allocation announced in last year’s Budget compared to the current Budget:

2012-13 2013-14 2014-15 2015-16 2016-17 $m $m $m $m $m CLGF 2013-14 Budget 76.4 34.5 44.6 9.0 9.0 CLGF 2012-13 Budget 90.0 90.0 100.0 95.0

The decrease in the CLGF is essentially because of a reallocation of Royalties for Regions (RFR) – some RFR revenue is now being used for spending that was previously paid out of consolidated revenue, e.g., expenditure on Regional Development Commissions and Small Business Development Commissions.

The Budget papers state ‘future funding for projects will be possible through programs aligned with the Regional Centres Development Plan, the Regional Development Commissions Regional Blueprints and the whole-of-government State Planning and Development framework’. However, the Regional Centres Development Plan is only $16 million over the next four years and is already included in the CLGF totals for this period. Therefore, the only obvious potential ‘new funding’ for rural LGs to compensate for the decrease in the CLGF is the additional $40 million over four years listed under ‘Regional Strategic Projects’ (the Budget states these are ‘funds set aside for the Regional Development Council and the Regional Development Commissions to plan and prioritise spending’).

Local Government Roads

Under the State Road Funds to Local Government agreement, 27% of Vehicle Licence Fees are directed to fund work on local roads. The State Government expects that revenue from Vehicle Licence Fees will grow by 8.0% in 2013-14 and by about 10.0% in subsequent years.

The allocation of State funding for Local Government roads is shown by the table below:

2012-13 2013-14 2014-15 2015-16 2016-17 $m $m $m $m $m

State Government funding for LG roads 163.6 193.7 186.7 196.7 232.6 WANDRRA funding for LG roads 39.4 12.5 12.5 12.6 12.6

Total 203.0 206.2 199.2 209.4 245.3

There is an apparent mismatch between the growth rates of Vehicle Licence Fee revenue and the changes in State Government funding for Local Government roads suggested by the above table. The Association is following up on this issue with Main Roads WA.

From the Road Trauma Trust Account, $12.1 million will be spent in 2013-14 on improving road safety outcomes at priority metropolitan intersections. In the same year, a further $31.3 million will be spent on improving safety outcomes from regional run-off road crashes. WALGA State Council Meeting 4 September 2013 Page 193

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Metropolitan Local Government Reform

The State Budget says: ‘a total of $2 million will be spent in 2013-14 as initial support to metropolitan Local Governments in planning for the implementation of reform’. The State Budget provides no indication of the reform expenditure that will be required beyond 2013-14.

Swan River

Although the State Government made a pre-election commitment for an additional $16 million to the Swan River Trust, this funding was not in the Budget. This is a disappointing outcome for WALGA, which has previously advocated for much-needed initiatives to improve the health and amenity of the Swan River.

Electricity and Street Lighting

The following table shows the Budget’s projected increases in street lighting and other tariffs:

2013-14 2014-15 2015-16 2016-17 % % % %

Small business (L1/L2) 4.0 7.0 7.0 7.0

Medium business (L3/L4) -3.4 1.0 3.6 2.6

Medium business (R3 – contestable) -6.3 0.3 3.9 2.5

Street lighting (Z) 11.8 3.5 3.8 3.7

As with previous years, street lighting tariffs have again increased substantially – by 11.8% in 2013-14. However, the R3 tariff appears to offer good value to those Local Governments who have been able to switch to this contestable option.

Landfill levy

There have been no changes in the rate of the landfill levy or the current levels of hypothecation to the Waste Avoidance and Resource Recovery Account. Nonetheless, the Treasury is forecasting a slight increase in Perth’s recycling rate:

2011-12 2012-13 2012-13 2013-14 Actual Budget Estimated Budget Actual Landfill levy revenue ($m) 40.4 38.8 43.0 43.2

Proportion of waste in the metropolitan area diverted from landfill through recycling (%) 36 45 43 45

Other programs

There are a number of programs affecting Local Governments where the Budget indicates spending will be increased:

State Underground Power Program (SUPP)

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The SUPP will receive an additional $20 million per year from 2014-15 to 2016-17. The expenditure will complete Round 5 and begin Round 6 of the SUPP.

Community Sporting and Recreation Facilities Fund (CSRFF) An additional $20 million has been allocated from 2014-15 to 2015-16 for community groups and Local Government authorities to develop sport and recreation infrastructure.

Community Pool Revitalisation This program begins in 2015-16 and is intended to provide an annual grant of up to $30,000 to all regional Local Governments that have a public swimming pool. The funds are for maintenance and upgrading and the scheme is expected to cost $3 million per year.

The increased funding for swimming pools and the CSRFF can be regarded as a very good outcome – WALGA has long advocated for increased funding towards fitness and recreation infrastructure for the State’s communities.

Fire Crew Protection $3.1 million is allocated from 2013-14 to 2014-15 for installing personal protective fire blankets and radiant heat shield curtains in 981 firefighting appliances that operate in a bushfire environment.

Western Australian Natural Disaster Relief and Recovery Arrangements (WANDRRA) The Budget is providing an additional $12.0 million from 2013-14 to 2016-17 to meet claims for costs that may be incurred by Local Governments in the event of future natural disasters.

Major Infrastructure Projects

The 2013-14 Budget sets out an ambitious program of infrastructure spending in an attempt to support and accommodate future growth in the State’s population and economy. Over the next four years, $26.9 billion is allocated for infrastructure expenditure, with $7.5 billion to be spent in 2013-14. The projects include:

 $432 million over the next four years towards the $1.9 billion MAX light rail service  $174 million over the next four years for the $2 billion airport rail link  $325 million over the next four years for the Perth to Darwin Highway  $46.5 million over the next three years to build a multi-storey car park at Edgewater train station  $1.1 billion in 2013-14 towards the ongoing hospital building program  $582 million towards school infrastructure in 2013-14.

First home owners grant

The State Budget included changes in the first home owners grant. Previously the grant was $7,000 for purchasers of new or existing homes. But with changes announced in the Budget, purchasers of new homes will now receive a $10,000 grant. Purchasers of existing homes will now only be eligible for a $3,000 grant.

New $273m agriculture program

The State Budget included a new initiative to benefit WA’s farmers: the ‘Seizing the Opportunity Agriculture’ program. This program will spend $273 million from 2013-14 to 2016-17 ‘to support the transformation of the State’s agricultural sector, creating growth and prosperity in regional communities’. Key aspects of the program include funding for research and development, land and water, infrastructure investment, and trade and skills development.

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7. ORGANISATIONAL REPORTS 7.1 Key Activity Reports

V 7.1.1 Report on Key Activities, Environment and Waste Policy Team (01-006-03-0017 MB)

By Mark Batty, Executive Manager Environment and Waste

Moved: Cr R Winzer Seconded: President Cr E O’Connell

That the Key Activities Report from the Environment and Waste Unit to the September 2013 State Council meeting be noted.

