AUSTRALIAN LOCAL GOVERNMENT ASSOCIATION

Local Government’s Role in Fostering National Productivity and Innovation Mayor Troy Pickard, President Australian Local Government Association 18 May 2016

About ALGA Federation of state and territory local government associations Established in 1947 Municipal Association of Victoria is a member MAV represented by Cr Bill McArthur and Cr Coral Ross Cr Bill McArthur is ALGA’s Senior Vice President Small secretariat based in Canberra

Role of Productivity & Innovation One of the “3 Ps” contributing to growth: Population increases Productivity growth Participation in the workforce Productivity growth has been slower than it should have been in the last decade Maintaining and growing future living standards dependent on higher productivity growth

Productivity on the COAG Agenda New national economic reform agenda to achieve: A stronger more productive economy, Greater fairness and equity, and More efficient and high quality services. Local government needs to respond to and play its part in this national agenda

Local Government’s Role Local Government performs an important role in facilitating and driving productivity and innovation. Major Economic Contributor: Employs more than 187,000 people - 10% public sector Annual operational expenditure in excess of $33b Manages non-financial assets worth more than $354b Enables Productivity and Innovation: Provides infrastructure and services Shapes local regulatory and planning regimes Collects data and could collect more – digital transformation

“Local Government’s Plan for an Innovative and Prosperous Australia” Investment in productive infrastructure in partnership with the Federal Government Developed over the past year Linked to our 2016 Budget Submission Released last month in advance of the election Includes an assessment of the GDP and employment benefits of initiatives ALGA’s 2016 Federal Election Plan

1.Financial Assistance Grants (indexation & quantum) 2.A targeted freight strategy 3.An increase in local roads funding 4.A community infrastructure program 5.Work on climate change Also calling for: Review of municipal funding arrangements for indigenous communities. Adequate funding for human services Better natural disaster funding Legislative or administrative funding certainty Five Key Priority Areas

ALGA’s Plan for an Innovative and Prosperous Australia Financial Assistance Grants - indexation and quantum A targeted freight strategy – to increase freight productivity An increase in local roads funding – to address the backlog Community infrastructure program – to stimulate local economies Work on climate change – to promote adaptation Outlay over three years would be an aggregate of $4.05 billion but would add an additional $7.5 billion to GDP and create 19,300 jobs over the same period.

Advocacy for ALGA’s Election Plan Builds on and is consistent with ALGA’s 2016 Budget Submission Advocacy on budget submission has reinforced our election proposals Election Plan released early and sent to MPs and political parties Already the subject of advocacy with Ministers and backbenchers Councils asked to identify local benefits of proposals June NGA – important part of our advocacy

Productivity through Innovation in the Digital Economy Local Government in a privileged position Collects huge amounts of data Shapes local regulatory and planning regimes Owns or has access to infrastructure to support digital transformation Local Government is a winner from digital disruption

Digital Economy: Data Utilisation of Local Government facilities Transactions with Local Government for services Frequency, level of expenditure, geographic patterns user characteristics, behaviour patterns Data is valuable for improving and better targeting services

Digital Economy: Infrastructure Local Government manages $354b of assets Data collected from ‘The Internet of Things’ provides invaluable infrastructure information Data can be used to better measure infrastructure use and extend asset life Significant potential for LED street lights as technology enablers

Digital Economy: Regulation Presents an opportunity for Local Government to rethink its regulatory environment Capitalise on disruptions and facilitate the evolution of regulatory and compliance regimes Better manage compliance regimes through a more focused risk management approach Work with disruptive industries and design workable regulatory environments

Digital Productivity Exemplars City of Boston (US) apps Street Bump, Trash Day, Flu Shot Mosman Council (NSW) parking technology Singleton Council (NSW) use of unmanned drones Brimbank Council (Vic), transitioning services to be available online

Digital Productivity – Opportunities for Partnerships More dialogue between each sphere of government to develop national solutions Digital transformation should be led nationally Councils require assistance to embrace and transition to digital economy Digital Divide challenges Need to improve digital literacy

Digital Transformation Digital transformation will facilitate innovation and productivity improvements for local government Digital transformation can improve liveability of places and quality of life Local Government wants new ways to collaborate with communities Need to understand more about the ‘costs v benefits’ of digital technology Digital transformation offers the opportunity to improve community outcomes and our productivity

Thank you Any Questions?

AUSTRALIAN LOCAL GOVERNMENT ASSOCIATION