2 September 2008

The NSW Electoral Commission (NSWEC) today published the findings of an independent report into the methodology it used to set the costs of the 2008 local government elections.

The Review of Local Government Election Pricing, conducted by independent auditors Walter Turnbull, found that the accounting systems employed by the NSWEC to capture and apportion costs were “fair and equitable”.

The audit examined whether:

1. All relevant projects associated with the elections have been captured in the model and that only relevant projects have been included

2. Appropriate cost drivers have been used in the model; and

3. Charges are sufficient to recover costs (pg.1)

The report concluded that the NSWEC correctly captured all the associated costs and apportioned them fairly (pg 2). It noted that the Activity-Based Costing (ABC) model used at the 2007 State Election has been adjusted to remove activities that are not relevant for a local government election (pg.6).  

“The Local Government and Shires Association has falsely claimed that these elections are a profit-making venture. This report endorses our method of establishing and recovering the true cost of these elections,” said NSW Electoral Commissioner Colin Barry.

The review also found that more than $7m was not being recovered from local councils, including capital equipment provided from the 2007 State General Election; roll maintenance costs paid annually to the Commonwealth; and development costs for an Election Management system that helps collate results (pg 7 ).

“This should put an end to claims of cost shifting by the LGSA. Voters can have every confidence that the NSWEC will continue to improve the transparency of local government elections by removing the hidden costs and providing councils with a budget that reflects the cost of delivering professional electoral services to 4.5 million voters across NSW.

“The findings are in line with statements by the Premier in a letter to the LGSA on 13 August that the NSWEC is improving transparency and bringing electoral procedures into line with the high standards employed at State or Federal elections and would not be referring the matter to the Independent Pricing and Regulatory Tribunal for review.”

In the Sunday Telegraph on August 17, the LGSA was quoted as saying it “had no issue with the Electoral Commission wanting to run council elections like state and federal elections.”

“I am pleased that the LGSA is supporting the view that the NSWEC should conduct the elections to the same standard as the other tiers of government. This is a view the NSWEC has always held.

“Local government elections are important to communities across NSW and conducting them at arm’s length of councils promotes transparency and increases public confidence in the democratic processes that govern the election of our political representatives at every level,” Mr Barry said.

Review of Local Government Election Pricing
(PDF)[176kb]

Assurance Certificate
(PDF)[52kb]

Media Contact: Adrian Kerr, Corporate Communications

(02) 9290 5954  adrian.kerr@elections.nsw.gov.au