"We want to see the importance of communities given a greater emphasis in the future governance of Australia," said Cr Marjason.

The Prime Minister asked local government to develop a blueprint for constitutional reform in the inaugural meeting of the Australian Council of Local Government (ACLG). Local Government responded at the Summit by developing a model for constitutional change which does the following:

1. proposes a new power be added to the constitution to expressly empower the Australian Government to fund local councils, and

2. proposes that the existence of local government be reflected in the constitution and provides for the right of people to democratically elect their local council.

The model is the culmination of a three-day summit in Melbourne attended by 570 Council representatives from all states and territories.

Speaking at the conclusion of the Summit, the President of ALGA, Cr Geoff Lake said, "Today local government has developed a plan for the Australian Government and the Australian people to drag Australian federalism into the 21st century."

"This is fundamentally about modernising Australian federalism so government functions better and unnecessary bureaucracy is removed so services are delivered more efficiently and effectively to people.

"Inserting a financial power for the Australian Government to directly fund local councils reflects the growing links between the two levels of government and will strengthen the opportunity to provide local infrastructure and services which meet the expectations of local communities. This is all about strengthening accountability between local communities and their councils."

Cr Marjason said that Palerang Council would provide more opportunity for community input as the process was developed with the Australian Government. "This opportunity is a welcome change to past approaches where the 'answers' have been determined centrally," he said.