LGA 2002 – Section 10, Reminder for Asset Management Plan Updating

Section 10 Tests – Waugh Infrastructure Management Commentary for application to Asset Management Plans

As stated in S10(1)b legislation quoted above the purpose of local government is to:

• Meet current and future needs of communities
• For good quality local infrastructure
• In a way that is most cost effective for households and businesses

In S10(2) good quality is defined as:

• Efficient
• Effective
• Appropriate to present and anticipated future needs

In considering the provision of infrastructure the Section 10 tests the local authority must consider are:

• Cost effective for households and businesses
• Efficient
• Effective
• Appropriate to present and anticipated future needs

As Waugh Infrastructure Management have worked through the application of these tests with clients updating asset management plans this year, it is clear that these tests could potentially be applied at three different levels in the process.

1. Long Term Plan level, covering the whole of Council and all assets
2. Whole of Activity Level, as an overview statement in the Level of Service section of the asset management plan
3. Individual service level, as a test of the statements against each service level

It seems to us that applying these tests at individual service levels is too fine a level of detail, would not add value to the process and isn’t the intent of the legislation.

Applying the tests at a Long Term Plan level is the simplest option, but given the wide range of different services delivered by Councils may require a range of work to demonstrate the tests have been met for all of those services.

The approach we have been suggesting to clients is to apply these tests in AMPs at a whole of activity level, by inserting a statement regarding this into the Levels of Service Section of the Asset Management Plan.  

This can then inform the 30-year Infrastructure Strategy and the Long Term Plan.

With the recent changes 2014 in the Local Government Act, Section 10 should also be read in conjunction with Section 17A, Delivery of Services.  

For more detail on this please see my previous blog post

1. Local Government Act 2002 Amendment Act 2014
2. LGA 2002 Section 17A – Delivery of Services Review

If you require more detail regarding the application of the Section 1o tests to your AMP updating, please CONTACT US.