The Local Government Reform Implementation Act 2007 (“the Implementation Act”), assented to on 10 August 2007, adopts the recommendations of the Local Government Reform Commission and establishes the machinery and structural arrangements necessary for existing Councils to develop and implement change management plans to effect the local government reform process.

Under the Implementation Act, local governments are categorised as either new, adjusted or continuing, depending on whether there will be mergers with other local government areas or if the local government boundary has changed in part or not at all.

Local Transition Committees ("LTC") have been established for new and some adjusted local governments to develop and implement actions plans prior to the changeover date.  The changeover date is at the declaration of the poll for the local government elections on 15 March 2008.

New Local Governments (Regional Councils)

Interim Chief Executive Officers ("CEOs") are only appointed for new local governments (regional councils and the new Townsville City Council).

The Interim CEO and LTC are required to manage the interim arrangements, liaising with existing Councils, and to develop, oversee and implement a Transition Action Plan prior to the changeover date. 

The State Government is expected to release Action Plan Templates and Guidelines and to table the Reform Implementation Regulation shortly. 

In the meantime, existing Councils, Interim CEOs and LTCs should be considering the following issues which must be addressed prior to the changeover date:

• rationalisation of local laws and subordinate local laws;
• the operation of delegations;
• the amalgamation of charges, assets and liabilities;
• preparation of financial statements, including for auditing purposes;
• the allocation of resources including employees;
• custody of records, references in documents and records such as registers, and
• how to deal with current legal proceedings.

Under the Implementation Act the following provisions are also made:

• existing public offices can be kept for up to one year until new premises becomes operational;
• the Interim CEO remains as acting CEO for no longer than 6 months after the changeover date until the new CEO is appointed.

Adjusted Local Governments

Logan City Council/Beaudesert Shire Council, Logan City Council/Gold Coast City Council and Banana Shire Counil/Taroom Shire Council all must set up transferring area LTCs.

These transferring area LTCs must follow the requirements for new local government LTCs to the greatest extent possible, with the exception that an Interim CEO is not appointed.

Whilst the extent of rationalisation and amalgamation will not be as great, existing Councils will need to consider how to address property and resources within those transferring areas and whether legal proceedings, and local and subordinate laws relate to those areas.

In General

The Implementation Act makes a number of more general provisions:

• A Workforce Transition Code of Practice provides for employment security, retention of staff and minimising the impact of the reform on staff for existing local governments that merge or are adjusted.
• The 2008 elections will be conducted by the Electoral Commissioner as Chief Returning Officer.  Local governments will still be required to reimburse the State, including the Electoral Commission, for the reasonable costs of conducting the elections. Some roles of the CEO of a local government will be replaced by the Interim CEO until a returning officer is appointed.
• During the transition phase existing Councils are prohibited from making "major policy decisions" unless Ministerial approval is granted.  Existing Councils will be liable for damages suffered by other parties if a major policy decision has not been approved.
• A Local Government Remuneration Tribunal has been established to determine categories of local governments.  The level of remuneration and reimbursement received by Mayors, Deputy Mayors and Councillors will be determined according to those categories.
• The first review date by which a local government can commence reviewing its Local Laws and Subordinate Local Laws has been returned to 1 January 2008. The period of the first review therefore will expire on 31 December 2010.   The review of local laws is to include a review for any anti-competitive provisions.
• Provision has been made for local governments to prepare and adopt a certified consolidated version of a local law which can incorporate the original local law with all its amendments.

Conclusion

The machinery and structural arrangements to facilitate the implementation of the local government reform process has been established with further guidelines and legislation to be released shortly.

For more information please contact any of our Local Government Transition Team.

OUR LOCAL GOVERNMENT TRANSITION TEAM

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