A PUBLIC database which compares spending between councils is one of nine recommendations for reducing local government spending, according to an independent report.
The South Australian Productivity Commission’s inquiry into local government costs and efficiencies was released last Wednesday and outlined ways for council rates to be lowered for the state’s landowners.
The report named nine recommendations for the State Government and 10 for local government to help drive down costs and lessen the burden on ratepayers.
One recommendation was a website which published key financial information which would allow the public to compare spending in specific areas, like waste management or community events, with other councils.
The practice, known as benchmarking, is already used by Charles Sturt, Marion and Port Adelaide and Enfield councils, and local government minister Stephan Knoll said the report found it to be an effective measure.
“If ratepayers can compare and understand how different councils are performing with delivering key services and keeping their costs down, they can effectively engage with their councils on their most important decisions,” he said.
“The report notes that benchmarking has resulted in cost savings and capacity improvements of 11-22 per cent in these council areas.
“The Productivity Commission’s report confirms there is a way forward to reduce council rates for South Australian households and businesses.”
The State Government attempted in 2018 to push rate capping legislation through parliament, but it was blocked in the upper house by Labor, SA-Best and the Greens.
Rate capping was also unpopular with local councils, including Gawler.
However, Gawler Mayor Karen Redman told The Bunyip benchmarking may be a “useful tool” for councils.
“Benchmarking with like-for-like councils can be a useful tool for measuring performance, identify areas of improvement and assist in creating efficiencies and effectiveness outcomes,” she said.
“However, differences between councils would need to be considered before any meaningful and tangible benchmarking outcomes could be determined.”
The State Government is expected to officially respond to the Productivity Commission’s report in the coming weeks.