The Productivity Commission’s landmark 5 year productivity review, Shifting the Dial, released this week, calls for more commitment by State Governments to support proper performance benchmarking for local councils.
While much national attention has focussed on the report’s recommendations surrounding education and health reform, the Commission has also touched on what need to be done at the local government level to lift Australia’s productivity.
The report repeats criticisms of the impact of rate capping and expresses concern about state governments devolving responsibilities to local government without proper planning.
The report’s main message is that the big productivity gains lie in better government services or what it calls “non-market reforms”.