AN incoming state government will press ahead with axing councillors’ discretionary ward funds no matter which major political party wins next month’s state election.
The Times can reveal the Liberal and Labor parties both intend to ban ward grants as part of a wider clampdown on councillors’ conduct across Victoria.
The Local Government Inspectorate investigated the use of ward funds by 32 of the state’s councils last year and found just four councils – Greater Dandenong City Council, Maribyrnong City Council, South Gippsland City Council and Greater Geelong City Council – had “demonstrated accountable practices” when distributing ward funds.
The LGI found insufficient governance around most councils’ ward funds programs meant “fraudulent or corrupt practices by individual councillors, whereby funds may be committed to self-interest groups” could occur.
Frankston Council was named as one of several councils “where the administration of a council’s councillors’ discretionary funds program may give rise to serious breaches of the [Local Government] Act.”
The report noted “[Frankston] councillors have publicly committed funds to sports groups, and advertised this in council publications, just prior to the election period.”
Frankston Council CEO Dennis Hovenden said council revised its ward funds process “as a result of the release of the Inspectorate Report”.
“The amended process requires all discretionary fund allocations to be approved by the full council upon the tabling of an appropriate Notice of Motion by an individual councillor including supporting documentation,” Mr Hovenden said.
“These arrangements are still in place today and the process is both fair and transparent.”
Frankston’s nine councillors are currently able to distribute $135,000 to community groups or individuals each financial year. Each councillor has a discretionary ward funds limit of $15,000.
The Coalition state government moved to ban ward funds as part of a bill to set higher conduct standards for councillors but was unable to pass the legislation before the end of Parliament’s sitting term before next month’s state election.
Labor spokesman for local government Richard Wynne told The Times the opposition agreed with most of the provisions within the legislation but had failed to reach compromise with the state government on some of the detail.
“This legislation has been sitting in the parliament for weeks and we’ve been ready to debate it,” Mr Wynne said.
“It shows how chaotic this government has become that they couldn’t get such an important piece of legislation passed.”
Mr Wynne said Labor would “absolutely” seek to scrap the ward grants program across Victoria if it wins government next month.
“It is vital the use of public funds is transparent,” he said.
Local Government Minister Tim Bull said the Coalition government “is committed to implementing reforms to strengthen council governance and councillor conduct.”
“A re-elected Napthine Government will ensure this Bill is re-introduced and passed as quickly as possible at the beginning of the next term of Parliament,” Mr Bull said.
“The only reason this much-needed reform has not already become law is due to Labor’s obstructionism in the Parliament.”
Mr Wynne said Labor had disagreed on giving mayors the power to throw councillors out of council chambers during debates and removing the right of an individual councillor to abstain from voting on a matter before council.
He said Labor also did not back the Coalition’s push to have an independent person be involved in the selection of council CEOs.
“That’s a matter for councils,” Mr Wynne said.
First published in the Frankston Times
