The Hon. H.J. GUMBYS (16:30): The people of Coober Pedy have been without an elected council since January 2019. That is a long time for any community to wait to choose its own local representatives: they deserve a credible path back to elected local government, with a council capable of managing its responsibilities and sustaining the services they depend upon. That is the task before us in considering the Local Government (Transition Out of Administration) Amendment Bill 2026. To understand why this legislation is necessary, we need to look at what a return from administration would actually involve.
The Coober Pedy council has responsibilities that are unique among South Australian councils. Alongside municipal services, it has been responsible for the town's water and electricity services. For a small remote council, those responsibilities bring substantial financial and operational pressures. They also mean that decisions about the council's future are inseparable from decisions about essential services. The consequences reach into every household and business in the town.
The council entered administration following serious findings about its management of a power purchasing agreement and significant deficiencies in financial governance. Those findings established the need for intervention. The challenge since then has been to resolve the underlying problem sufficiently to give a future council a sound basis on which to govern. Progress has been made, but important work remains unfinished.
The administrators appointed since March 2023 have improved the council's financial performance and stabilised its cash position. That has involved around $1 million a year in operational savings, alongside increases in rates. Residents have therefore carried part of the cost of putting the council on a more sustainable footing. That should be acknowledged. The government has also committed $250,000 to support a review of municipal services and the development of a credible asset management plan.
That work is necessary because a future council must understand what its services cost, what condition its assets are in and how their maintenance and replacement will be funded. An elected body needs reliable information to make responsible decisions on behalf of its community. However, financial planning alone cannot resolve the pressures created by the council's essential services responsibilities.
The planned transfer of the water service to SA Water is a significant part of the solution. The existing water assets require investment, and transferring the service is intended to support improvements to the system and relieve the council of a responsibility it has struggled to sustain. The future arrangements for electricity also require resolution. The government already provides around $5 million annually through the Remote Areas Energy Supply Scheme to support electricity retail services in Coober Pedy.
Even with that assistance, unpaid electricity accounts and debts to the power generator remain substantial challenges. These matters affect the council's wider finances, because revenue from its essential services has also supported municipal services. Changing who provides water and electricity therefore requires careful work on the budget of the council that remains. This explains why the timing of the transition matters. Under the current arrangements, administration must end at the conclusion of the April 2027 local government elections.
The administrator's advice is that essential service matters should be resolved as far as possible before a new council takes responsibility. There is also sound reason for the administrators to complete the 2027-28 annual business plan and budget following the transfer of essential services. That would allow the future council to begin with a budget reflecting its changed responsibilities as a municipal council. The bill makes that coordinated transition possible. It removes the requirement for administration to end automatically with the April 2027 elections and allows the end date to be specified by the Governor on the minister's recommendation. It also provides that the Coober Pedy periodic election schedule for April 2027 will not proceed.
Postponing an election is a serious decision. Supporting this bill requires us to explain why further time is needed and what that time is intended to achieve. In this case, the purpose is to complete structural changes that will determine whether the next council can operate sustainably. The community's views must remain central to that work. During Minister Pearce's visit in July, she met with local businesses and community organisations, Aboriginal organisations and council staff. Members of the community expressed concern about an immediate return to a fully elected council, and a hybrid model involving elected and appointed members was among the options raised.
That does not mean every resident holds the same view or that a final model has been settled. It does, however, show why the transition needs to be developed within the community and be informed by local circumstances. The bill provides flexibility to put transitional arrangements in place. The proclamation may determine the number of council members and which positions are elected or appointed. It may also provide for a financial controller to authorise specified decisions, including the adoption of an annual business plan or long-term financial plan.
These arrangements could allow local representation to resume with additional financial oversight during the transition. The bill also allows approval requirements for the appointment or removal of key people, including the chief executive officer, auditor and audit and risk committee members. Those positions support the council's governance and financial accountability. Protecting their proper operation is relevant to ensuring that improvements made during administration endure. The powers proposed are substantial and parliament should consider them on that basis. They allow specified legislative provisions to be varied or suspended in relation to Coober Pedy.
Their use must be reasonably necessary to support the council's transition out of administration or its effective operation during the transition period. The proclamation must be made by the Governor on the minister's recommendation. The minister must then report the circumstances giving rise to it in both houses within five sitting days. The transitional proclamation will also cease at the conclusion of the third periodic election due after it commences, unless repealed sooner. Those requirements provide boundaries and public accountability for the use of the powers.
The people who eventually nominate for this council will be accepting a considerable responsibility. They should inherit clear financial information, manageable service responsibilities and arrangements that support sound decisions. The work authorised by this bill must be directed towards that outcome. Coober Pedy deserves a functioning elected council with the capacity to serve its community over the long term. I support this bill as a means of getting there, and I commend it to the council.