Improvement and Intervention
The Office is active in providing a range of improvement information and advice to guide local councils. However, there are circumstances where the Office may need to intervene where councils are experiencing difficulties in meeting their legislated obligations or otherwise experiencing a breakdown in performing their functions efficiently and effectively that requires outside assistance to remedy.
The Office aims to intervene early when councils are experiencing problems and, in the first instance, will encourage councils to meet their obligations. Any intervention or improvement response will be proportionate to the circumstances. For example, an improvement strategy may be appropriate where the target is all councils in NSW; an intervention strategy may be appropriate where an individual council is experiencing severe difficulties such as a breakdown in relationships.
“Improvement and intervention” is defined in broad terms to include:
- strategies that assist councils to meet good practice,
- strategies to ensure councils comply with relevant legislation and standards, and
- strategies that use available sanctions that force councils to comply with relevant legislation and standards.
“Improvement and intervention” is also defined in broad terms to include strategies with an impact on the local government sector, to strategies with an impact on individuals within the sector.
The Improvement and Intervention Framework supports the Office’s goals of being a leader on Local Government matters for New South Wales; continuous improvement in council governance practices; all councils manage their finances responsibly; and Office resources are optimised.
Links
Improvement and Intervention Framework in relation to NSW Councils – PDF
Investigations
A key role of the Office of Local Government is to investigate serious breakdowns in council operations. We have two ways of doing this under the Local Government Act – section 430 investigations and section 438U public inquiries.
Under section 430, the Deputy Secretary, Local Government, Planning and Policy has the power to carry out investigations into council operations. Investigations can be general or in respect of a particular matter. This power is generally only used if a council’s conduct is having a serious impact on the local community.
Links
Public Inquiries
A key role of the Office of Local Government is to investigate serious breakdowns in council operations. We have two ways of doing this under the Local Government Act – section 430 investigations and section 438U public inquiries.
Under section 438U, the Minister for Local Government has the power to appoint a commissioner to conduct a public inquiry into a council. This is a necessary step before a council can be dismissed. The Minister may order an inquiry at any time or as a result of a section 430 investigation.
Public inquiries are essential if a council becomes dysfunctional through maladministration, corruption or some other reason. After the inquiry process, the Minister may appoint an administrator.
Links
Councillor Misconduct
Most code of conduct breaches are dealt with by councils. However, the misconduct provisions of the Local Government Act 1993 allow the Office of Local Government to also investigate code of conduct breaches. Councils must refer complaints about some types of breaches to the Office for action. Councils may also refer serious misconduct to the Office for a stronger penalty after it has been dealt with under the council’s code of conduct.
Links
Information about Councillor Misconduct
Framework for managing councillor misconduct allegations (2013) – PDF
Deputy Secretary Decisions (Orders and Statements of Reasons)
NCAT Decisions (Orders and Reasons for Decision)
Pecuniary Interest and Disciplinary Tribunal – Decisions and Orders
Public Interest Disclosure
The fundamentals of the new PID Act
Information to assist councils, councillors and other public officials to understand the Public Interest Disclosures Act 2022 (PID Act).
The Secretary of the Department of Planning Housing and Infrastructure is defined under the PID Act as an ‘integrity agency’ for the purposes of exercising certain functions under the Local Government Act 1993 (LG Act). This means that they can accept reports from public officials about wrongdoing and act where those reports relate to local government.
The Secretary has delegated their powers as an integrity agency to officers in the Office of Local Government (OLG). This means that OLG can accept and deal with certain complaints on the Secretary’s behalf.
It is important to remember that council officials can make a report of serious wrongdoing to their own council. In some circumstances, this will be most appropriate way of having the concerns addressed.
OLG has a published a policy that sets out how it will deal with reports of serious wrongdoing from council officials. Council officials who are considering making a report of serious wrongdoing are encouraged to read the policy.
This policy emphasises the importance of providing support to, and protections for, public officials within the local government sector who report serious wrongdoing in accordance with the requirements of the PID Act. This includes:
- creating a climate of trust, where public officials are comfortable and feel supported to report wrongdoing
- keeping the identity of the public official disclosing the serious wrongdoing confidential, where this is possible and appropriate
- protecting public officials from any detrimental action resulting from making a report of serious wrongdoing
- dealing with reports of serious wrongdoing in a prompt, thorough and impartial way, and taking appropriate action if some form of serious wrongdoing has been found
- keeping public officials who make reports of serious wrongdoing informed of their progress and the outcome