- Introduction
Background
1.1In February 2021, the Norfolk Island Regional Council (NIRC) was suspended following two external audit reports and responses from the governing body. A public inquiry into the operation of the NIRC was subsequently undertaken, which reported in November 2021.
1.2The public inquiry found that poor decision-making led the NIRC to come very close to running out of money and unable to cover its operational costs. In response, the governing body of the NIRC was dismissed in December 2021 and a NIRC administrator was appointed for three years as part of interim administrative measures. These measures were designed to allow time for the organisation to rectify its governance deficiencies, start rehabilitating its failed asset base, and develop a sound financial position.
1.3The interim arrangements have been met with mixed reactions. While some have acknowledged improvements in local services, the arrangements have not been well received by many Norfolk Island residents.Sections of the community disagree with the overall findings of the public inquiry and have interpreted the administrative measures as an effort to disempower locals, weaken representation, and impose unpopular revenue models. Local community members expressed their disappointment to the Committee, and are disheartened by the lack of democracy on Norfolk Island.
1.4As the period of interim administration approaches its end, the issue of local governance on Norfolk Island remains unresolved. While some progress has been made, Norfolk Island requires a long-term governance solution that does not repeat the issues of the past, re-establishes local democracy, and ensures that any future governing body will be able to support itself in a sustainable way.
Referral of the inquiry
1.5On 7 February 2023, the Minister for Regional Development, Local Government and Territories, the Hon Kristy McBain MP referred an inquiry into local governance on Norfolk Island with a focus on local government models and equitable revenue sources to support the NIRC. A copy of the terms of reference is on page xi.
1.6The Committee was asked to inquire into and report on:
- alternative approaches to property-based taxation that are appropriate to the circumstances and culture of Norfolk Island;
- the categorisation of the NIRC as a ‘rural council’ for the purposes of the Local Government Act 1993 (NSW)(NI), and whether this provides an appropriate level of funding; and
- the current governance model supporting the NIRC and any alternative approaches.
- Upon referring the inquiry, Minister McBain acknowledged that ‘Norfolk Islanders want local democracy returned’ and emphasised two features of a new local governance model—the need for Norfolk Islanders to have a voice in electing their local government and for that local government to be financially sustainable. Specifically, Minister McBain stated:
The Norfolk Island Regional Council, like all local governments, needs to consider and enact revenue raising avenues to support important services such as road maintenance, waste processing and green space management.
1.8The Committee advertised the inquiry via media release on 9 February 2023, and wrote to a range of key stakeholders, particularly the Norfolk Island community, inviting them to make submissions. The Committee offered to meet with anyone publicly or privately either on island or remotely via videoconference to enable as many people to participate in the process as possible.
1.9The inquiry received 43 written submissions including from the Commonwealth Government, the NIRC, local community groups, individuals and Norfolk Island residents. A full list of submissions appears in Appendix A.
1.10The Committee held four public hearings, including four days of hearings and associated site visits on Norfolk Island from 3 to 6 April 2023. The hearings included both public and private proceedings, as well as a session of community statements to allow local residents to have their say on the terms of reference. A full list of hearings and witnesses appears in Appendix B.
Previous Committee reports
1.11In the last two decades, the Committee has tabled three reports into various aspects of Norfolk Island governance arrangements and economy.
1.12In December 2003, the Committee tabled a report which focused on the functioning of the Government and Legislative Assembly. In November 2005, the Committee tabled a report which focused on the financial sustainability of the Norfolk Island Government. In October 2014, the Committee tabled its report on the economic development of Norfolk Island which included a series of recommendations regarding governance arrangements.
1.13The Committee heard that the outcomes of the 2014 inquiry may have affected the willingness of locals to contribute to the current inquiry. This is because some Norfolk Islanders consider the governance recommendations—which ultimately led to the dismissal of the NIRC—fell outside the scope of the 2014 inquiry. As a result, some stakeholders may not have trusted the Committee’s process and were reticent to engage with this inquiry.
Norfolk Island Governance Committee
1.14On 16 December 2022, Minister McBain foreshadowed the establishment of a Norfolk Island Governance Committee to provide community input into service provision and governance matters and provide a platform for collaboration and partnership between Australia and Norfolk Island.
1.15In August 2023, further details were released relating to the structure, elections, draft terms of reference and operating procedures for the Governance Committee.It is expected that the Governance Committee will be composed of six members, including three democratically elected local representatives and three appointed representatives of the Australian and Queensland Governments. It will work to consider the legislative framework, delivery of services, and other matters to modernise Norfolk Island’s governance arrangements.
1.16Elections for the community representatives were held on 11 October 2023, and the first meeting was held on 18 October 2023.
1.17The Committee recognises similarities between this Governance Committee and the Committee’s inquiry, particularly in terms of the examination of options for a new governing body. It is hoped that the findings of this inquiry form part of the consultative and deliberative process as the Governance Committee seeks to find a suitable model of governance for Norfolk Island. The recommendations contained in this report are designed to make a contribution to this process.
Scope and limitations
1.18The scope of this inquiry includes current local governance arrangements for Norfolk Island under the relevant New South Wales legislation, with a focus on whether alternative approaches could more adequately provide for the appropriate level of local representation and decision-making.
1.19Relatedly, the Committee examined revenue collection approaches to support the delivery of local government services as well as those functions provided by the NIRC on behalf of the Commonwealth Government. A key focus of this discussion is the application of property-based taxation or land rates.
1.20One issue that emerged during this inquiry was the limited participation of a broader cross-section of the Norfolk Island community. While the Committee made efforts to ensure all community members were able to engage in the inquiry process, and a few people provided confidential evidence, some stakeholders chose not to participate in the process at all. As a result, the evidence received for this inquiry does not capture the views of all residents of Norfolk Island, particularly those Norfolk Islanders who are not Pitcairn descendants.
Report outline
1.21This report consists of six chapters, including this introduction.
1.22Chapter two provides an overview of the history of Norfolk Island, its relationship to Australia, and the various governance arrangements that have been in place. The chapter sets the scene for the discussion of current and future governance that follows. While the Norfolk Island community is small, it has a deep, rich history which is very much alive and informs many aspects of its current community.
1.23Chapter three examines the operation and dismissal of the Norfolk Island Regional Council and draws some conclusions about steps that can be taken to ensure future efforts to establish a local governing body are not similarly frustrated.
1.24Chapter four discusses the issue of revenue collection, in particular the application of land rates on Norfolk Island. It also considers a range of other revenue raising mechanisms that have been proposed in evidence.
1.25Chapter five relates to future governance on Norfolk Island and examines the proposed models of governance put forward during this inquiry.
1.26Chapter six commences with a discussion of the international context for non-self-governing external island territories. It also introduces a series of principles designed to ensure that any future local governing body attracts local legitimacy, provides for the needs of both Norfolk Island and Australia, and offers a durable and lasting solution to the governance needs of Norfolk Island.
Acknowledgements
1.27The Committee would like to thank everyone for their good faith in contributing to this inquiry, whether they have provided a written submission, appeared at a public hearing, or spoken to the Committee in private. The Committee appreciates the respectful way in which the community on Norfolk Island has engaged with this inquiry on issues which are deeply felt by many in the community.