2016 National Infrastructure and Asset Management Conference June 2016

Sometimes…………… we can’t see the wood for the trees.

1. Context Not business as usual LG funding reduction Federal Government: decades of deficits Rate capping Demonstrate efficiency Gain community endorsement Increased scrutiny of LG: reporting Digital Transformation: joined up government: single view of government by citizens: need for interoperability = pressure on Local Government to innovate and collaborate each Council ‘doing its own thing’ will not continue: need for common approach to planning & decision-making

Rate Capping Impact Forecast Max Rate Increase (16/17) (17/18) (18/19) (16/17) (17/18) (18/19) 3.05% 2.85% 2.8% Assumption: Rate increases 5% pa - Rate cap 3.05%, 2.85%, 2.80%, 2.75%.. Impact: Year 4 – 9% reduction Year 10 – 21% reduction PAGE 4 4

Closing the gap LoS B A

New Freight productivity is major national priority Infrastructure Australia: 15 year National Infrastructure Plan (2016) Freight productivity is major national priority First and last kilometre issues are critical Freight: 2010-2016: from low to high focus in LG 2016: election year ALGA election platform: The creation in 2016-17 of a Strategic Regional Roads Program. The permanent doubling of Roads to Recovery funding via continued proportion of fuel excise indexation revenue

Implications for LG LG form regional Road Groups for LRRS Road users determine LoS (user pays) Link mtce and new investment Have autonomy Transparent processes (direct user involvement/input and decision-making) Consistent process to determine priorities Regional road asset registers (ARRB) and condition vs service levels (Not condition of road: have we got the right road?) Road usage data (demand forecasting) Regional HV expenditure plans (consistent) Industry pay for HV access

2016/17 Data Standard for Road Management and Investment in Australia and NZ (developed by Austroads) Regional road data storage (consistent) Councils will be asked by AustRoads to forward LRRS road data on a regional basis by Q1 2017: funding to be available

The new dollars are coming…… ……and it looks like this: Regional priorities identified and ranked by Improvement in freight productivity supported by Industry and logistics users Councils are the asset managers but need to partner with users to make good decisions and win the resources (industry planning, corridor planning). (The old days of silo planning will very soon be gone)