RESOLUTION 263.4/2013 CARRIED UNANIMOUSLY

The following report outlines key activities for the Environment Policy Unit since the July 2013 State Council meeting:

Local Government Convention 2013

The Environment and Waste Team organised a number of engagement opportunities for Local Governments at this year’s Local Government convention. These included:  An Environment and Waste Team booth to communicate the services available to Local Governments.  A Water Corporation booth to provide information about the Water Corporation and how to become a WaterWise Council.  A Regional Natural Resource Management (NRM) Group booth to facilitate information flow between Regional NRM groups and Local Governments.

Environment Policy

Biosecurity – Cotton Bush

The Association is continuing its work on a range of biosecurity issues. A survey about cotton bush was recently released, with a good response rate received from Local Governments so far. Please encourage your peers and Local Government staff to complete the survey to help strengthen the Association’s future advocacy.

Biosecurity – Rainbow Lorikeet and Introduced Corella

The Association recently published results from its rainbow lorikeet and introduced corella survey, finding 10 Local Governments experience issues with introduced corellas, and five of these also have trouble with rainbow lorikeets. Those Local Governments experiencing problems with introduced birds are spending an average of $17,700 on control each year.

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The Department of Parks and Wildlife and the Department of Agriculture and Food, in consultation with the Association developed a Rainbow Lorikeet and Corella Management Response Strategy. State Government representatives will be presenting the response strategy to the East and Metropolitan Zones in this round of zone meetings, and the document will be made available to all Local Governments. More information is available in the item for noting section of this agenda document.

Biosecurity – Recognised Biosecurity Groups

The Association recently wrote to the Department of Agriculture and Food (DAFWA) and then followed up with a meeting to reiterate Local Government’s position on Recognised Biosecurity Groups (RGBs). The Association also offered to help DAFWA communicate RGBs to the Local Government sector, which was well received. The Association will meet with the Biosecurity Council in November, to again reiterate Local Government concerns and to report on outcomes from the Local Government Annual General Meeting. The Biosecurity Council reports directly to, and advises the Minister for Agriculture.

Stable Fly Management Plan

DAFWA recently provided a copy of the Stable Fly Management Plan 2013 declared under the Biosecurity and Agriculture Management Act 2007. DAFWA intends to commence operation of the Plan on 1 September 2013 when the existing poultry management regulations expire. The plan details management actions required by Local Governments (13) in declared areas. An Advisory Group with Local Government representation will meet to consider the effectiveness of the plan following the next summer season in 2014.

Changes to Water Services Legislation

Twenty Local Governments have licences from the Economic Regulation Authority (ERA) to provide water or sewerage services to their communities. The new Water Services Act 2012 is expected to be proclaimed in the next two months and will require some changes to the licences in the areas of billing and customer service. The Association is liaising with the ERA and the Department of Water to develop a response to the new requirements on behalf of members.

Environment Survey Results

The Association conducted an Environmental Issues Survey to ensure a thorough understanding of the most important environmental issues facing Local Government in both rural and urban areas. A detailed summary of the survey results will be released to Local Governments shortly.

Grant Assessments

The Environment Team is regularly asked to represent Local Government on assessment panels for State Government Grant and Awards Programs. We recently assessed funding applications for Coastwest Grants and the State NRM Program Community Grants, and applications for the 2013 WA Coastal Awards for Excellence. Participating in these assessments gives the Association an opportunity to identify best practice and, once the assessment is over, share the information with Local Governments.

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Local Biodiversity Program

Local Biodiversity Conservation Planning

Local Natural Area prioritisation models for the Shires of Manjimup and Augusta-Margaret River have been prepared to assist with identification of locally significant areas, and to inform land use planning. These models will be finalised following stakeholder consultation.

Areas of Priority Conservation Action for improved connectivity were identified for the South West Group of Local Governments, including the Cities of Fremantle, Melville, Cockburn, Kwinana, Rockingham and the Town of East Fremantle.

A fauna habitat workshop was held in Albany on Monday, 22 July as part of the conservation planning project for the Albany Regional Vegetation Survey Phase 2.

State-wide online Environmental Planning Tool

The online Environmental Planning Tool provides easy access to spatial information about environmental attributes relevant for consideration in land use planning and natural area management. The Tool was expanded in early August to the whole of Western Australia. Access is managed through Local Government specific login. Presentations on how to access and use the Tool were given at the Local Government Convention, Environment and Waste Team booth. For more information on how to access the Environmental Planning Tool go to the website http://pbp.asn.au/Tools/EnvironmentalPlanningTool.aspx or contact Renata Zelinova, Local Biodiversity Program Manager, on 9213 2047 or [email protected].

Biodiversity Milestone Awards

The annual Biodiversity Milestone Awards were presented at the Local Government Convention on Wednesday, 7 August. Seven Local Governments were recognised for their progress in the local biodiversity conservation planning process. Cities of Mandurah and Greater Geraldton and Shires of Murray and Chapman Valley received the Award for developing and endorsing for public consultation a Draft Local Biodiversity Strategy. Two Local Governments, the Shires of Collie and Manjimup were recognised for scoping, training and resource identification to prepare a Local Biodiversity Strategy. The City of Swan was acknowledged for scoping and resource identification to update a Local Biodiversity Strategy.

Biodiversity Fund Application

The Association submitted two applications to the Commonwealth Biodiversity Fund, Round two. Both applications were for collaborative projects to establish, protect and enhance native vegetation, and build carbon stores across Local Governments in the south west of Western Australia. The first application, which was larger and included ten Local Governments, was unsuccessful. However, results for the smaller project, which included six Local Governments, have not yet been released. If successful, the smaller project will link reserves and strengthen an ecological corridor for indigenous fauna through six Local Governments across the south west of WA.

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Natural Area Managers Network Forum (NAMN Forum)

The Local Biodiversity Team recently delivered a forum on fire risk and post fire management in local reserves, with presentations from the Department of Fire and Emergency Services, Office of Bushfire Risk Management, Department of Parks and Wildlife, Botanic Gardens and Parks Authority, Local Government, and an ecologist from the University of Western Australia. The forum was held on Thursday, 22 August, and was hosted by the City of Wanneroo.

Strategic Assessment for the Perth Peel – information session for Local Government Planners

The Association held an information session to provide local government planners with an update on the Strategic Assessment process to date, an outline of the next steps and timelines, and opportunities for sector input. The session was held on Thursday, 15 August at Local Government House.

Climate Change

London Symposium on Climate Change

The London Symposium on Climate Change was held from Saturday, 22 June to Monday, 24 June 2013 and WALGA’s Climate Change Coordinator spoke to delegates about Western Australian Local Government’s commitment to address climate change. The presentation highlighted climate change impacts specific to Western Australia and the innovative work being undertaken by the Local Government sector to mitigate and adapt to climate change. The presentation also outlined projects and policies developed by the Association to support the sector in this important work, including WALGA’s Online Local Government Project Map and WALGA’s Climate Change Management Toolkit.

Climate Change Officers Meetings The latest round of Senior Officer Group meetings was held in July with a record turnout from Local Governments. These meetings provide Local Government Climate Change staff with an update on the latest work and give an opportunity for information sharing.

