On 12 April 2024 the Government published its response to the Joint Standing Committee on the National Capital and External Territories’ (JSCNCET) report on Norfolk Island (NI) governance, Restoring Democracy. The Commonwealth Minister responsible for Territories, Kristy McBain, instigated this inquiry in February 2023, to examine appropriate local government models for NI, including equitable revenue sources. The report contained 7 recommendations, including establishment of a viable new democratically elected governing body. This Flagpost provides an overview of the historical context and recent measures for NI governance reform.

The Norfolk Island Regional Council

Under the Norfolk Island Act 1979, NI had a limited form of self-government with its own Parliament. However, the Norfolk Island Legislation Amendment Act 2015 and Territories Legislation Amendment Act 2016 empowered the Commonwealth with NI administration, including responsibility for all government service delivery. In addition, the jurisdiction of Commonwealth legislation was extended to NI in several tranches. The NI Legislative Assembly was abolished and elections were held for the Norfolk Island Regional Council (NIRC), which started operation from 1 July 2016.

The NIRC operated under the Local Government Act 1993 (NSW) (NI), with the Commonwealth and NSW governments agreeing to deliver NI’s education, health and local government services. Since 2020 however, serious problems have been identified with the NIRC’s performance and financial sustainability:

• Due to its financial position, the NIRC requested a delay to its scheduled September 2020 election. In February 2021 the election was postponed a further 12 months because the NIRC was the subject of a public inquiry.
• In June 2020 the NIRC requested a full independent governance and financial audit of its operations. The Commonwealth engaged independent auditors Grassroots Connections and Nexia Australia, whose reports raised concerns with the NIRC’s financial management.
• Following the findings and recommendations of the independent audits, in December 2020 the Commonwealth issued a notice of intention to suspend the NIRC for 3 months, with Michael Colreavy appointed as interim administrator. This became effective on 3 February 2021, was extended in July 2021 and is due to expire in December 2024.
• The Commonwealth also announced a Public Inquiry into the NIRC, led by Carolyn McNally. The inquiry’s final report, published in November 2021, identified significant instances where the NIRC failed to adhere to effective financial and asset management principles.
• In response to these findings, in December 2021 the Commonwealth dismissed the NIRC’s elected members and appointed Michael Colreavy as administrator for 3 years.

Unrelated to these performance issues, in October 2021 an Intergovernmental Agreement with the Commonwealth saw Queensland take over NI service delivery responsibilities from 1 January 2022.

The Norfolk Island Governance Committee

In August 2023 the Australian Government established the Norfolk Island Governance Committee (NIGC), which commenced meeting 2 months later. This committee comprises 3 elected community representatives, the NI administrator, and a Commonwealth and Queensland government representative, respectively. The NIGC’s terms of reference include facilitating discussion with the NI community on relevant issues until a locally elected governance body is reinstated. On 6 December 2023, the NIGC agreed to a provisional plan to deliver a new governance model including six foundational elements. Although the JSCNCET report recommended elections for new governing body positions occur before December 2024, the NIGC has acknowledged this timeframe may not be feasible.

The report also recommended NI’s final governance model be endorsed through a compulsory vote of locally registered voters, with the NGIC given a formal advisory role. Norfolk Islanders have been vocal about wanting local democracy returned, including electoral participation delivering an effective and financially sustainable local government. In acknowledging this in their report’s title (‘Restoring Democracy’), the JSCNCET further emphasised that:

The NIGC has a complex task to develop a model acceptable to the Commonwealth, State and Norfolk Islanders.  A key focus in developing this model will be the need for NI to be financially sustainable.