Local Government Inquiry - LGI (Percy Allan Report)
The Independent Inquiry into the Financial Sustainability of Local Government in NSW (Local Government Inquiry) was undertaken by a panel chaired by Professor Percy Allan. It was commissioned by the Local Government and Shires Associations of NSW (LGSA) in September 2005 in response to the widespread concerns about Local Government's financial capacity to meet the growing demand for infrastructure and services. The inquiry was conducted from 21 September 2005 to 30 April 2006.
Inquiry panel members
An independent panel of three persons highly experienced in public policy making, who were completely autonomous of local government or its Associations, undertook the inquiry. The panel members were:
- Percy Allan AM (Chair & Research Director)
Public finance and management consultant
Former head of NSW Treasury - Libby Darlison
Social policy and change consultant - Diana Gibbs
Management and economic development consultant
Objectives of the inquiry
The formal terms of reference oblige the inquiry to investigate five major aspects of Local Government in NSW:
- the current financial position and performance.
- the adequacy of existing infrastructure.
- the adequacy of service delivery.
- the financial capacity of local government.
- the administrative capacity of local government.
With respect to these aspects, the inquiry examined what Local Government must do to meet
- statutory obligation and independent standards,
- community, State, and Commonwealth Government expectations of its role and functions, and
- emerging challenges posed by demographic, economic, social, environmental, technical and governance
changes.
The Inquiry then considered potential measures of improvement or reform that could address any problems identified and formulated recommendations.
Inquiry outcomes
The inquiry produced three public documents:
Background and Issues Paper (314KB) presented on 22 October 2005;
Interim Report: Findings and Options (1.71MB) presented on 3 March 2006; and
Final Report: Findings and Recommendations (Percy Allan Report) (1.51MB) presented on 3 May 2006.
The LGSA provide the opportunity to purchase hardcopies of the inquiry's final report. Hardcopies can be ordered from the LGSA website by clicking here: Publications to order.
The inquiry commissioned more than 30 research papers and reports dealing with various issues affecting Local Government, including the role of Local Government, Local Government finance and financial assistance, revenue and expenditure, cost shifting, infrastructure condition and management, but also interstate comparison, performance measurement, council governance and management structures or land use planning.
Reports and papers are avialable as Volume 2 of the Final Report.
The inquiry received 109 submissions to its Background and Issues Paper and 69 responses to its Interim Report: Findings and Options. Submissions and responses came from councils and ROCs as well as other stakeholders including government agencies, professional associations, environmental groups, community groups, unions and interested members of the public.


