Council to discuss merger options tomorrow

COUNCIL: Councillors and staff are preparing to discuss council merger options at tomorrow night’s meeting.

Almost two-thirds of NSW councils were deemed unfit for the future last week on the basis of a report by the Independent Pricing and Regulatory Tribunal (IPART).

They have until November 18 to decide on merger solutions or the NSW Government will decide for them.

The report assessed councils based on financial criteria, which Yass, Goulburn and Cooma councils failed to meet; and scale and capacity, which Queanbeyan and Cooma councils failed to meet.

Neighbouring councils that agreed to merge, such as Harden, Cootamundra, Young and Boorowa, were found to have met the criteria although larger mergers were recommended.

The report found reducing waste and red tape through local government mergers could free up to $2 billion over the next 20 years for NSW ratepayers, which could stabilise council rates and fund better services and new infrastructure for communities.

NSW Premier Mike Baird and Local Government Minister Paul Toole also announced a new Stronger Communities Fund, providing each new council up to $15 million to invest in community infrastructure projects such as sporting fields, libraries, and parks and funding of up to $10 million for each new council to ensure ratepayers do not pay for the up-front costs of merging.

This funding will be available to those mergers agreed to by councils and the NSW Government.

“Four years of independent research, analysis and NSW Government consultation with councils and the community has shown that the current system of local government is not working as well as it should be,” Mr Baird said.

“With 60 per cent of councils not fit for the future, this IPART report shows the situation is now critical and that action is needed to ensure ratepayers get value for money and the services and infrastructure they deserve.”

“For many councils this is a final opportunity to do the right thing for the future of their communities, which in many cases may include merging with neighbouring councils.”

The report noted eight submissions from Yass Valley residents had a common theme of dissatisfaction with the performance of the council, and one submission was in favour of mergers even though it wasn’t adopted as an option.

“A number of submissions consider the council is poorly run, including its financial management, governance and strategic management,” the report said.

“One submission considers the decision to ‘go it alone’ ignores the interest of ratepayers, and considers smaller councils have high overheads.

“Two anonymous submissions consider Yass Valley is not Fit for the Future based on how the council has prioritised (incorrectly) spending on land acquisition compared to infrastructure maintenance, and the use [of] rate increases to maintain or improve infrastructure.”

Goulburn Malwaree Council has announced in-principle support for a “super merger” between five of the unfit councils; Yass Valley, Goulburn Mulwaree, Queabeyan, Palerang and Upper Lachlan Shire.

They believe it would give the regional areas a stronger voice and better bargaining power.

Opponents are concerned this would reduce community engagement and create a “state within the state”, made up of representatives and constituents with incompatible demographics.

Harden Shire councillor Matt Stadtmiller said Yass Valley should have considered merging with Harden because they thought Yass a viable option.

“Harden Shire Council was very interested in talking to Yass early on in the process,” he said.

“Talks and negotiations didn’t commence and it wasn’t from Harden’s lack of trying.

“It is a bloody shame because Harden councillors saw Yass as a very viable option and probably still do.”

Read Scoop’s breaking story and a copy of the report here.