Major policy decisions during the special caretaker period for new local governments

Application to the Minister

Under Part 2A of the Local Government Regulation 2008, the caretaker provisions of the Local Government Act 1993, s441C, 441D and 441E apply to new local governments for an extended period while the Council is constituted by its Chief Executive Officer (CEO). This additional caretaker period commences on changeover day (15 March 2008) and will finish at the end of the day that is the conclusion of the last 2008 quadrennial election for the new local government.

New local governments are prohibited from making major policy decisions during this additional caretaker period. A major policy decision is defined in s441C the Local Government Act 1993 as:

  • A decision to appoint a CEO
  • A decision about the remuneration of a CEO
  • A decision to terminate the employment of a CEO
  • A decision to enter into a contract that has a total value of $150,000 (note the regulation has modified the original provision to remove the part that provides for the option of 1% of the net rates and utility charges (whichever is the greater).

For a new local government, the major policy decision definition has been extended to include any of the following:

  1. a permanent appointment to the organisational structure of the new local government
  2. a temporary appointment to the executive organisational structure of the new local government for a period of more than one month
  3. the remuneration of any member of the staff of the new local government
  4. the entering into of a contract of employment between the new local government and another person
  5. the termination of the employment of any member of staff of the new local government
  6. the corporate structure of the new local government
  7. the amendment of a budget that under section 31 (1) is taken to have been adopted by the new local government.

It is important to note that the Act further provides that any major policy decision made by a CEO (constituted as Council) in the additional caretaker period is invalid unless the Minister’s approval has been obtained prior to the decision.