Improving local government needs better policy advice

Abstract

The decisions made by local government affect all of us. They impact on the air we breathe, the water we drink, the houses we live in, and the roads we drive on. The regulatory role of local government is part of doing business and can have a major impact on a firm’s profitability and growth. In a survey of businesses conducted by the Productivity Commission (2013), 39% of firms reported that regulation by local authorities placed a significant financial burden on their business. Local government regulatory activities therefore have an important effect on local and regional economic growth and, ultimately, national economic growth and community wellbeing. This places a premium on local government organisations having high quality policy advice and decision-making processes in place. Local government’s role in providing and investing in infrastructure is also critically important. Costly decisions taken now can have an important impact for many years to come on individuals and on businesses. This means that local government needs high quality analysis in order to make such investment decisions with confidence that they will deliver sufficient benefits.