Inter-governmental relations in Australia: the cost-shifting inquiry story so far …

However, the positive response on the IGA has resulted in preliminary work being undertaken by a tri-partite working group composed of representatives from federal, state and local governments under the direction of Australian and state and local government ministers.

The local government position seeks a "robust" agreement that: assigns functions to local government by negotiated agreement; has funding arrangements locked in place; contains a mechanism to ensure agreements are not breached; and includes penalties for breaches.

Given the inherent sensitivities of the states to any action to control and or eliminate cost-shifting and the efforts of local government to achieve a "robust" IGA as outlined above, it is anticipated development of the IGA and negotiations with the states will take longer than local government would prefer. However, if the IGA is to be of any real value it needs to have teeth and produce outcomes to address cost-shifting.

The next meeting on August 4, 2005 of the Local Government Ministerial Council, consisting of local government ministers at the Commonwealth, state and territory levels plus the President of the Australian Local Government Association, Cr Paul Bell, will consider an early draft of the IGA and determine further action.

Prospects are that a useful outcome will be a while incoming!