20th June -Second reading: Jeanette Powell
Mrs POWELL (Minister for Local Government) —
I move:
That this bill be now read a second time.
The Local Government Legislation Amendment (Miscellaneous) Bill 2012 will make a variety of amendments to local government legislation to improve the operation of councils. It includes amendments to the Local Government Act 1989, the City of Melbourne Act 2001 and the Victorian Civil and Administrative Tribunal Act 1998.
Amendments to the Local Government Act will improve the conduct of council meetings and clarify decision-making processes. This includes inserting a clear statement in the Local Government Act about the way council decisions may be made. Council decisions may only be made in a properly constituted council meeting or, if council has delegated its decision-making power to a committee or officer, by that committee or officer.
A council decision must not be made in an assembly of councillors, such as in an advisory committee or in a councillor briefing.
The bill will remove an unenforceable provision that makes it compulsory for all councillors in a council meeting to vote. This will be replaced by a provision specifying that a majority of the councillors in the meeting must vote in favour of a motion before the motion can pass. This will allow a councillor to abstain from voting in a meeting, but the abstention will not alter the number of votes required for the motion to pass.
A councillor who has left the meeting because of a conflict of interest, or who is otherwise absent, is not counted as either having voted or as an abstention for the purpose of this provision.
The bill also includes some specific procedural improvements for conflicts of interest. These include allowing a councillor with conflicts of interest in sequential items before council to make all his or her disclosures before the first item, rather than having to re-enter the meeting to disclose for each one. A councillor who has a conflict of interest in an item in the council plan will be able to vote on the final council plan if, and only if, council has previously voted to include that item in the plan and the councillor disclosed the conflict of interest when the previous vote was taken. It is important that all councillors are able to participate in approving the council plan.
Some amendments deal with processes to be followed when dealing with alleged misconduct. New provisions will allow the appointment of a probity auditor, at the discretion of the Secretary of the Department of Planning and Community Development.
A probity auditor may only be requested by a chief executive officer or a mayor. A council does not require the ability to request a probity auditor, as it has the power to appoint a probity auditor at its own discretion. The role of a probity auditor would be to monitor internal council processes where there has been a formal complaint of bullying, victimisation or harassment against the chief executive officer. The probity auditor may also provide advice to the council.
A probity auditor’s area of interest will be limited to council processes in relation to the complaint. He or she will not deal with the substance of the complaint, which will continue to be subject to any relevant judicial, administrative or contractual arrangements. At the conclusion of an audit, the probity auditor will provide a report to the council, the mayor, the chief executive officer and the secretary.
In regard to councillor conduct matters, an amendment to the VCAT act will help clarify some issues in councillor conduct hearings. An existing provision, which requires the council to pay the costs of individual councillors in a VCAT hearing, will be limited to situations where the council is the applicant in VCAT or where the council voluntarily becomes a party to the matter.
The purpose of this amendment is to remove a possible inducement for individual councillors to apply for their councillor conduct panel matter to be referred to VCAT so that council will have to pay their legal costs. It will retain the protection for an individual councillor when the council has initiated action against him or her in VCAT.
The members of a councillor conduct panel are required to be parties to any application to VCAT when there has been an application for a review of the panel decision. The bill will extend the term of office of panel members to the end of any such VCAT hearing. This is to ensure that panel members continue to be subject to immunity under the Local Government Act and they continue to be paid by the council.
A significant amendment in the bill will require each chief executive officer to publish a summary of election campaign donations, disclosed by candidates in the council’s elections, on the council’s website. This will include the name of each donor and the value of the donations made by each donor. The bill will remove a provision making it an offence to defame a candidate in a council election. This is an inappropriate and ineffective provision. Defamation is treated as a civil matter in state and federal elections and should be the same in local government elections.
The bill will alter the meeting requirements for regional library boards. Currently regional library boards must comply with meeting requirements that apply to councils, which imposes some unnecessary burdens. The bill will allow members of a library board to attend meetings by electronic means, subject to approval of its local law by the member councils.
Significant reforms are proposed to legislation relating to the levying of differential rates. This is in response to a recent trend for councils to use differential rates in ways that discriminate against particular industries or businesses by imposing artificially high rates on them. The bill includes a head of power for the minister to issue guidelines on the appropriate uses of differential rates. Councils will be required to have regard to the guidelines when setting differential rates. If the minister considers that the imposition of a differential rate will be inconsistent with the guidelines, he or she will be able to seek an order in council to prevent the levying of a differential rate in respect of the particular type or class of land. The bill will require councils to publish details of differential rates on the internet as well as increasing, from 30 to 60 days, the time allowed for a person to seek a review in VCAT about the way their land has been classified for differential rating.
An amendment is also proposed to the way penalty interest is calculated on unpaid rates and charges. In future, penalty interest will only be payable from the date when each quarterly instalment is due. This will apply even when a council allows payment in a lump sum. If a lump sum is not paid on time, penalty interest will be calculated as if the rates were being paid in instalments.
The bill includes a number of administrative changes. Members of council audit committees, who can have access to confidential and sensitive information, will be required to lodge regular returns in which they disclose their interests. An obsolete provision, preserving long service leave rights in a way that is inconsistent with the Charter of Human Rights and Responsibilities Act 2006, will be repealed.
Provisions allowing councils to dispose of unregistered and abandoned vehicles will be amended to mirror provisions in the Road Management Act 2004, applying to VicRoads. This will include having to take reasonable steps to notify a vehicle’s owner before disposing of the vehicle.
As titled, this bill will make a number of miscellaneous amendments to local government legislation. Some of these amendments are quite significant and the bill will substantially improve the administration of local government in Victoria.
I commend the bill to the house.