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7.1.2 Report on Key Activities, Governance and Strategy (01-006-03-0007 TB) By Tony Brown, Executive Manager Governance & Strategy

Moved: Cr R Winzer Seconded: President Cr E O’Connell

That the Key Activities Report from the Governance and Strategy Unit to the September 2013 State Council meeting be noted.

RESOLUTION 264.4/2013 CARRIED UNANIMOUSLY

The following provides an outline of the key activities of the Governance & Strategy Policy Unit since the last State Council meeting.

Political Signage Guideline

WALGA is in the final stages of developing a Political Signage Guideline to assist Local Governments in their dealings with political signage leading up to State and Federal elections. State Councillors will be aware that a number of metropolitan Local Governments were involved in Supreme Court action with the WA Liberal Party, who asserted their candidates’ rights under the implied freedom of political communication in the Australian Constitution.

WALGA has received legal advice on the parameters of control to which this implied Constitutional freedom of political communication applies, with the Guideline offering advice on how best to deal with political signage which can be perceived within communities to proliferate prior to an election. In summary, it is WALGA’s advice that certain freedoms do apply to the right of candidates and their supporters to place political signage on private land, and that Local Governments do retain certain discretion when exercising their charter to provide ‘responsible government’ including oversight of public safety and building controls

Elected Members Taxation Guide

The WALGA Tax Service has updated and released its Elected Member Tax Guide to ensure currency for 2013 income tax returns. This resource includes tax rules and principles applicable to Elected Members, as well as a summary of personal tax implications relevant to their role, a technical guide for both Elected Members and Local Government administrative support officers for the treatment of transactions, a payment summary template and commentary relating to common issues. An online link to the Elected Member tax guide was included in the June Tax Newsletter sent to subscribing Local Governments of the WALGA Tax Service and can be accessed through Finance Managers. A hardcopy was also be made available to delegates of the 2013 WA Local Government Convention. The WALGA Tax Service is operated by UHY Haines Norton as a WALGA Business Service.

Local Government Election Advertising

Once again, WALGA is coordinating a composite advertising program with preferred supplier Marketforce, for all Local Governments conducting in-person elections on 19th October 2013.

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Local Governments conducting postal elections will be advertising through arrangements made by the Western Australian Electoral Commission.

The cost of participating in WALGA’s composite advertising program is $1,600.00 (ex GST) over 4 statutory adverts and one Election Day promotion advert. This represents a significant saving to Councils when compared to the cost of each advert being placed individually.

There are 61 Local Governments conducting in-person elections. The first advert in the series was placed on Saturday, 10 August, informing on the close of enrolments.

Governance Officers Seminar at WALGA Local Government Convention

The Governance and Corporate Services Unit coordinated a Governance Seminar on Thursday 8th August during the Local Government Convention. 40 Governance practitioners were present to hear from WALGA’s Legal Service Preferred Suppliers, together with the State Administrative Tribunal, on the following topics:  Kott Gunning Probity: Getting Your Contracting Processes Right; and The Sale of Last Resort: Recovery of Health Act 1911 Charges  McLeods Climate Change and Local Government Liability  Cornerstone Legal Local Government Governance; Learning from Corporate Governance  Jackson MacDonald Potential Impacts of Structural Reform  Herbert Smith Freehills Governance & Corruption: Framework, Oversight and Reporting  Civic Legal Stories from the Legal Front Line of Local Government Amalgamation  State Administrative Tribunal (1) Procedures for dealing with Local Government Standards Panel reviews; (2) Section 31: whether deliberations on matters sent back for reconsideration should be conducted in private; and (3) Problems with reviews in SAT and concurrent prosecutions in the courts.

The Seminar proved very popular with attendees and assisted to raise the profile of WALGA’s governance support and the legal preferred supplier panel.

Regional Local Government Reform

The following is information on the Councils involved and where they are in the process;

Regional Transition Groups

1) Cunderdin, Quairading, York & Tammin (South East Avon)

South East Avon RTG The Local Government Advisory Board (LGAB) inquiry into the proposal to amalgamate the Shires of Cunderdin, Quairading, Tammin and York has commenced. Public hearings were undertaken in each of the Shires during the week of 22 July 2013 with a high attendance and input from their communities. The work of the LGAB continues. Comprehensive information on the RTG can be found at www.securingourfuture.com.au

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Regional Collaboration Groups

1) Broome, Derby-West Kimberley, Halls Creek, Wyndham-East Kimberley 2) East Pilbara, Ashburton, Port Hedland, Roebourne 3) Murchison & Upper Gascoyne, 4) Exmouth, Carnarvon & Shark Bay 5) Dundas, Coolgardie, Kalgoorlie-Boulder, Laverton , Leonora, Menzies, Esperance, Raventhorpe, Wiluna, & Ngaanyatjarraku

The groups are currently considering appropriate Governance agreements.

Metropolitan Local Government Review

A separate State Council agenda item has been prepared on Metropolitan Local Government Reform.

Country Local Government Fund

A separate State Council agenda item has been prepared on the current status of the Country Local Government Fund

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7.1.3 Report on Key Activities, Infrastructure (05-001-02-0003 ID) By Ian Duncan, Executive Manager Infrastructure

Moved: Cr R Winzer Seconded: President Cr E O’Connell

That the Key Activities Report from the Infrastructure Unit to the September 2013 State Council meeting be noted.

RESOLUTION 265.4/2013 CARRIED UNANIMOUSLY

The following report outlines key activities of the Infrastructure Unit since the last State Council meeting:

Metropolitan Intersection Crash Program and Regional Run-off Road Crash Program The new Metropolitan Intersection Crash Program and a Regional Run-off Road Crash Program for state and local roads commenced in June 2013. Program details were provided to all Local Governments and Regional Road Groups. This new funding will assist Local Governments develop projects to achieve Safe System transformations on the local road network to contribute to reducing road trauma in WA. Main Roads WA has prioritised sections of the road network and metropolitan intersections and identified evidence based solutions to apply to these areas. Eligible Local Governments are required to have applications to Main Roads WA for the Regional Run-off Road Crash Program by the end of August 2013. Applications for the Metropolitan Intersection Crash Program closed at the end of July 2013.

Responsibility for Roads that are Prioritised Public Transport Routes In line with the Public Transport Plan for Perth in 2031, the WA Government is focusing on planning for a light rail system in the Perth metropolitan area by 2018. The planning process includes changes to legislation and regulation to facilitate the construction of the system, most of which will be built on public roads that are currently under the care, control and management of Local Government authorities.

The WALGA President and senior staff met with the Director General of Transport, Mr Reece Waldock to express concerns regarding the impact on Local Governments of the legislative amendments proposed by the MAX Project Steering Committee. He indicated that these were committee recommendations only and had not been endorsed.

Recommendations for drafting approval for legislative amendments have been prepared for consideration by Cabinet, although the final content is not clear.

This matter remains on the agenda for discussion with the Minister for Local Government, Minister for Transport and their senior advisers.

