This report has been prepared as a component of the next phase of the Rural-Remote and Indigenous Local Government Program of the Australian Centre of Excellence for Local Government (ACELG). The aim of the overall strategy is to identify key steps in building the capacity of small rural-remote and Indigenous councils across Australia – and especially in the north – to deliver adequate and appropriate local government services to their communities.

The strategy report presented in March 2011 noted that the current demands and expectations placed on rural-remote and Indigenous local government are unsustainable, especially if they are permitted to grow unchecked. It was considered that, if these councils are to have the capacity to deliver an acceptable scope and standard of services to their communities in the long term, there needs to be a better fit between the funding and resources available and the expectations placed on them.

The strategy noted in relation to the need for further investigation of the role and expectations of rural-remote and Indigenous local government that:-

• The underlying capacity of rural-remote and Indigenous local governments involves two related issues – the impact of government policies, including the withdrawal of some local services by government agencies; and community expectations.

• Rural-remote councils are commonly expected to provide a greater range of services than their regional and urban counterparts. More so, Indigenous councils often carry the burden of administering social programs and operating essential services and enterprises that would otherwise be the responsibility of government agencies, non-government organisations or the private sector.

• Rural-remote and Indigenous local government has often assumed a ‘provider of last resort’ role in order to ensure the sustainability of small communities. Councils are typically the central institution within those communities and so are expected to fill the gap when services are not adequately provided by the usual mainstream providers.

• The progressive retreat of government agencies to major towns not only limits local resident access to services, but can also prove detrimental to normal local government operations. When councils step in to fill the gap it takes their focus away from ‘core business’ and stretches their capacity to deliver municipal services.

• There has been a history of councils accepting additional responsibilities on the basis of substantial grant funding, only to see that funding withdrawn or reduced down the track. Councils have thus become very wary of state and federal governments.

This report is intended as the first stage of a project to build capacity in relation to the role and expectations of rural-remote and Indigenous councils. This project is focused on what constitutes a sustainable model of rural-remote and Indigenous local government and what is needed to achieve this.