The push to give local government recognition in the Constitution

[Road_Warrior]

Some forum members asked me a while back to keep them informed of updates in this area. Given the fact that this proposal has far reaching ramifications nationally, I thought it would be appropriate to post it here in an open forum.

First, the 'for' argument:

http://www.councilreferendum.com.au/

So why do we need constitutional reform?

Including local government in the constitution is about recognising its role in Australia’s system of government and, more practically, about securing funding sources to deliver the services communities need.

Put simply, local government is an essential part of Australia’s system of government. Its contribution to our national wellbeing can be measured in economic and social terms, and more intangibly by the way it enhances our democratic way of life. It should be recognised in our national Constitution, alongside state, territory and Commonwealth governments.

In order to carry out its responsibilities, local government relies on a range of funding sources, including its own revenue measures, as well as grants from state and territory governments, and the Commonwealth. In 2009, a High Court decision (the Pape case) put into serious doubt the Federal Government’s ability to directly fund local government projects. ALGA believes that a constitutional referendum empowering the Commonwealth to directly fund local government, would put beyond doubt its ability to fund vital local projects.

Our campaign for reform will include local government stakeholders, as well as the community. We hope you’ll join us in this important campaign for constitutional reform.

The 'against' argument:

http://urbantaskforce.com.au/viewmedia.php?id=552

The Federal Government shouldn’t be advancing plans to “recognise” local councils in the Australian Constitution while those same councils are busily contributing to the nation’s housing undersupply, according to the Urban Taskforce.

The Federal Government today appointed the members of the independent expert panel that will “progress” the recognition of local government in the Australian Constitution. The Government says it will hold a national referendum on the “recognition” of local government in the Australian Constitution during the term of the current government or at the next Federal election.

The Urban Taskforce’s chief executive, Aaron Gadiel, said that the Federal Government should address the problems created by local government, before it commences an arcane discussion about their recognition in the Constitution.

“This issue shouldn’t be a priority right now,” Mr Gadiel said.

“Australia’s housing shortfall is at 200,000 homes, with a projection for it to grow to 308,000 by 2014.

“Just 42 per cent of homes sold Australia-wide are affordable to moderate-income households.”

According to a recent Organisation for Economic Co-operation and Development (OECD), report Australia’s new housing supply does not respond to price signals in the same way that it does in other countries of a similar population density.

“For example, the United States’ housing supply is four times more responsive to price signals than its Australian equivalent,” Mr Gadiel said.

“Sweden, Denmark, Canada, Japan and Finland also all enjoy new home supply that is at least twice as responsive to changes in home prices, than Australia.”

Mr Gadiel said that local councils have played a major role in blocking new housing supply, and making housing less accessible to a wide range of ordinary Australians.

“Local councils in Australia deliver less services, are smaller, and more parochial than local government authorities in other parts of the developed world,” Mr Gadiel said.

“Many have been captured by not-in-my-backyard groups, and are acting against the interests of the wider community. “Local councils should earn their place in the Australian Constitution.

“Entrenching the existing system of local government by constitutional amendment will permanently lock-in our current housing supply problems.

“The Federal Government should focus on resolving the more substantial issues, before local government is rewarded in this way.”

The Urban Taskforce is a property development industry group, representing Australia’s most prominent property developers and equity financiers.

The referendum has yet to be announced, but it appears the Federal Government is committed to it and an 18 person committee has been formed to explore the options. This is at the behest of the Greens and two Independent MP's.

I will update this thread at a later date (in a week, month whatever) when the referendum is announced.