Western Australian Natural Disaster Relief and Recovery Arrangements More than $23 million was provided to Local Governments in 2012/13 under the WA Natural Disaster Recovery and Relief Arrangements (WANDRRA) to repair public infrastructure, primarily roads, damaged by floods and storms.

Senior representatives from the Department of Fire and Emergency Services (DFES) which administers the WANDRRA met with the State Road Funds to Local Government Advisory

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Committee in June and agreed to:  Prepare procedures and guidelines for key stakeholders, including Main Roads and Local Government.  Work with Local Government to develop and support a business case to the Recovery Services sub-committee of the State Emergency Management Committee and the Department of Premier and Cabinet for changes to the current interpretation of the Determination Attempts are continuing to convene a working group of Main Roads and Local Government representatives to resolve administrative issues that are leading to excessive time delays in claims being processed and paid.

The Impact of Heavy Vehicles on Road Wear The impact of heavy vehicles on road life is greater for roads that were not designed and constructed for this purpose, which is the case for many Local Government roads. Local Governments have been seeking a method to calculate the marginal cost associated with an industry transport task so that they can negotiate compensation. WALGA has developed a method framework to calculate costs based on a marginal cost of road damage for different road structural types.

ARRB have been appointed to model the costs of some typical West Australian road structures. A draft report has been received which requires further work and checking by ARRB. It is expected that the report will be completed by August 2013. WALGA will then assess the data and determine whether further modelling is required before developing and publishing a guideline document.

Commodity Routes Supplementary Fund Local Governments have been invited to submit applications for funding in 2014/15 to upgrade roads servicing significant freight tasks. The State Road Funds to Local Government Agreement provides $2.5 million per year to the Commodity Route Supplementary Fund (CRSF) for this purpose. The closing date for submissions is 20 September 2013.

Public Bus Stop Infrastructure In order to receive a capital contribution toward a new or replacement bus shelter Local Governments are currently required to accept responsibility and all maintenance liabilities associated with that shelter. While divergent views amongst Local Governments concerning their appropriate roles and responsibilities for bus shelters have been identified there was support to seek to establish a partnership agreement with the Public Transport Authority (PTA) concerning bus stops and associated infrastructure. A working group of Local Government officers was formed to progress this matter. A proposed partnership agreement was drafted and provided to the PTA for their consideration. The Association has been advised that the PTA is progressing this matter, but we are yet to receive a formal response.

Roads 2030 Strategic road development plans guide funding allocation by Regional Road Groups outside the Perth metropolitan area. The last review of these plans (Roads 2025) was undertaken in 2006 and 2007. A new review has been initiated by Man Roads and WALGA for the development of strategies up to 2030 (Roads 2030). The review requires that each region update their roads and strategies and this stage has now been completed. Main Roads have now prepared maps for each of the roads and these have been circulated for final review. The final documents are scheduled for completion in September where after they will be published on the WALGA website. Once finalised and endorsed, it is proposed that there be an annual opportunity for Regional Road Groups to add or delete roads from the approved Roads 2030 strategy.

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Local Government Grain Infrastructure Group The Local Government Grain Infrastructure Group, which comprises representatives from WALGA Zones impacted by the movement of grain through their regions, has met on three occasions including meeting with the Hon Jim Chown, Parliamentary Secretary for Transport. The group is reviewing its objectives and action plan and will include a focus on the potential impact on the local and State road network of up to 1 million tonnes per annum of grain being exported through Bunbury port. The project proponents, Bunge Agriculture, do not yet know which districts the grain will be drawn from, so it is impossible for Local Governments to identify preferred grain pathways and ensure that these are fit for the purpose and not subject to undue damage.

State Aviation Strategy In anticipation for the release of the draft State Aviation Strategy for consultation by the Department of Transport this year, WALGA has established an Aviation Policy Forum. The Forum has met on two occasions, implemented a survey of all Local Government airport / aerodrome operators and identified a range of matters that require attention. This work is on-going.

Road/Rail Interface Agreements The Rail Safety Act 2010 requires all rail managers and road managers enter into Interface Agreements for every rail/road crossing in Western Australia by February 2014. Interface Agreements record the risks to safety at rail/road crossings and the measures to manage those risks. WALGA continues to represent the Local Government sector on a Working Group that developed necessary templates and plans to meet the requirements of the Act.

WALGA provides ongoing consultation to Local Governments and negotiates with rail owners to assist the sector meet their obligations under the Rail Safety Act 2010. Draft Interface Agreements and risk assessment reports are being provided to Local Governments for consideration. Local Governments have commenced signing Interface Agreements.

Road Crash Data Report Prototype WALGA provided a model road crash statistical report for Local Governments that undertook the Local Government Safe System Improvement Program. Feedback on the relevance and application on the model was obtained informing development of a draft annual road crash statistical report for Local Government regions covering a ten year period. Tenders will be called from service providers to cost and produce the annual report that will assist Local Governments target their efforts to reduce road trauma on the local road network.

Guide to the use of Towed Agricultural Implements in WA WALGA is representing the Local Government sector on a Working Group reviewing the “Guide to the use of Towed Agricultural Implements in WA” published by the Department of Planning and Infrastructure in November 2007. The revision takes into account the size increase of towed and self-propelled agricultural implements/machinery on public roads; changing requirements of State Government agencies; needs of the primary industry sector; needs of Local Government; and providing a safe road network for the travelling public. Local Governments in country areas will be consulted when a draft guide becomes available later in 2013.

Operational Responsibility for Roads – Draft Guidelines WALGA in partnership with Main Roads WA and the WA Division of the Institute of Public Works Engineering Australia developed a draft document outlining the principles and practical guidelines for determining how the responsibility for operating and maintaining the different part or elements of highways and roads is to be allocated between Main Roads WA and Local Governments.

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The aim of the document is a framework for a uniform approach to determine who is responsible for what aspects at the interface of a local and State road and as a guideline for operational intent. WALGA consulted Local Governments to obtain feedback on this draft document. The perceived financial implications arising from the proposed guidelines are of significant concern to Main Roads WA. In order to progress negotiations for the acceptance of this document, WALGA is in the process of conducting an independent review of the financial implications.

Funding for Regulatory Signs and Pavement Markings Maintenance of regulatory signs and pavement markings on local roads is in most cases undertaken by Main Roads WA with funding provided through the State Road Funds to Local Government Agreement. In response to enquiries and concerns expressed by Local Governments in several regions, WALGA has developed a document describing the responsibilities (including funding) of Main Roads and Local Governments for providing signs and pavement markings. The document has been circulated as an Infopage in the Local Government News #31, 12 August 2013.

Road Safety Council Update The Road Safety Council (RSC) meets on a regular basis to oversee and monitor road safety progress in WA. There was no meeting in June. At the July meeting the RSC had an opportunity to discuss road policing with the WA Police Commissioner Karl O’Callaghan and receive a presentation from the School Drug Education and Road Aware (SDERA) on their new online Keys 4 Life resource. The RSC also reviewed road crash statistical reports and the end of year financial report for the Road Trauma Trust Account. In addition revised RSC governance documents and procedures were approved in line with recommendations from the Auditor General.

