Victorian public libraries: facing the future.

Victorian public libraries have undergone major changes since the state's local government sector was restructured in 1993 - 1995, including being the first in the world to be exposed to compulsory competitive tendering. This paper looks at the overall patterns consequent on the introduction of compulsory competitive tendering and considers some of the directions being taken by libraries, including the introduction of three year funding and service agreements. Revised version of a paper delivered at the `State of the art' public libraries conference held in Melbourne in July 1998

Victoria has forty four public library services, including two specialist public libraries for people with print disabilities. Of note is the structure of services in Victoria--fifty four of the state's seventy eight councils are members of regional library corporations. This helps explain some of the responses to compulsory competitive tendering.

In 1996/97, expenditure in the Victorian public library sector was close to $100 million. Some key statistics for 1996/97 show the size of operations across the state[1]

* 2.4 million Victorians out of a population approaching 4 million are members of the public library network

* 23.82 million visits were made to public libraries

* 40.16 million loans were made from collections totalling 8.74 million items

* $16.1 million was spent on books and materials (21.9% of total expenditure)

* 297 branches including 32 mobile libraries

* these branches were open a total of 9,500+ hours per week

* libraries employed 1412 staff

* over 2.6 million reference enquiries were handled

The government's core funding programs are administered through the Office of Local Government which is part of the Department of Infrastructure, These programs were worth $22.151 million in 1997/98 and $22.847 million in 1998/99.

This paper discusses firstly the compulsory competitive tendering (CCT) process to date in Victoria. It then looks at some of the new directions public libraries are taking.

Compulsory competitive tendering[2]

Based on records held by the Office of Local Government, twenty five public library services are operating under whole of service agreements.

* All but one whole of service tender went to the inhouse bid team--the exception was Melton Shire Council which had no staff team to bid

* Competition has been very limited. There is no commercial interest in whole of service bids and only minimal interest from other library services in bidding for other business. There have been a few examples of this occurring, in both city and country areas

* Most, but not all, metropolitan services, including regional library corporations, have been through the tendering process. This should be seen against the pattern of most councils tendering services across the board

* In country Victoria, six services have been tendered out but only one regional library corporation. One single service council is in the middle of the process and one more council has plans to call for tenders

* Most rural regional library corporations are managed by a chief executive officer/regional library manager. In these cases, whole of service tendering is possible but administratively very difficult. Individual council members can still get CCT credits through the tendering of components of services

* Some councils (East Gippsland, Moreland) have decided that library services are core council functions and will not be tendered out

The first cycle of three year tenders is coming to completion in 1998/99. It will be most interesting to see what patterns emerge. Options include extending a tender under existing conditions, or retendering, or possibly moving to components only tendering. Tendering by components of service, such as materials provision, computer services has proved to be popular and very successful, especially in country Victoria.

Recent examples include

* the joint materials tender program involving seven country library services and worth over half a million dollars. This program has been highly successful and has delivered country libraries benefits that could not have been achieved

on an individual basis

* the joint tender for fourteen new mobile libraries for country Victoria funded through a $2.5 million community support fund grant. This tender has delivered significant cost benefits to the participants

New directions for Victorian public libraries

Funding and service agreements

The major recent initiative in the Victorian public library environment has been the introduction of three year funding and service agreements with the forty two library services and the two libraries for people with print disabilities.

This is being handled through the Office of Local Government in the Department of Infrastructure. A booklet Local priorities funding for Victorian public libraries, setting out this process and detailing the local priorities funding projects funded through this process has been published by the department.[3]

These agreements replace a complex funding formula which had been in operation since 1993/94. Following the restructuring of the state's municipal councils and the subsequent reorganisation of its library services, it was apparent to all parties that the formula was no longer delivering the policy objectives for whom it was designed.

The concept of triennial negotiated agreements was discussed with the local government and library sectors. There was broad support for the introduction of agreements and for a forward commitment of government funding levels.

The funding and service agreements will cover two program areas

* core funding

* local priorities funding

The key features of the new arrangements are

* no reduction in statewide funding levels

* three year funding commitment from the state government

* the funding model uses the Victoria Grants Commission classification of municipalities and Australian Bureau of Statistics population data

Core funding is provided to assist councils with the provision of public library services. The level of funding for each library services will be provided for the three year term of the agreement subject to appropriation being available. In 1998/99 core funding has been increased by three per cent. The amount of core funding for each service is calculated using a per capita component and a weighting derived from the Victoria Grants Commission's classification of councils.

