Alarm raised over councils failing on ratepayers’ disputes

Victoria’s Ombudsman has sounded the alarm on the growing issue of the state’s 79 councils adopting “widely varying approaches” to handling ratepayers’ grievances.

Ombudsman Deborah Glass is raising the alarm on councils’ inconsistent approach to solving ratepayers’ disputes. Picture: David Crosling

Victoria’s Ombudsman has sounded the alarm on the growing issue of local councils failing to handle and resolve ratepayer’s complaints in a consistent manner.

In a new report tabled in parliament on Wednesday, Ombudsman Deborah Glass found the state’s 79 councils are adopting “widely varying approaches” when responding to grievances about the services they outsource to third-party contractors.

This has led to Victorian ratepayers experiencing different outcomes with their complaints depending on which municipality they live in.

“As public authorities, councils have an enduring obligation and interest to handle complaints about the delivery of their services. This is perhaps even more so where the services are contracted out,” the report stated.

Since the Local Government Act was updated in 2020, Ms Glass said she has continued to receive a “steady flow” of complaints from Victorians about services or work performed by council contractors.

This is despite the government requiring all councils to adopt and maintain a complaint policy from January 1 2022.

Glen Eira Council dismissed Mr Wilson’s complaint as a compensation claim. Picture: Andy Brownbill

It has prompted a warning to council that they have “work to do” in developing and clearly explaining their complaint handling processes to ratepayers.

The investigation was sparked after a Glen Eira ratepayer’s house flooded, likely caused by stormwater pipes that were damaged during footpath works conducted by a council-employed contractor.

The ratepayer, referred to as Mr Wilson to protect his anonymity, complained to the council and sought $4125 in compensation.

But Glen Eira Council deemed the matter was not their problem because the issue was caused by a third party.

The council, who dismissed Mr Wilson’s complaint as a compensation claim, instead told him to deal directly with the contractor.

Mr Wilson, who refused to provide his details to the third party, is yet to have the complaint resolved and the damaged pipes are still yet to be fixed.

Ms Glass said Glen Eira’s handling of the complaint was ‘contrary to the spirit of its own policy, not to mention the Local Government Act’.

Ms Glass said Glen Eira’s handling of the complaint was “contrary to the spirit of its own policy, not to mention the Local Government Act”.

“The council’s response to Mr Wilson’s complaint and to the Ombudsman’s inquiries was largely through a lens of negligence, liability, and its financial responsibility to its ratepayers,” her report stated.

“When members of the public complain to a public authority, they rightfully expect the organisation will properly consider and respond to their concerns directly.”

While the investigation only involved one ratepayer within one council area, Ms Glass said she tabled the report to highlight bigger issues because “councils should not be paying lip service to the broad definition in the Local Government Act”.

The review found that 30 of Victoria’s 79 councils included a dedicated section in their policy on how complaints about contractors are managed, but many had different policies.

Some councils specifically assume a level of responsibility for the services of their contractors, others do not.

“This can result in an inconsistent experience for citizens making complaints, depending on where they live across Victoria,” the report stated.

“A council cannot exclude itself from the complaint process. Councils should always assess whether a complaint process is required and, if so, ensure that an internal review pathway is provided.”

Originally published as Alarm raised over councils failing on ratepayers’ disputes