Regional Youth Road Safety Project The Regional Youth Road Safety Project will be trialled in the Wheatbelt regions later this year. Working group members from the WA Police, Office of Road Safety, Department of Education, Department of Transport, Insurance Commission of WA and the RAC contributed to workshops during May and June with key stakeholders. Feedback has been collated and assessed by WALGA and working group members and a number of recommendations resulting from stakeholder feedback will be implemented to promote an increase in supervised driving hours and the uptake of safer vehicles among young novice drivers in regional WA.

Local Government Safe System Project

An evaluation of the first 12 months of implementation of The Local Government Safe System Improvement Program (LGSSIP) at the Shire of York and the City of South Perth is underway. Preliminary results have found the program to be successful in assisting Local Governments to adjust their approach and management of road safety internally and externally, to achieve road safety outcomes. Planning is underway for the expansion of the LGSSIP to additional Local Governments.

Abstracts have been accepted to present on the implementation of the LGSSIP at the Australian College of Road Safety (ACRS) Conference in Adelaide 6 -7 November and the Australasian Injury Prevention Conference in Perth, 11 – 13 November 2013.

The Local Government Safe System Toolkit is currently being reviewed and should be available before the end of the year for Local Governments to use as a tool to assist them to implement the safe system approach.

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Community Road Safety Grants Program The Community Road Safety Grants Program provides funds for community-based road safety projects aligned to WA’s Road Safety Strategy, Towards Zero. Four types of grants are available: Project Grants; Speed Display Trailer Grants; Workforce Development Grants and Sponsorship. Grants are awarded monthly and those granted in June and July 2013 rounds are listed below. Grants that are not time critical have been approved in principle subject to confirmation of the Road Trauma Trust Account budget for 2013-14 when the State Government Budget is announced in August. These are marked accordingly below.

Sponsorship Grants Approved Shire of Bruce Rock - Vietnam 2013 "Back to the Bush" Veterans Reunion $1200* Veterans Reunion Committee Shinju Matsuri Inc. Shinju Matsuri "Festival of Broome" $1000* Rotary Club of Broome Broome Dragon Boat Regatta $800* Shire of Northampton Northampton Community Concert $1000* Perth College Perth College Fete $1000* Currambine Primary School Currambine Joondalup Arts &Crafts Show $1000* Ulysses Club Inc Merredin 2013 Odyssey $830* Avon Football Association AFA Preliminary Final $1000* Esperance Chamber of 2013 Business Excellence Awards $420* Commerce &Industry Northampton District Agricultural 96th Annual Northampton Show $1000* Society Inc Northampton Creative Northampton Airing of the Quilts $1000* Obsessions Lions Club of Northam Northam Lions Community Markets $1200* City of Stirling Child Protection Week $600* Shire of Northam Avon River Festival $1000 Shire of Corrigan- Ladies Day Dining Divas & Other Delights $420 Organising Committee Geraldton Combined Equestrian July Show Jumping Championships $560 Club

Grant Variations Approved Shire of Chittering Slow Down and Enjoy the Ride $22,497

*Approved in Principle- subject to State budget

Road Safety Round-Up The most recent editions of Road Safety Round-Up newsletter are available from the RoadWise website http://www.roadwise.asn.au/news/RSRup

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7.1.4 Report on Key Activities, Planning and Community Development (01-006-03-0014 AH) By Allison Hailes, Executive Manager Planning and Community Development

Moved: Cr R Winzer Seconded: President Cr E O’Connell

That the Key Activities Report from the Planning and Community Development Unit to September 2013 State Council meeting be noted.

RESOLUTION 266.4/2013 CARRIED UNANIMOUSLY

The following outlines the key activities of the Planning and Community Development Policy Team since the last State Council meeting:

PLANNING AND DEVELOPMENT

WALGA meeting with Minister for Planning

On 25th July, Association President, Troy Pickard and senior staff met with the Minister for Planning, Hon John Day and Director General, Eric Lumsden to discuss a range of planning matters, including State Council’s resolution on land use planning for bushfire risk management; the need for a substantive review of Local Government planning fees and charges to ensure cost recovery can be achieved; and the establishment of joint panel of senior Local Government and Department of Planning officers to identify improvements to the review process for strategies and schemes. It was agreed that the review of fees and charges would be referred to the Economic Regulatory Authority, to enable a review to commence as soon as possible, and that senior staff would work collaboratively to progress the other issues.

The President also raised the issue of the planning uncertainties being highlighted by coastal local governments concerned about coastal vulnerability and the potential legal implications for land use planning decision making. The Minister, noting that the gazettal of State Planning Policy 2.6 (State Coastal Planning) was imminent, agreed to work collaboratively with the Association to examine the issue in relation to land use planning decision making by both the WAPC and local government.

Local Government Planning Fees and Charges – Substantive review

At the Association’s meeting with the Minister for Planning on the 25 July 2013 the substantive review of the Local Government Planning Fees and Charges was discussed. The Department of Planning had advised that a substantive review of the fees and charges regime by the State would not be undertaken in this financial year due to the budgetary constraints of the Department. As a consequence, there will be no increase to local government fees and charges in the 2014/2015 financial year.

Whilst the budgetary constraints of the Department were acknowledged, WALGA advised that it is unreasonable to expect that the local government sector should continue to endure a fixed charging regime, in the hope that funding for a review may emerge at some future date. This situation would adversely affect the income and capacity of all local government planning departments for a number of years into the future unless a suitable and timely review is undertaken. WALGA State Council Meeting 4 September 2013 Page 208

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The Association suggested that an appropriate alternative to address the matter would be to forward the regulations to the ERA for review. The Minister for Planning indicated his support of an ERA review process being initiated and the Association will therefore continue its advocacy with the Treasurer and the ERA.

Review of Liveable Neighbourhoods – Community Facilities

The Department of Planning is currently engaging with stakeholders on the review of the Community Facilities section of the Liveable Neighbourhoods policy document (http://www.planning.wa.gov.au/650.asp)

WALGA has arranged a workshop on the 14 July 2013 with members of the Liveable Neighbourhoods Local Government Officers Advisory Group to discuss the proposed changes and to provide the Department of Planning with preliminary advice. The comments provided at the workshop will assist the Department in preparing a revised Liveable Neighbourhoods document, which will be released during a formal public consultation process.

Future of the European House Borer Containment Program

The Department of Agriculture and Food (DAFWA) and the Building Commission have sought comment on the need for the continuation of the European House Borer Containment Program to protect the building and timber industries in WA from infestation. DAFWA operated the program with Federal funding from 2006-2011, and when these funds ceased, the State stepped in with a small amount of funding to keep the program going at a lower level until 2014 so that industry funding options could be explored.

Association officers provided initial feedback to the DAFWA, due to the limited timeframe for comments to be submitted, in particular advice on the following questions: -

 Do we believe that the WA EHB program needs to continue? Yes  What mechanisms are appropriate to fund the $1.5m required for its ongoing operation? A State or Federal Government issue to resolve, in consultation with the Building Industry.  Who should manage and administer the WA EHB program? A State Government agency, either Building Commission or DAFWA.

