The National Capital Authority cannot continue to exist under current funding levels, and could even be forced to ask new embassies in Canberra to pay rent to help keep it afloat, according to a report issued today.
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The Hawke report into the authority's future also recommends the Government effectively reverse big cuts made when it came in to power in 2007.
Among 25 recommendations, former senior public servant Allan Hawke has suggested that, unless a solution is reached by the end of the year, ''the Government adopt a policy position whereby all new embassies and high commissions established in Canberra are required to pay annual rent and that rent be considered in the context of resolving the NCA's budget pressures''.
He points out the authority would have to either be abolished or change its form considerably to continue to operate with its existing resources, and that this would amount to ''an abrogation of the Commonwealth's responsibility for the national capital''.
The authority's chief executive, Gary Rake, welcomed the report, and said most of the suggested improvements could be achieved without legislative change.
''The driver for change would be in the hands of the board of the NCA, and so this is really an opportunity for the board to show sincerity and genuine goodwill in wanting to improve the planning arrangements in the ACT,'' he said.
The report suggested three options to boost the authority's funding, including one that called for an extra $7.9 million, which would make Canberra ''a national capital to be proud of''.
Mr Rake said it would also be about the same in today's dollar terms as the amount that was cut from the authority's budget in 2007.
''It actually says that we'd be able to do the job better than we were three years ago, and it's because in the past three years, we've cut a lot of waste out of the organisation.''
This included reducing the number of senior executives at the authority from seven to two, and spending less on events that have little interest outside Canberra.
The report also recommends that the authority's planning system be simplified by better recognising the role of the ACT Government, that it reassess the meaning of the city's ''national significance'', and develop a five-year plan of information and educational activities.
Mr Rake said the proposal earlier this year that Canberra be assessed for inclusion on the National Heritage List would be a practical way to reassess the city's values of national significance.
''That will then guide us to work out how do we carve up the responsibilities,'' he said.
But Mr Rake said some of the recommendations had come ''out of left field'', including one that would see the NCA solely responsible for all capital works within the designated zone.
He said if this recommendation were adopted, it would mean the NCA would have full responsibility for every aspect of large-scale projects such as the new ASIO building in Russell.
''We have planning approval, but [Dr Hawke] would have us responsible for building it as well, which would take the function off the Department of Finance,'' he said.
''That recommendation is likely to be resisted, because it would be seen as concentrating too much power in one agency.''
Referring to the report, Regional Australia minister Simon Crean said yesterday there needed to be less ambiguity in responsibility for planning and land management in the ACT. He planned to respond to the report by the end of the year.