The receipt of this funding is subject to each council or regional library corporation agreeing to a set of standard conditions including

* the provision of a library service that is available for use by anyone in the municipal district and which provides reciprocal borrowing privileges to applicants eligible for membership of any other public library service in Victoria

* the library service must not impose any charges for basic library services

* the service must be managed at the operational level by a librarian eligible for professional membership of the Australian Library and Information Association 

* the provision, on an annual basis, of statistical data, a library service plan, and an annual report

The government also provides local priorities funding, subject to appropriation being available, for a period of up to three years for the purposes of

* local service priorities, as identified in the library's corporate plan, business plan and/or compulsory competitive tendering agreements

* specific service programs after considering local performance against agreed criteria, both statewide and local

* any other projects or services as may be mutually agreed

The conditions for the receipt of local priorities funding were negotiated with each council or regional library corporation through a series of meetings across the state in late 1997. This was probably the first time in decades that the government funding authority had sat down with each council or regional library service and discussed funding and service provision.

The introduction of funding and service agreements has been a successful program, with very positive responses from councils and regional corporations.

Current developments

In the late 1990s there is a process of maturation underway in Victorian public libraries.

The first cycle of CCT agreements is drawing to a close and the first cycle of regional library corporation agreements is due for review and renewal.

Regional libraries

Whilst local government restructuring affected council operations, regional library corporations were not affected as much, particularly in country areas. Changes have certainly occurred, especially with the formation of corporations with legal status. However service delivery patterns have, on the whole, tended to continue along established lines.

Cooperation

Stronger patterns of cooperation are now emerging among public libraries. There was a very real concern in early days of restructuring that the strong patterns of cooperation across the state would falter. Yet strong cooperative activities have continued to develop and highlights include

* the MurrayLink computer cooperative involving four services in a range of computer based activities. At least another four libraries are expected to join this network by the end of 1998

* the joint materials tender project which has already been mentioned

* LibLink, another computer based network which involves five libraries in both city and country locations

* the mobile libraries project which involves the funding of sixteen new mobiles in country areas through funds provided by the community support fund. There have been common sets of specifications developed and a joint tender has been called for fourteen of the new mobiles

Renewal

It seems that a process of review and renewal is underway, especially in country Victoria.

Areas that will be explored in the near future include

* the impact of new technology and ESD proposals. There is much work proceeding in this area. One particularly interesting project is Wimmera Regional LibraryCorporation' sconvergent technology project. Expressions of interest for this were called for in July 1998. The project will look at services that can be provided on mobile libraries, including the feasibility of banking services

* the Office of Local Government has announced a review of the operation of S196 of Local government act under which regional library corporations operate, to see if any fine tuning is necessary to improve operating efficiencies

* there will be major activity in the area of benchmarking in coming months involving public libraries, the Office of Local Government and the State Library

Conclusion

Public libraries in Victoria have been through a process of major reform and restructuring, including being the first in the world to be exposed to CCT. Now that service delivery patterns have settled down, new approaches to cooperation are emerging and will continue to emerge in the near future.

References

[1] Data derived from Annual survey of Victorian public libraries 1996-1997 Melbourne, Department of Infrastructure, Office of Local Government 1998

[2] Australasian public libraries and information services has carried several articles on compulsory competitive tendering in Victoria since 1995. The most recent are Geoff Carson `Compulsory competitive tendering in Victoria's public libraries: beatific vision or blunder?' in 11(2) June 1998; and Phyllis Papps `Life on the other side: managing in a contract environment' in 11(3) September 1998

[3] Copies are available from the DOI Bookshop GPO Box 2797Y Melbourne 3001

Graham Dudley BA(Hons) GradDipLib CertProjectMgmt is manager Public Library Services in the Office of Local Government, the Department of Infrastructure in Melbourne, a position he has held since 1996 when the government's core funding programs were transferred to the department. Previously he held a similar position in the Office of Library Services at Arts Victoria. Graham began his library career at the State Library of Victoria in its cataloguing department and also worked in the public libraries division. Address: Office of Local Government GPO Box 2797Y Melbourne Vic 3001 tel[phone] fax[phone] [e-mail]

Graham Dudley Manager Public Library Services, Local Government Operations, Department of Infrastructure Vic

Received November 1998