DAFWA have been advised that this is only a preliminary advice and if they require a formal position form the sector, a report will be presented to State Council for consideration.

State Planning Policy 2.6 – State Coastal Planning Policy

The Minister for Planning recently released the revised State Coastal Planning Policy which aims to provide for the long term sustainability of WA’s coast.

The objectives of this policy are to:  ensure that the location of coastal facilities takes into account coastal processes, landform stability, coastal hazards, climate change and biophysical criteria;  ensure the identification of appropriate areas for the sustainable use of the coast for housing, tourism, recreation, ocean access, maritime industry, commercial and other activities;  provide for public coastal foreshore reserves and access to them on the coast; and  protect, conserve and enhance coastal zone values, particularly in areas of landscape, biodiversity and ecosystem integrity, indigenous and cultural significance.

Copies of the new State Planning Policy and associated guidelines can be found at http://www.planning.wa.gov.au/publications/1168.asp

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COMMUNITY

Meeting with Minister for Health

The President, Mayor Troy Pickard and Executive Manager, Planning and Community Development, Allison Hailes recently met with Hon Kim Hames, Minister for Health to discuss opportunities for better integration and delivery of children’s services. The Association presented the preliminary findings of WALGA’s study into the cost of child health centres to Local Governments and the development of a discussion paper on the need for a whole-of-government plan for early years services to address the current disjointed approach to the funding and delivery of early childhood services and infrastructure. The Minister gave a commitment to work with the Association and a pilot Local Government to analyze the current arrangements for child health services in that Local Government area, so that any opportunities for improvement could be taken forward.

Provision of Commercial Fitness in Public Areas

WALGA recently attended a workshop at the Department of Sport and Recreation with Fitness Australia to discuss commercial fitness services in public areas and the Fitness Australia recommendations for the Provision of Commercial Fitness Services in Public Areas document. WALGA provided an overview to member Councils via Infopage on 19 July 2013. The Department of Sport and Recreation is establishing a working group to progress the issue. WALGA will be attending the first meeting being held in August 2013. WALGA is already working on a range of public open space issues and will be seeking member comment in the coming month to inform our policy development and discussions on commercial fitness services in public areas.

Fitness Industry Code of Practice

WALGA has been contacted by the Department of Commerce Consumer Protection as recent inspections of compliance with the Fitness Industry Code of Practice requirements have demonstrated non-compliance by some Local Government operated fitness services. WALGA provided an overview to members via Infopage on 26 July 2013, requesting that members please ensure that their Local Government fitness services are familiar with their obligations with respect to the Code.

Alcohol and the Role of Local Government Workshop

On Thursday 18 July WALGA participated in the Alcohol and the Role of Local Government workshop hosted by Environmental Health Australia (WA) Inc. The workshop brought together experts to address and discuss alcohol-related harm in Australian communities, the impacts on Local Governments, how Local Governments can reduce alcohol related harm, planning and regulatory issues, emerging issues for Local Governments, examples and case studies of successful initiatives to reduce harm and improve management of alcohol.

New Liquor Without a Meal Permits

In early June, the Premier, Hon Colin Barnett announced actions to progress an election promise to allow liquor to be served in restaurants without a meal.

The Premier advised the Government will legislate to give all eligible establishments the right to serve alcohol without food, removing the need for a permit, as is currently the case.

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However, as the legislation will not be introduced until a review of WA's Liquor Control Act is completed, Mr Barnett advised that as an interim measure, fast-tracked permits will be available at a cost of $50.

Up to 500 WA restaurants are expected to take advantage of the fast-tracked permit system allowing them to serve alcohol without food.

Of the 819 licensed restaurants in WA, only 136 currently have approval to serve alcohol without a meal. Those with space for less than 120 people can currently apply for a permit to do so, but it involves a $400 application fee and significant approval time.

As at 26 July 2013 there has been no consultation with Local Government about the interim Liquor Without a Meal permit process. WALGA provided an overview to members via Infopage in July and advised that WALGA is writing to the Department of Racing, Gaming to request that Local Governments receive notification when a Liquor Without a Meal permit is issued to restaurants within their Local Government area. WALGA will update members on the outcome.

Review of Plumbing Regulation in Western Australia

The Minister for Commerce is undertaking a review of Plumbing Regulations in Western Australia. ACIL Allen Consulting (ACIL Allen) have been appointed to lead the consultation process. WALGA provided the sector with advice on the review via an Infopage (20 June 2013) to encourage Local Government to provide feedback to the consultant. A significant amount of feedback has been received and indicated a lack of harmonisation between plumbing regulation and the requirements of the Health Act and subsidiary regulations.

Review of the Heritage Loan Subsidy Scheme

The Association and the Heritage Council have appointed Know L’Edge consultants to undertake a review into the Heritage Loan Subsidy Scheme, and to make recommendations to the Heritage Loan Subsidy Scheme Governing Board as to the future of the Scheme and the money that has accrued over the past few years.

The consultants have begun contacting Local Governments and residents to get a better understanding of the value of the Scheme, and whether or not the service should continue in this form.

The consultants are due to present their final recommendations to the Governing Board in November 2013.

Family Day Care

On 1 August 2012 new legislation for Family Day Care came into effect in Western Australia including the National Quality Standard; and Education and Care Services National Law (WA) Act Regulations 2012. To view this legislation please visit:

http://www.acecqa.gov.au/national-quality-framework/the-national-quality-standard http://www.slp.wa.gov.au/legislation/statutes.nsf/main_mrtitle_12929_homepage.html

Family Day Care WA is the peak body representing Family Day Care (formally known as Family Day Care Schemes of WA). Recently Family Day Care WA met with WALGA about concerns that Local Governments may not be fully aware of the recent legislative changes and their impact on current operating arrangements which has led to operating restrictions that are not consistent with the new legislation and sought to work with WALGA to address this. Other issues raised include

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disparity of fees and requirements across boundaries, operational times, restrictions on child numbers, parking and outdoor play spaces.

WALGA sought member feedback via an info page and faxback on 14 June 2013. The feedback received 30 responses (11 metro, 19 regional and remote).

The feedback indicated a mixed understanding of the current legislation. Many cited great examples of policies in place and other requested further support; notably how to balance the provision of service with neighborhood amenity.

WALGA intends to work with Family Day care WA and members to address the issues raised.

Swimming Pool Operating Subsidy

WALGA has advocated for a full review of the Swimming Pool Operating Subsidy for a number of years. Recently the Association sought updated advice from members on the costs of operating swimming pools and related issues. Common themes emerged from the feedback with most respondents concerned with the following issues relating to their public swimming pool:

 Costs to operate and maintain equipment to align with Code of Practice, compliance and legislation.  Aging infrastructure  Attracting, retaining and training staff  Annual net financial losses  Customer retention  Managing community expectations

Following consultation WALGA wrote to the Treasurer, Hon Troy Buswell Treasurer, outlining the issues and requesting a full review of the Swimming Pool Operating Subsidy including appropriate indexation and allocation. The State Budget released on the 8th August includes an additional program of funding for community pool revitalization. The program begins in 2015-16 and is intended to provide an annual grant of up to $30,000 to all regional Local Governments that have a public swimming pool. The funds are for maintenance and upgrading and the scheme is expected to cost $3 million per year.

