The Local Government Amendment (Early Intervention) Act 2013 was assented to and came into force on 25 June 2013.
The purpose of the Act is to allow the Minister for Local Government to issue a performance improvement order or to suspend a council for up to three months, with a possible three-month extension, to address dysfunctional and poor performing councils.
The Act as passed by Parliament is significantly different from the original Bill.
This is as a result of direct consultation with the Minister for Local Government by Local Government NSW after seeking submissions from all councils on the impact of the Bill.
At the request of Local Government NSW, the Bill was amended to provide clarity where certain provisions were unclear.
In particular, the Framework for Implementing Early Intervention Orders has been developed with the assistance of Local Government NSW and importantly now includes:
- The criteria the Minister must consider in deciding whether to issue a performance improvement order.
- The process involved in the decision making.
- The process involved in issuing the relevant order.
- The appointment of relevant advisers or interim administrators.