Obesity-related health impacts of active transport policies in Australia - a policy review and health impact modelling study

To review Australian policies on active transport, defined as walking and cycling for utilitarian purposes. To estimate the potential health impact of achieving four active transport policy scenarios.A policy review was undertaken, using key words to search government websites. Potential health benefits were quantified using a cohort simulation Markov model to estimate obesity and transport injury-related health effects of an increase in active transport. Health adjusted life years (HALYs) gained and healthcare cost savings from diseases averted were estimated. Budget thresholds to achieve cost-effectiveness were estimated for each scenario.There is broad recognition of the health-related benefits of active transport from all levels of Australian government. Modelling results suggest significant health-related benefits of achieving increased prevalence of active transport. Total HALYs saved assuming a one-year effect ranged from 565 (95%UI 173-985) to 12,105 (95%UI 4,970-19,707), with total healthcare costs averted ranging from $6.6M (95$1.9M-11.3M) to $141.2M (95$53.8M-227.8M).Effective interventions that improve rates of active transport may result in substantial healthcare-related cost savings through a decrease in conditions related to obesity. Implications for public health: Significant potential exists for effective and cost-effective interventions that result in more walking and cycling

Economies of scale and local government expenditure: evidence from Australia

Controversy surrounds structural reform in local government, especially efforts aimed at involuntarily reducing the number of local authorities to secure scale economies. We examined whether scale economies exist in local government outlays by analyzing the expenditure of 152 New South Wales councils. Initially, council expenditure is characterized by scale economies. However, given the correlation between population and population density, it is important to determine whether the influence of population on expenditure is due to variations in population density. When areas are decomposed into subgroups on the basis of density, the evidence of scale economies largely disappears

Would Bigger Councils Yield Scale Economies in the Greater Perth Metropolitan Region? A Critique of the Metropolitan Local Government Review for Perth Local Government

Forced amalgamation is a ubiquitous feature of Australian local government reform - compulsory council consolidation programs have occurred in all states and territories, with the sole exception of Western Australia. However, the Final Report of the Metropolitan Local Government - released in October 2012 - called for a reduction of about 60 per cent of the local authorities in the Greater Perth metropolitan area. The Western Australian Government responded by announcing that the number of Perth councils will fall from 30 to 14 from 1 July 2015. The Final Report recommended amalgamation on seven main counts, including scale economies. However, apart from citing work on Tasmania by commercial consultants Deloitte Access Economics (DAE) (2011), no econometric evidence was produced in support of claims on scale economies. This paper seeks to remedy this deficiency by estimating a number of econometric models on the impact of amalgamation on Perth local government. The results of our empirical modelling suggest that scale economies, cost savings and other pecuniary gains are largely illusory. Indeed, only two of the ten main local government functions provide evidence to suggest potential economies of scale. © 2014 National Council of the Institute of Public Administration Australia