Queensland local government amalgamations - What are the planning implications?

By Emma McGrath.

Key Points:
The amalgamations will affect all those who deal with local governments in Queensland, and in particular will have ramifications for planning and development controls and local law application.

The Queensland Government has legislated to implement the recommendations of the independent Local Government Reform Commission by reducing the number of local governments to 73 (from 157). The changes, effective 10 August 2007, will affect all those who deal with local governments in Queensland, and in particular will have ramifications for planning and development controls and local law application. The Brisbane City Council has not been included in the reform process.

Recommendations of the Local Government Reform Commission

On 27 July 2007, the Commission delivered its report on local government reform to the Queensland Government. The Commission recommended that local governments in Queensland be consolidated from 157 local government areas to 73 in order to deliver a stronger local government structure capable of dealing with expanding economic activity that regions across Queensland will experience in the coming decades and to deliver quality environmental outcomes.

Legislation

The Queensland Government adopted the recommendations through the Local Government Reform Implementation Act 2007 (Qld).

Key legislative amendments

The new structural amendments will come into effect on the "changeover day", 15 March 2008.

There will be four categories of local governments under the Act:

• New local governments - a new local government area established by abolishing, in whole or in part, an existing local government area which then becomes part of a new local government area. (Schedule 1A, Part 1 of the Act)
• Adjusted local governments - local government areas which are modified by the inclusion of a new area or an exclusion of an existing area. (Schedule 1A, Part 2 of the Act)
• Continuing local governments - local government areas where the external boundaries are unchanged. (Schedule 1A, Part 3)
• Merging local governments - an existing local government area of which all or part of the local government is abolished to become part of a new local government area. (Chapter 3, Part 1B)

Existing local governments will continue to operate as usual until their changeover day, subject to a number of qualifications. The major qualification is that a merging local government that does not become an adjusted local government must not make a "major policy decision" in the period from 10 August 2007 until the day before the start of the "caretaker period" (which will commence when the election period commences). A "major policy decision" is a decision about the appointment, remuneration or termination of a chief executive officer or a decision to enter into a contract with a non-government entity with a total value greater than $150,000 or 1 percent of the local government's net rate and utility charges for the most recently adopted annual report (section 159YD of the Act).

New local governments are required to do all things necessary to establish a Local Transition Committee ("LTC") to manage the transition. LTCs are to comprise two councillors from each merging local government, up to three union representatives and the interim chief executive officer. The key functions of LTCs include approving interim organisational structures and overseeing the preparation of transition action plans. Further, LTCs are required to act in the public interest of the new local government for which they are established. The State Government has published guidelines in relation to LTCs.

Implications

There are no specific legislative amendments in relation to the continuation of contracts currently in force with affected local governments, including infrastructure agreements. We understand that the Department of Local Government and Planning is currently in the process of clarifying the position in regards to the continuation of contracts. We have been advised that contracts are intended to continue to have force with the new local governments unless the contract has been frustrated in some way, for example by a supplier not being able to supply all of the new local government area with goods.

It should, however, be noted that the "major policy decision" embargo may impact on key planning and development decisions, including decisions to contract, throughout the State until the March 2008 elections. Further advice may need to be obtained by private entities that intend to contract with local governments during the embargo period to determine whether the relevant contract can be entered into.

The Commission also recommended that current planning schemes will continue to apply as a transitional planning scheme until such time it is reviewed and consolidated into a new planning scheme. There are no specific amendments in regards to the effect on planning schemes for the affected local government areas. As such, the current planning schemes for merging and adjusted local government areas will still have force during a transitional phase, before a planning scheme is reviewed and enacted consolidating the current planning schemes. It is anticipated that the new consolidated planning schemes will come into force when a review of any of the current planning schemes is triggered under section 2.2.1 of the Integrated Planning Act 1997 (Qld), which requires planning schemes to be reviewed every eight years.

While transitional arrangements are in place, uncertainty may arise in the affected local governments in regards to planning arrangements and development applications as councils may be administering a number of different planning schemes during this period.

Local laws will also continue to have force during the initial transitional phase. Once again, it is anticipated that these will be reviewed when the legislative review process for local laws commences on 1 January 2008. This review phase is legislated to end on 31 October 2010, by which time local laws for the merging and adjusted local areas should be consolidated.

For further information, please contact John Ware .