The debate has started

Historic Australian Parliamentary resolution - passed by both Houses of Federal Parliament in 2006, recognising Australian Local Government.
"That the House/Senate:
* recognises that local government is part of the governance of Australia, serving communities through locally elected councils
* values the rich diversity of councils around Australia, reflecting the varied communities they serve.
* acknowledges the role of local government in governance, advocacy, the provision of infrastructure, service delivery, planning, community development and regulation.
* acknowledges the importance of cooperating with and consulting with local government on the priorities of their local communities.
* acknowledges the significant Australian Government funding that is provided to local government to spend on locally determined priorities, such as roads and other local government services.
* commends local government elected officials who give their time to serve their communities." (Carried)

Labor's amendment: (defeated)
That paragraph 1) be omitted and the following paragraph substituted;
· "1) supports a referendum to extend constitutional recognition to local government in recognition of the essential role it plays in the governance of Australia."

The way ahead? - Empowerment through enactment of one national Local Government Act and charter for all Australian councils with a referendum to follow?
The Australian constitution has been extremely difficult to reform since 1901. This may be due to the fact that many Australians can be easily deterred from supporting change when spoilers put doomsday scenarios or play wedge politics. The ‘republic’ referendum was lost this way. In similar fashion, previous attempts to achieve constitutional recognition of local government in 1974 and 1988 have also failed. We cannot afford to fail again.

What then is the best way ahead for local government?
Constitutional recognition of local government remains our cherished goal and Labor’s amendment to the historic parliamentary resolution recognises that fact. All the same, the federal parliament’s resolution by both the House or Representatives and Senate giving recognition to the role of local government is a major stepping stone on the way. It has been a long time coming.

The ALGA news reported the response by Australian Local Government Association president Cr Paul Bell as "a significant day for local government which has officially come of age as a key player in Australian federalism."

"The resolution acknowledges the role local government has in service delivery, its grass-roots connectedness to communities and its place in the governance of this great nation," Cr Bell said.

"We view this resolution as an important stepping stone towards our longer term goal of full constitutional recognition."[1]

The next step forward
As for the next step forward, should we focus on realising the full potential for community empowerment and the prospect of assured financial sustainability of local communities throughout Australia? The best prospect is by way of enacting one national Local Government Act?

The alternative, the status quo, pleading on the altruism of state and federal governments has a very bleak history and an even bleaker long-term outlook.

Is it likely that in achieving a national Local Government Act, we will have in some way obtained de-facto constitutional recognition? That would certainly be established if the proposed federal government legislation was to be upheld by the High Court in a challenge by the states.

After the dust has settled, and the new Act taken force, the final step, formal constitutional recognition of local government will then have its best chance for success at a referendum. The ‘yes case’ would be seeking public approval to formalise a relationship between the federal government and local government in which all Australians would be familiar and comfortable with. The ‘no case’ advocates would be denied their most potent emotion, fear of the unknown.

This next step would be no ‘orgy of centralism,’ the Prime Minister’s expression, since the federal law would be about boosting resources and decision making in regional areas through the local councils. It would be the antithesis of centralism. A national Local Government Act adopted by Federal parliament should set the visionary charter for all Australian councils with a much broader scope than state laws prescribe. That is because the national Local Government Act could have the flexibility to extend local government to services that are currently inadequately performed by the states.

This strategy is not only tremendously appealing but most importantly, thanks to the High Court, it is practical. The proposed legislation requires only the political will on the part of federal politicians. Hugh potential support from local government versus probable vehement opposition from state governments.

Visionary political parties that are in touch with the community should be encouraged to take the issue on board as party policy. The best news is that the proposed federal takeover of responsibility for regulation of Australian local government is achievable within federal parliament’s existing constitutional powers.

There are compelling reasons why federal politicians need to act promptly in the national interest to enact a national Local Government Act.
* Increasing number and complexity of regulatory and compliance responsibilities under state laws need to be streamlined and rationalised through federal legislation.
* The proposed legislation will bring about a significant and on-going dividend in red tape reduction by removing state law and administration.
* Cost Shifting by other spheres of government need stronger action than the Intergovernmental Agreement can possibly deliver with its weak enforcement mechanisms (Cost Shifting Impact: $430 million annually in NSW alone). Legislation is required.
* Increasing community expectations cause expansion of services into various areas such as health, human services, culture and education.
* Federal legislation can include these areas in the local government charter with the view to the eventual transfer to local government from state control.
* Skills shortages, demographic challenges (ageing population, sea and tree changes) can be partially addressed by the redeployment of redundant state government employees.
* Environmental pressures (water, coastal protection) needs federal funding support to local government to make achieve the outcomes sought by local communities.
* Pressures in regional and rural areas are extreme in supplementing or backfilling inadequate State services.
* Infrastructure renewal backlog and gap is huge and growing throughout Australia.
* In NSW the annual infrastructure renewal gap is $500 million.
* Already the present infrastructure renewal backlog in NSW is $6.3 billion.

The public debate has started
2GB host Alan Jones on the 'Today' show last week (Mid November 2006) called for a redefinition of commonwealth, state and local government powers, calling Australian federalism a "mess, and a lopsided mess at that." He said the public "might well opt for a national government and where decentralisation is necessary, better fund local government which has always been closer to the interests and needs of the community."

In response, ALGA President, Cr Bell said: ‘We are ready to take part in a debate on federalism - it can only be of benefit to the Australian community. Wherever I go people say the same thing. They are tired of the blame shifting, buck passing and duplication, they want their problems solved and want more cooperation between the spheres of governments.

A Constitutional Convention set up with a clear purpose, broad support, and well-thought out goals would be a significant development for Australia and one that local government would back all the way.

Local government would also welcome a forum to consider constitutional recognition for local government as part of the discussions around federalism and definition of powers. Local government achieved a milestone with the historic parliamentary resolution on recognition of local government passed by the House of Representatives and the Senate recently. I believe the words of the resolution would be a good starting point.'
[2]

Conclusion
The historic Australian Parliamentary resolution - passed by both Houses of Federal Parliament in 2006 has taken a long overdue step in recognising the contribution that Australian Local Government can make to this great nation. The proposed national Local Government Act is the next step that will give practical effect to the resolution and in so doing, set a watershed in the evolution of governance in Australia.
[1] http://www.alga.asn.au/news/20061020.php
[2] http://www.alga.asn.au/news/20061124.php?id=15f31a5e0c296f8c908a24c16c87f339