Momentum for Change, Summary Statistics and Overview of Individual Councils
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Appendix A South Australian Centre for Economic Studies Momentum for Change, Summary Statistics and Overview of Individual Councils Report commissioned by Regional Development Australia Whyalla and Eyre Peninsula Report prepared by The South Australian Centre for Economic Studies University of Adelaide June 2016 Copyright: All rights reserved. The Copyright Act 1968 permits fair dealing for study, research, news reporting, criticism or review. Selected passages, tables or diagrams may be reproduced for such purposes provided acknowledgement of the source is included. Otherwise, no part of this publication may be reproduced, stored or transmitted in any form or by any means without the prior permission in writing of the Publisher. Disclaimer: This study, while embodying the best efforts of the investigators is but an expression of the issues considered most relevant, and neither SACES, the investigators, nor the University of Adelaide can be held responsible for any consequences that ensue from the use of the information in this report. Neither SACES, the investigators, nor the University of Adelaide make any warranty or guarantee regarding the contents of the report, and any warranty or guarantee is disavowed except to the extent that statute makes it unavoidable. Authors: Associate Professor Michael O’Neil, Executive Director, SA Centre for Economic Studies Mr Mark Trevithick, Research Economist, SA Centre for Economic Studies Published by: South Australian Centre for Economic Studies University of Adelaide SA 5005 AUSTRALIA Telephone: (61+8) 8313 5555 Facsimile: (61+8) 8313 4916 Internet: http://www.adelaide.edu.au/saces Email: [email protected] © SA Centre for Economic Studies, 2016 Regional Development Australia Whyalla and Eyre Peninsula: Momentum for Change, Summary Statistics and Overview of Individual Councils Contents Contents Executive Summary i Part A Momentum for Change 1 Part B A Review of Regional Summary Statistics 7 Part C Overview of Individual Councils 16 Bibliography 98 Appendix A: LGA Governance Model for Regional Collaboration: Discussion and Considerations 100 Appendix B: EPLGA: Policy Document on Regional Economic Development Policy 108 Appendix C: Governance Checklist of Compliance with Reporting Requirements 111 Appendix D: Number of Rateable Properties, 2013-2015 from LGGC 116 The SA Centre for Economic Studies June 2016 Regional Development Australia Whyalla and Eyre Peninsula: Momentum for Change, Summary Statistics and Overview of Individual Councils Page i Executive Summary A regional economic development strategy, a regional tourism strategy, a regional transport, energy and infrastructure strategy requires a regional body to set policy, to plan, to represent and to “voice” regional priorities. Development strategy is itself sustainable; it is long-term, far-sighted and requires the consistent application of policies directed towards more fully utilising existing resources (and local assets), attracting and finding more resources (e.g. investment, mining) and improving the skill base and hence productivity of the workforce. A regional body will understand that success in all of the above derives from the fact that “the sum is greater than the individual parts” and that thinking and planning is about THE FUTURE. A strong commitment to local identity and democracy will be preserved through existing councils but a commitment to regional planning will be achieved through a new institutional structure. The momentum for change is well documented in recent reviews and reports conducted in a number of jurisdictions. However, change is not simply contemplated or undertaken “for change sake”. It is undertaken so that the regional agenda, the regional governance structure is fit for the purpose. One purpose, specifically relevant to the Eyre Peninsula is to develop and promote the region as a region of innovation in the renewable industries. Another purpose is to promote and develop the traditional grain and agricultural industries, adding value, reducing transport costs and increasing exports. A further purpose is to improve the adequacy of energy supply, water supply and transport infrastructure to enable investment, employment and population growth. In short, strengthening and building comparative advantages of the Eyre Peninsula region. A stronger economy also provides the resources to address social and community development. A single regional body comprised of the eleven Eyre Peninsula Councils would place the region as the tenth largest council organisation in terms of population in South Australia. The Eyre Peninsula region is an economic powerhouse with unlimited opportunities, but regional change, transformation, growth and development requires long-term strategy, vision and commitment. It will ultimately come from local leadership and local actions. A review of regional statistics suggests Eyre Peninsula councils are more dependent on grants, they generally have fewer rateable properties (the region has 5 of the 7 smallest councils in terms of rateable properties as at 1 January 2015) and six of the top 10 councils in terms of kilometres per 1,000 persons. Slower population growth but high and increasing cost burdens provide further impetus for change. It is unlikely that rural councils can expect to continue to receive the same level of grant funding. In addition, there is limited scope for councils to increase rate revenue. These are constraints of the status quo. The object of regional economic development is to change the status quo – increase population and the rateable base, increase tourism (numbers and expenditure), increase output (values and volumes) and exports, improve productivity, enhance infrastructure and address constraints to investment and growth. Part A of this report considers the ‘momentum for change’ which is essentially concerned with revitalising the role of local government in order that it is able to cooperatively pursue a shared (regional) agenda, to better able to partner with state government and address constraints, opportunities, issues that are essentially intergovernmental in nature. The impetus for change must start at the local level. The champions of a compelling regional economic development message are local leaders, elected officials, the RDAWEP, business and industry groups and the leaders of NGOs. It is imperative that the Eyre Peninsula community (11 councils and 58,000 people) is able to address high level strategic issues critical to the health and development of the broader regional economy. It requires a stronger statutory regional body that is capable of promoting an inter-governmental regional development strategy in partnership with others. Part B provides a ‘snapshot’ review of summary statistics of councils on the Eyre Peninsula and provides a comparison with selected, larger metropolitan councils. Part C provides a more detailed overview of the Strategic and Business Plans of the 11 individual councils and a summary of key themes that emerge from this review. The SA Centre for Economic Studies June 2016 Page ii Regional Development Australia Whyalla and Eyre Peninsula: Momentum for Change, Summary Statistics and Overview of Individual Councils Introduction and Context This paper considers a possible new or different governance model for the Whyalla and Eyre Peninsula region. The invitation to consider this question is in fact an additional Terms of Reference submitted by the South Australian Economic Development Board (EDB) to the RDA WEP. Specifically, the EDB requested the RDA WEP and SACES to report on the following: to consider a new/different/alternative model proposal for Local Government on the Eyre Peninsula. The request from the EDB is well meaning in that in an earlier Economic Statement the EDB strongly reiterated “that for South Australia to achieve its full potential it is imperative that our regions fulfil their potential”. The EDB have also strongly supported the adoption of state uniform regional boundaries arguing that this initiative “… promises better collaboration across government agencies through developing shared understandings of commonly defined regions and challenges and opportunities they face.”1 With respect to Eyre Peninsula there is geographical concordance between RDAWEP, the State Government Uniform Regional Boundary called “Eyre and Western”, SATC’s Regional Tourism Organisation, the EPNRM and the eleven councils that comprise the EPLGA. That is to say the Commonwealth through the RDAWEP see Eyre Peninsula as a region and State agencies likewise. The following discussion and review does not lead to a recommendation – that is not our role – but it does highlight the impetus for change in other jurisdictions (and South Australia) which fundamentally is concerned with effective governance to build and strengthen regional competitiveness. Just as business works in networks – clusters, agglomeration economies, value chains – government also works in networks with other tiers of government, universities, utilities, education and training providers, business and communities. Many of the issues and the development agenda of the Eyre Peninsula region are also intergovernmental in nature, in scale and scope and require a consistent “voice” to represent the potential and opportunities of the region. Local government needs to be strategic, long-sighted and visionary. Possible new governance arrangements are not simply about efficiencies or scale economies – they are a product of good systems and size (reduce