Additional comments – Mr
  Mark Coulton MP and Mrs Jane Prentice MP
The Coalition has committed to support the appropriate
  financial recognition of local government in the Australian Constitution.
There have been significant concerns as outlined in the Dissenting
  Report regarding the Federal Government’s failure to adequately fund and plan
  the referendum in line with the preconditions set out by Australian Local
  Government Association (ALGA).
The Government formed the Expert Panel on Constitutional Recognition
  of Local Government (‘the Expert Panel’) to identify options for the
  constitutional recognition of local government and to report on the level of
  support for such recognition among stakeholders and in the general community.
The Expert Panel’s final report stated that:
The majority of panel members support a referendum
  in 2013 subject to two conditions: first, that the Commonwealth negotiate with
  the States to achieve their support for the financial recognition option; and
  second, that the Commonwealth adopt steps suggested by ALGA necessary to
  achieve informed and positive public engagement with the issue, as set out in
  the section of this report on the concerns about a failed referendum (see page
  16). Steps include allocating substantial resources to a major public awareness
  campaign and making changes to the referendum process.[1]
As such, the Expert Panel was supportive of a 2013
referendum on financial recognition of local government through a change to
section 96 of the Constitution, provided two conditions were met.  The first
condition was negotiation with the States to achieve their support for the
Government's proposed question and secondly, to take steps as recommended by
ALGA to achieve informed and positive public engagement with the issue.
At the first hearing of this Committee, reservations were
  expressed by ALGA with regard to timing, were a referendum to be held in
  conjunction with the 2013 general election. They noted that they did not
  consider the question should be put to the people before a number of
  preconditions had been met. As of March, three of ALGA’s preconditions have not
  been met, an extremely concerning fact considering the Federal Government has
  had over two years to deal with the issues. Two of these preconditions are laid
  out in the Coalition’s first Dissenting Report.
The first precondition is the general support of the states. In the view of Coalition members, the recommendation by the Expert
  Panel that the Government negotiate to achieve the States’ support for financial
  recognition, is an essential precursor to the Committee being able to make a
  recommendation on the likelihood of the referendum being supported by the
  Australian people. This view was reinforced by a number of witnesses who
  indicated that, for the referendum to be successful, States either had to
  actively support the measure or at least ‘run dead’ on the issue.
Evidence received by the Committee suggested that the
  Government position was that negotiation could not occur with the States until
  a proposal was developed.  Coalition members of the Committee reject this
  position and consider that the Government has failed to make best use of the
  time since December 2011 by failing to undertake such negotiations and that
  this delay has potentially undermined the prospect of a full and informed
  referendum proposition being put in 2013.
As of 6 March it is lamentable that the Minister for
  Regional Australia, Regional Development and Local Government, the Hon Simon
  Crean MP, still cannot confirm the views of State support for a referendum.
The second precondition which has not been met is that a
  viable educational campaign be conducted by the Federal Government. The
  prospect of a referendum held in conjunction with this year’s Federal election
  raises serious risks where the opportunity to fully inform the voting public
  through public education and other avenues has not been fully realised.
Where a proposed change is worthy of support, a
  well-informed public will be more likely to support it and, if a proposed
  change has potential pitfalls, a well-informed public will be more likely to
  identify those problems and vote accordingly.
Past experience in referenda in this country has clearly
  proven that Australians tend to vote ‘no’ if they do not fully understand the
  issues behind the question. As noted in our earlier Dissenting Report, the
  desirability of the public being well informed regarding potential
  Constitutional change is even more important given that all Australian citizens
  are required to vote in a referendum.  As such, it is not just those who have
  taken an active interest in the question, but those who are notably
  disinterested, who are required to make the decision. 
Parliament should take all reasonable steps to maximise the
  likelihood that all voting Australians understand the question and have an
  opportunity to thoroughly consider the ‘yes’ and ‘no’ arguments before making
  their decision.
The third precondition ignored in the final report by the
  Gillard Government is that ALGA still does not have any confirmation regarding
  funding levels to be provided by the Federal Government. The Federal Government
  needs to match contributions by ALGA to the campaign equivalent to the funding
  provided to the Indigenous Recognition Referendum. 
On 20 February 2013, ALGA gave further evidence to the
  committee that they recommend we continue with a referendum for the next
  election. President Felicity-Ann Lewis reiterated that ‘ALGA is committed to a
  referendum on financial recognition of local government in 2013, provided the
  successful conditions for a referendum have been met’.
As such, we as members of the Committee make two
  recommendations:
  - That
      the Minister take immediate and urgent action to remedy the abovementioned
      outstanding issues; and 
      
  
  - That a referendum on the financial
    recognition of Local Government be put to Australian voters at the 2013 federal
    election.
    
    
     
Mr Mark Coulton MP                                  Mrs Jane
  Prentice MP