Regulation Review - IPART - NSW Government

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2 Local government compliance and enforcement functions IPART seeks comment. 3 Are there areas where compliance or enforcement roles of local government and State Government agencies overlap or are unclear? What are the impacts of this on business, the community, councils or the State Government? 4 Can you provide examples of poor consultation or coordination between local government and State Government agencies in relation to compliance and enforcement activities? What impact does this have on business, the community, councils or the State Government? 5 Can you provide examples of good consultation or coordination between local government and State Government agencies in relation to compliance and enforcement activities? 6 Can you suggest ways that local government and State Government agencies can work together to reduce red tape? 7 Does the Division of Local Government’s ‘Promoting Better Practice Program’ assist local government in undertaking its regulatory activities more efficiently? 8 Are there other ways to enhance assistance to councils? 2.4 The regulatory capacity and capability of local government The ToR for this review require us to consider, amongst other factors, the current capacity and capability (ie, resources and skills) of local government to undertake their regulatory responsibilities, including whether and how these can be improved. As discussed at the beginning of this chapter, councils vary significantly in terms of their areas and socio-economic characteristics. As outlined below, they can also vary in relation to their fiscal capacity and regulatory expenditure and capability. These factors can impact on the regulatory burden faced by business and the community. For example, a remote area council with a small population may have difficulty attracting skilled planners. As a result, businesses may experience greater delays in obtaining planning consents or have to comply with sub-optimal consent conditions. These factors can also affect the viability of potential reform options. For instance, reforms to instigate more risk-based enforcement activities are unlikely to be implemented if a council is lacking relevant expertise in its workforce. 24 IPART Regulation Review
2 Local government compliance and enforcement functions 2.4.1 Fiscal capacity Fiscal capacity of councils relates to their ability to raise revenue to pay for public services, which include regulatory functions. In 2008, the PC assessed local government revenue raising capacity and concluded that: capital city councils had the highest fiscal capacity, principally attributed to high business incomes and comparatively small resident populations while some remote councils also had high levels of fiscal capacity due to substantial business income from mining and petroleum activity in their area, there were others which had particularly low fiscal capacity, including some Indigenous councils on average, urban councils had intermediate levels of fiscal capacity, with urban fringe councils having the lowest levels. 31 Local government receives revenue from a variety of sources, as seen in Figure 2.1. In 2010/11, NSW local government’s revenue was around $10 billion dollars. 32 Figure 2.1 NSW Local Government Revenue Sources Taxation revenue (33%) Sales of goods and services (32%) Current grants and subsidies (11%) Interest income (4%) Other (20%) Data source: ABS, Government Finance Statistics, Australia, 2010-11, cat. 5512.0, Table 331, Table 1. 31 Productivity Commission, Assessing Local Government Revenue Raising Capacity, April 2008, p XXV. 32 ABS, Government Finance Statistics, Australia, 2010-11, cat. 5512.0. Regulation Review IPART 25
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Regulation Review - IPART - NSW Government

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