Thursday, 4 May 2023

Regional library corporations

Sarah MANSFIELD (Western Victoria) (22:22): (193) The action I am seeking is for the Minister for Local Government to meet with representatives of all the current regional library corporations regarding the requirements under the Local Government Act 2020 to transition to a new corporate structure. Victorian public libraries are one of the last true egalitarian institutions in our society, providing free access to information for everyone. They generate more than four times their value in benefits to the local community for every dollar spent on them. More than just books on shelves, they deliver education, physical and digital literary materials and indoor and outdoor spaces for people to meet, work, spend time, host events and play, and they link people with other council and community services.

Our public libraries enjoy strong community support. However, it is getting harder for councils to continue to meet their expectations in a financially sustainable way, particularly with rate capping. A number of councils approach this by sharing library services and resources in the form of regional library corporations. This was a structure allowed under the now superseded Local Government Act 1989. A 2019 Victorian Auditor-General’s Office report identified that regional library corporations overall are more efficient than standalone council libraries because of their longer opening hours and high volume of loans, which offset their larger investments.

The Local Government Act 2020 requires that regional library corporations transition to a new corporate structure by 2030. This structure can take the form of one under legislation that governs corporate entities: the Corporations Act 2001, the Associations Incorporation Reform Act 2012 or the Co-operatives National Law Application Act 2013. The change carries potential benefits; however, it also creates risks for many public library services. There are eight regional library corporations yet to undergo this transition in Victoria. Each has a different composition in terms of member councils and structure; however, all face similar financial and administrative challenges associated with the transition process. These include costs of undertaking due diligence, including legal and consultancy fees, and the implementation of their new corporate structure, including potentially substantial workforce-related liabilities. There is also the genuine possibility that some councils will move away from resource-sharing models due to the complexity of agreements and financial risks, to the detriment of library users, smaller council corporation members and ratepayers.

Given the state government created the new legislative requirements for this change, they should be providing consistent, sector-wide guidance and legal support regarding the transition process, as well as adequate financial support to regional library corporations to assist with this transition. I urge Minister Horne to meet with regional library corporations and hear their concerns.