Community Sporting and Recreation Facilities Fund (CSRFF)

In addition to the swimming pool program, an additional $20 million has been allocated from 2014-15 to 2015-16 for community groups and Local Government authorities to develop sport and recreation infrastructure. The increased funding for swimming pools and the CSRFF can be regarded as a very good outcome – WALGA has long advocated for increased funding towards fitness and recreation infrastructure for the State’s communities.

EMERGENCY MANAGEMENT

WALGA meeting with Fire Commissioner

Association representatives recently met with Fire and Emergency Services Commissioner Mr Wayne Gregson, to outline Local Government concerns about a range of issues related to emergency management arrangements, particularly those related to bushfire.

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preparedness, response and recovery arrangements it is clear that there is no single vision or plan for WA, that outlines what we are seeking to achieve. Mr Gregson was advised that Local Governments require clarity about the State’s overarching vision so that the individual and shared roles, responsibilities, policy and resourcing requirements can be identified. The Commissioner agreed there is a need to ensure clarity and integration and committed to providing details of the DFES Project Plan. Specific discussions were held on the Emergency Services Legislation Review; development of Bushfire Risk Management Plans; Emergency Services Levy; State Recovery Arrangements; modifications to Volunteer Bushfire Brigade vehicles; cost of meeting fire requirements in regional areas; and the pilot Kimberley Fire Service.

A detailed report on the need for an integrated strategic plan for emergency management in WA is included in the main agenda.

The Department of Fire and Emergency Services (DFES) has initiated a number of developments that have the potential to greatly impact Local Government bushfire arrangements:

1. Centralised Emergency Management Agency in the Kimberley Region DFES has approved a three year trial which commenced on 5 August 2013 which will initially see the transfer of control of some bushfire legislative responsibilities from the four Kimberley Local Governments to DFES.

It is anticipated that the transfer of bushfire response and day to day administration of the Kimberley Bushfire Brigades will be achieved through a Memorandum of Understanding (MOU). Local Governments will still be responsible for fire prevention and mitigation strategies as included in the Bush Fires Act 1954, and the management of the Emergency Services Levy (ESL) application and acquittal process of the Local Government Grants Scheme (LGGS).

2. Bushfire Risk Management Plans (BRMPs) DFES is currently investigating how to implement provisions under Part Two of Westplan- Bushfire that state: Bushfire risk management must be underpinned by a rigorous process (such as AS/NZS ISO 31000:2009) that identifies, analyses, assesses, treats and reviews risks. It is the goal of this plan to ensure each local government area across the State develops an integrated bushfire risk management plan across all tenures which details the bushfire prevention and mitigation measures.

The Association does have a position on BRMPs and the subsequent shift of responsibility of bushfire risk management to Local Governments (Resolution 129.6/2012). In response to the Association’s advocacy on this issue, the State Government has made a commitment that before this project progresses, an understanding of the full cost of the proposal will be quantified. In addition, an assessment of the resources required (expertise and well as financial) by each Local Government with reference to potential governance changes in light of the emergency services legislation review needs to be undertaken.

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7.2 Policy Forum Reports

7.2 Policy Forum Reports (01-006-03-0007 TB)

Moved: Cr R Winzer Seconded: President Cr E O’Connell

That the report on the key activities of the Association’s Policy Forums to the September 2013 State Council meeting be noted.

RESOLUTION 267.4/2013 CARRIED UNANIMOUSLY

The following provides an outline of the key activities of the Association’s Policy Forums since the last State Council meeting.

7.2.1 President’s Advisory Group (Tony Brown, Executive Manager Governance & Strategy)

The President’s Advisory Group has been tasked with addressing the following key issues;

I. Provide guidance and direction to the President and Deputy President of WALGA in their advisory role to the panel. II. Facilitate roundtable discussions and open forums allowing for a wide range of Local Government Elected Member and Officer input and contribution. III. Consider and review: a) Local Government governance models for metropolitan regions with particular reference to Brisbane, Auckland, Vancouver and other national and international examples b) Contemporary research and information relating to Local Government, regional governance and metropolitan regions including research and reports from the Australian Centre of Excellence for Local Government (ACELG), Directions 2031 and other relevant material. c) State Government and Local government rationalisation of services and service delivery models and responsibilities d) The appropriate boundary of the metropolitan area suitable for long term planning. IV. Develop recommendations for State Council consideration on the Metropolitan Local Government Reform review. V. Endorsement of a Communication Plan that will be prepared to keep the sector informed of any developments and information during the independent panel’s review.

Comment

The State Government has announced its response to the Metropolitan Local Government Review Panels recommendations and provided their proposal for a new structure of metropolitan governance consisting of 14 Local Governments.

The State Government positions agreed with the sectors position on all except 6 recommendations. As the review part of the metropolitan reform process is now complete the WALGA President has officially closed the President’s Advisory Group Policy Forum.

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The WALGA President has advised of his intention to create a new Policy forum for the Implementation process for Metropolitan Local Government Reform. This Policy Forum will be created shortly and the Terms of Reference are currently being developed.

7.2.2 Regional Delivery Policy Forum (Tony Brown, Executive Manager Governance & Strategy)

The Regional Delivery Policy Forum has been tasked with addressing the following key issues; i. Identify opportunities and recommend strategies relating to Regional Service Delivery. ii. Progress the principles and recommendations of the Systemic Sustainability Study concerning Regional Service Delivery. iii. Provide policy development direction in relation to the proposal for Local Government Enterprises and the advocacy surrounding this concept. iv. Provide policy development direction in respect to Local Government Sector issues concerning the Royalties for Regions programme.

Comment

The Policy Forum has not met since the last State Council meeting. The Policy Forum is currently working on the following issues/projects.

1. Regional Subsidiaries

The Association is continuing its advocacy for a new Local Government Amendment Bill to enable Local Governments to be empowered to establish regional subsidiaries. The issue has been raised with the Minister for Local Government who is supportive of re-introducing legislation on this proposal.

2. Council Controlled Organisations

The Association is continuing to advocate for legislative amendments for Local Governments to be able to establish Council Controlled Organisations to undertake commercial functions at arms-length from the Council.

3. Regional Councils

The third advocacy platform that the Association has been advocating for in respect to regional service delivery has been concerning Formal Regional Councils. WALGA has been requesting the State Government to consider reducing the bureaucracy and compliance requirements for the establishment and administration of formal Regional Councils.

The Regional Delivery Policy Forum had previously resolved;

That the secretariat undertakes further research to determine in greater detail the compliance requirements that ought to be removed from formal Regional Councils.

Correspondence has been written to all Regional Councils requesting advice on the key compliance issues that require amending or removing.

4. Development of a framework for Regional Service Delivery Models

WALGA staff is currently collating a paper outlining various Service Delivery Models.

