Is the LGA Lunatic Asylum correct in declaring there is no benefit to Councils being a member of the LGA?

As covered in my recent Lunatic Asylum blog post a claim being made by many elected members in the industry. This includes from within Unley Council.

They claim there is no benefit to Councils being a member of the LGA?

LGA LogoCity of Unley logoIndeed, two questions have been asked in our chamber along these very lines. Questions based on there being no benefit to Councils being a member of the LGA.

Answering the first question, to access these services the City of Unley invests $ 55,000.00 per annum.

Our membership entitles Unley of the services of the LGA in both advocacy and assistance.

The LGA is a representative body. Accordingly, it succeeds on the input of its members.  My blog “Are Your Leaders Showing Leadership or Merely Expert Spectators?”examines this observation.

Membership provides us with the following opportunities:

  • For us to share experiences with the wider local government industry;
  • To learn from each other;
  • To work together to find solutions for common obstacles; and
  • Make our work more cost-effective.

This is difficult to monetise. Anyone who is a member of any other association would recognise this. Whether in a sporting club, a social club, or a church, members recognise the need to have an association.

Businesses often ally themselves to an association. Even the trade union movement and all the Unions recognise this through the Council of Trade Unions.

Rate payers fund our membership. Let’s examine some of the benefits.

LGA advocacy is invaluable.

While we may obtain some grant funding by way of direct negotiation, we still need the LGA. We simply do not have the resources to be in continuous dialogue with the State or Federal Government.

We believe we are in the running for some funding for the King William Road redevelopment. Due to the advocacy on the part of the LGA this takes much pressure off the budgeting of this necessary project.

They influenced the implementation of the State’s new planning system.Likewise they provided input into the new Planning and Design Code. This because we we could not have done so on our own with some consistency with other Councils. Consequently, one recent major win here was their successfully obtaining relief for councils from contributing to the SA Planning Portal contributions. Sorry but I can’t remember how much this was but it was significant.

They have made submissions with our input to the State Government on the Community Engagement Charter, Design Code and Accreditation Scheme. Likewise they have advocated on the e-planning portal. This has resulted in a 12-month delay and a saving to councils upwards of $24,000.00.

The LGA provides direct assistance in several key areas.  Thankfully this can be measured financially.

Education and training available through the LGA would cost us at least $ 65,000.00 pa if we were to source like programs ourselves.

Just keeping up with legal changes confronting Councils and delegations and authorisations adds $ 10,000 pa to our costs.

Financial assistance is a major benefit. They provide this by way of low cost loans via their finance arm. As a result they save the 68 councils an average over $100,000.00 pa each. Most noteworthy, some Councils have tested this over time. Their investigations have concluded that the LGAFA to be the best avenue of low cost loans.

Likewise, the workers compensation scheme and the mutual liability scheme save on average across the 68 councils around $ 500,000 each.

This year is an election year. Because of their resources the LGA provides the bulk of the cost of achieving this, saving us around 0.5 FTE and a cost of $ 50,000.00. Especially relevant this is the same as the membership fee.

In conclusion, I suggest anyone suggesting there is no benefit to Councils being a member of the LGA is not demonstrating leadership.

2 Comments

  1. Cathy   •  

    Really interesting seeing the pro side of the argument – sounds like you make a great case. I can see why Adelaide Council might be leaving as they are a law unto themselves and certainly see their territory as the enemy of the rest of Adelaide. But what about Marion – are they still out or in?

    • Don Palmer   •     Author

      Marion pulled out from memory a couple of years back but rejoined within a month.

      Honestly Cathy, I think when you hear from elected members you have to wonder if they are postulating for votes by getting onto what is a populist view. Let’s face it many, if not most, people have a negative view of Councils and that “irrelevant” 3rd tier of Government.

      I try to remain pragmatic and I often find myself prompting people with a “be careful what you are asking for”.

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