Local Government Bill: Contracts for CEO's and Senior Executives Now Optional

Debate on the Local Government package of Bills. i.e.

Local Government Bill 1999,
Local Government (Elections) Bill 1999,
Statutes Repeal and Amendment Bill (Local Government) 1999

took place in the Legislative Council over two weeks: from 27 July to 5 August 1999. For ease of reference on the Democrats web site the debates have been separated into individual pages, each page containing an edited transcript of only one aspect of the total package.

This page covers only the Democrats amendment which gives Council flexibility to decide for themselves whether CEOs and senior executives will be on contract, or not. For an index of other topics covered in the Local Government Bills, see the Democrats Local Government page, or the 1999 Budget Session Index

The Hon. IAN GILFILLAN: I believe that we should remove the injunction on a council that CEOs must be employed on contract. Many of them obviously will be, but we feel that it is inappropriate that that should be spelt out in this Act as a compulsion on a council. We believe that it should be the choice of the council as to how it employs its chief executive officer.

The Hon. DIANA LAIDLAW: The Government believes that it is important to include in this Bill the terms and conditions of appointment for a chief executive officer. Specifically, clause 96 provides for the terms and conditions of appointment of CEOs to councils, including a fixed term not exceeding five years, and there must be a performance-based contract. The requirement for contracts is expected to make some difference to the adherence to appropriate public service management practice and, over time, help councils to strengthen their administrative arrangements, performance agreements and management generally. The current appointments are protected, and we believe that this provision reflects good practice in the current Act and should be extended to future arrangements.

The Hon. T.G. CAMERON: It is my understanding that the current Act provides the flexibility for councils to employ CEOs under fixed term performance-based contracts for up to five years. In discussions I have had with the Local Government Association, and perhaps up to 20 country councils, it was put to me, particularly by the country councils, that they wished to retain that flexibility. What is appropriate for big city councils, such as the Marion Council or the Port Adelaide Enfield Council, when they go out searching for a CEO is quite different from what applies in the country. It was put to me by a number of country councils that they preferred to retain the flexibility of being able to employ people under the current conditions of the Act under which they operate. However, I suspect that, over a period of time, more and more councils will move to fixed term performance-based contracts. But in view of the request that was made to me by those country councils, I will be voting against the Government's position.

These three amendments are consequential on the successful outcome of that last amendment. It is a question of wording. So what would have been `the contract', because it would have been obligatory, becomes more general so that it covers any contract, if in fact a contract is entered into. I do not intend to go any further into that unless members have questions.

The Hon. T.G. ROBERTS: The Labor Party indicates that it has a similar position to the Democrats. We will not proceed with our amendments but instead support their position.

The Hon. DIANA LAIDLAW: I accept that they are consequential on the earlier vote which I lost on clause 96.

The Hon. IAN GILFILLAN: I argued similarly with the previous amendment that there should not be this compulsion in the legislation regarding how councils employ their senior executive officers, which is dealt with in this clause. It provides that a senior executive officer must be employed under a contract. We believe that it should be at the choice and decision of the council, and therefore I oppose the clause.

The Hon. DIANA LAIDLAW: The Government would argue strongly for the retention of this provision. This Bill essentially has come about after some considerable consultation with a wide range of councils in differing stages of amalgamation and growth performance relating to the range of councils and the tasks, budgets and the like, and it was considered that it was important not only to retain provisions in terms of the contracts for chief executive officers but also for senior executive officers. I am not sure how SA First and others will vote on this. Certainly they did not accept my arguments for chief executive officers, but they may think that they are valid for senior executive officers.

The Hon. T.G. CAMERON: Does the Government's Bill make it mandatory for the councils to provide fixed term performance based contracts for employees who receive remuneration exceeding $100 000 a year, or does it merely give them the option of doing that?

	Extract from Hansard Legislative Council 29 July 1999

Ian Gilfillan Australian Democrats Member of the Legislative Council		Parliament Index 1999 Budget Session Index Browse by Subject About the SA Parliament Hansard on line