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7.2.3 Mining Community Policy Forum (Wayne Scheggia, Deputy CEO)

The Mining Communities Policy Forum has been tasked with addressing the following key issues;

i. Monitor and assess the continuing impacts of State Agreement Acts on Local Government revenue raising capacity and service delivery; ii. Monitor and assess the impacts of State Government legislation, regulation and policies on the capacity of Local Governments to appropriately rate mining operations. iii. Develop and recommend relevant advocacy strategies in relation to i & ii; iv. Consider and recommend relevant strategies in respect to “Fly-in, Fly-out (FIFO) and “Drive-in Drive-out” (DIDO) workforce practices with specific reference to; a. The effect of a non-resident, FIFO/DIDI workforce on established communities, including community wellbeing, services and infrastructure; b. The impact on communities sending large numbers of FIFO/DIDO workers to mine sites.

Comment

The Mining Communities Policy Forum (MCPF) last met on 3 July 2013. The group’s recent activities have included:

 Writing to Catherine King (Minister for Regional Australia, Local Government and Territories) to highlight the importance of the Australian Government adopting the recommendations of the recent FIFO inquiry.  Further work investigating State Agreement Acts and the Department of State Development’s engagement with Local Governments.

7.2.4 Container Deposit Legislation Policy Forum (Mark Batty, Executive Manager Waste and Environment)

A Container Deposit System (CDS) is a form of Extended Producer Responsibility which seeks to place financial/physical responsibility for a product (at end of life) on the original producer. The Container Deposit Legislation Policy Forum has been tasked with addressing the following key issues; I. To examine proposed CDS schemes and decide on a scheme that has the best capacity to meet the objectives II. To develop an advocacy plan for the implementation of a best practice CDS, working with other supportive organisations. III. To examine options for funding of an advocacy plan.

Comment

The Policy Forum is currently on hold, pending the outcome of national considerations of Cash for Containers options.

7.2.6 Metropolitan Mayors Policy Forum (Wayne Scheggia, Deputy CEO)

The Metropolitan Mayors Policy Forum has been tasked with addressing the following key issues; 1. Advise the WALGA President on emerging policy issues and the development and implementation of significant metropolitan initiatives; 2. Identify innovative approaches to metropolitan issues; WALGA State Council Meeting 4 September 2013 Page 216

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3. Facilitate metropolitan-wide consultation, collaboration and partnerships to address metropolitan-wide policy and project initiatives; and 4. Serve as a stakeholder forum to effectively support and complement the broader work of the Western Australian Local Government Association

Comment

The Metropolitan Mayors Policy Forum met on 22 July 2013 at the City of Perth and considered a number of strategic, metropolitan issues including:  The “Vision for Waste Management in the Metropolitan Area” discussion paper; and,  A discussion paper on Affordable Housing in the metropolitan area.  Several actions in relation to waste management and affordable housing stemmed from the policy forum meeting.

Current and upcoming priorities of the Policy Forum include:  Infill Sewerage;  Movement of People and Freight  Underground Power  Red Tape Reduction;  Aged housing incorporating aged care; and,  Homelessness.

The date of the next Policy Forum meeting is to be advised.

7.2.7 Aviation Policy Forum (Ian Duncan, Executive Manager, Infrastructure)

The Aviation Policy Forum has been tasked with addressing the following key issues; 1. Guide the development of WALGA Policies concerning matters of relevance to Local Governments contemplated in the formulation of an aviation strategy for Western Australia; 2. Identify additional matters and policy responses that need to be addressed in the State Aviation Strategy from a Local Government perspective; 3. Recommend frameworks and processes to achieve on-going Local Government engagement in developing and implementing aviation strategies for Western Australia

Comment

The Policy Forum convened two meetings since the last report. A questionnaire was developed and distributed to all Local Governments operating airports or aerodromes and the results compiled. This will underpin the draft policy positions being developed addressing;  Ownership and Governance of regional airports;  Regional Airport Development Scheme;  Master Planning for Regional Airports; and  Staffing and skills development in regional airports. Timing of the release of the draft State Aviation Strategy remains unknown.

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7.3 President’s Report

Moved: Cr W Sanford Seconded: Mayor D Ennis

That the President’s Report for September 2013 be received.

RESOLUTION 268.4/2013 CARRIED UNANIMOUSLY

7.4 CEO’s Report

Moved: Cr C Mitchell Seconded: Mayor H Henderson

That the CEO’s Report for September 2013 be received.

RESOLUTION 269.4/2013 CARRIED

8. ADDITIONAL ZONE RESOLUTIONS

Moved: Mayor D Ennis Seconded: Cr W Sanford

That the additional Zone Resolutions from the September 2013 round of Zones meetings as follows be referred to the appropriate policy area for consideration.

RESOLUTION 270.4/2013 CARRIED

KIMBERLEY ZONE Disposal of Liquid Waste (Environment and Waste)

2. Request the Western Australian Local Government Association lead a request to amend the relevant legislation by indicating a licenced sewage provider or agency other than Local Government is to provide a waste service for the management and disposal of sewage waste.

AVON MIDLAND COUNTRY ZONE Closure of AvonLink and MerredinLink Rail Services (Infrastructure)

That the Avon-Midland Country Zone – 1) Raise as a matter of urgency with the WA Local Government Association, TransWA, the Minister for Transport and the Minister for Regional Development: a) Its opposition to the proposed closure of the AvonLink and MerredinLink rail service; and b) Request an extension of those two services for two years with the ticketing and travel arrangements put on the same basis as the Public Transport Authority’s passenger transport routes; and 2) Correspond with the Great Eastern Country Zone seeking support on this issue.

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CENTRAL COUNTRY ZONE 1938 Art Deco Town Hall (Planning and Community Development)

3. The Central Country Zone request that WALGA determine the status of the municipal heritage inventory process with particular reference to rural regional heritage.

PEEL COUNTRY ZONE Assistance for WA”S Rural Local Government and Communities (Economic)

That WALGA prepare a report looking at the implications for hypergrowth councils.

GREAT SOUTHERN COUNTRY ZONE Telehealth – Shire of Jerramungup (Planning and Community Development)

That the Great Southern Zone requests that WALGA, in representing all rural municipalities, petition the State and Federal Governments to establish a Medicare Benefits Schedule (MBS) Item Number for telehealth consultants with General Practitioners.

CENTRAL METROPOLITAN ZONE Rainbow Lorikeet and Introduced Corella Management Response Strategy (Environment and Waste)

That WALGA: 1. Further investigates rainbow lorikeet and introduced Corella control, and facilitates for State Government agencies to enter a formal control proposal to Local Government. 2. Lobbies the State Government to match local government investment into rainbow lorikeet and introduced Corella control.

9. MEETING ASSESSMENT Mayor Ron Yuryevich provided feedback as to the effectiveness of the meeting.

10. DATE OF NEXT MEETING That the next meeting of the Western Australia Local Government Association State Council be held in the Boardroom at WALGA, 15 Altona Street West Perth, on Wednesday 4 December 2013 commencing 4pm.

11. CLOSURE There being no further business, the President declared the meeting closed at 6.46pm

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