Local government ... down and out in Canberra

Local government yearns for improved revenue, clearer allocation of powers and independence from excessive state government control.

As one of the key discussion items this week is for "improving engagement of local and federal governments, including constitutional recognition" then local government should expect little. The item should read, "improving relationships with state governments," because it is the states that have the real power over local government. It is with the states that real reform for local government must first happen.

The remainder of the agenda about  infrastructure, housing affordability, community well being, social inclusion and sustainability are issues where local government may have a role, but hardly a dominant one. They are space fillers to make local government feel important.

The real test for Mr Rudd this week is whether he is willing to confront the states not just over their recent mistreatment of local government, but more importantly on the core issue of how local government can be guaranteed greater independence from state interference. Don't hold your breath!
 
Nor should local government expect their long term financial woes to be resolved. They may gain some specific project funding, but federal support is about to become tighter given the rapidly disappearing surplus and competing demands from other interests with greater voter clout.