Mike Baird’s NSW government came under fire recently when media reports claimed pressure was being placed on local governments to propose mergers or risk being deemed “not fit” under the government’s Fit for the Future funding plan.
Reports claimed that Minister for Local Government, Paul Toole had sent letters to Sydney councils telling them he had asked Independent Pricing and Regulatory Tribunal (IPART) to assess how fit they were for the future.
Fears are that this could lead to the creation of mega councils, looking after a population the size of Tasmania in some cases.
Local Government NSW President Keith Rhoades AFSM said in a statement that there had been no mention of mega councils in his discussions with Mike Baird prior to the reports. However, he is not a big supporter of amalgamations and called on government to make a statement on the subject.
Council amalgamations are a hot topic. They were recently taken off the table in WA while some councils in QLD are in the process of de-merging.
IPWEA NSW CEO John Roydhouse acknowledged that there have been cases in NSW where amalgamations have been successful in delivering efficiencies for taxpayers, pointing to Bathurst City and Evans Shire Councils amalgamating to become the Bathurst Regional Council and the Mid Western Regional Council being formed from the Mudgee Rylstone and parts of Merriwa Shire Councils.
“In these organisations there has been an increase in expertise, retention of engineering staff and arguably an increase in capacity to deliver essential services in line with community expectations,” he said.
Roydhouse said that it is still to be determined whether amalgamations produce better results than existing councils working in collaboration at a regional level, whilst retaining their independence.
“Like all good debates there are pros and cons and in this situation. It is important that the recognition, the skills and knowledge provided by public works professionals at a local level is maintained.
“Not only is it [important] for the practical management of public assets there is the element of public health and safety to be considered. Public works professionals, and engineers in particular, have a high level of responsibility in ensuring our road and transport networks, our water and sewerage systems, our waste management facility our public recreation and sporting facilities not only function for a convenience factor but to protect public health and safety and enhance our quality of life.”
He concedes that reform in local government must happen, but criticised debate for simply honing in on amalgamations and not exploring other options.
“There is no doubt reform in local government must occur. Unfortunately the issue has focused primarily on amalgamations and only time will tell whether this is indeed the solution local communities are looking for,” he said.
“There are still many issues for local government to address including adequate funding, the myriad of legislative requirements in delivering public works engineering, levels of service and meeting community expectations, and the tendency for higher forms of government to pass responsibility back to local communities.”
The Independent Pricing and Regulatory Tribunal (IPART) has begun consideration of the public submissions received during July as part of its assessment of council proposals under the NSW Fit for the Future reforms. Around 1560 submissions were received.
IPART will deliver its technical assessment of each council’s proposal to the Minister for Local Government by 16 October.