The guidelines address:
- drafting a business plan;
- public consultation; and
- drafting a charter.
policy sets out the basis on which I will make decisions to approve
charters. These documents are available for viewing on the Regional Subsidiaries webpage. I encourage the sector to consider these documents and investigate how a subsidiary might benefit your communities.
local government sector raised concerns about limitations placed on the
operations of regional subsidiaries. In response, I have approved
amendments to the Local Government (Regional Subsidiaries) Regulations 2017 in relation to land transactions.
subsidiary will now be able to conduct land transactions if they are
necessary for pursuing a purpose specified in the subsidiary's charter.
For example, a regional subsidiary will now be able to lease or purchase
premises from which to operate or deliver services. It is anticipated
that these amendments will be in place within three months.
have given consideration to the sector's request to allow regional
subsidiaries to borrow money directly from financial institutions, and
have concluded that the borrowing of money by subsidiaries would create a
level of risk that the regional subsidiary model is not designed to
It would also pose a
significant risk to the participating local governments, since they
would be the guarantors of any loans which their subsidiaries might
become incapable of repaying.
The review of the Local Government Act 1995
will examine other related matters such as local government enterprises
and financial management more generally. The review will be conducted
in two phases with the first consultation paper expected to be released
in November 2017 and the second mid-2018. I encourage all local
governments to actively participate in this review.
you have any queries regarding regional subsidiaries, please contact
Steven Elliott, Senior Legislation Officer, by phone on 61 8 6552 1642 or by
email via email@example.com.
look forward to receiving applications for approval of regional
subsidiaries enabling two or more local governments to deliver services
to their community more effectively or to carry out operations more
Hon David Templeman MLA
Minister for Local Government;
Heritage; Culture and the Arts