Council amalgamations on the table

Leichhardt Mayor Darcy Byrne has hit back at NSW Local Government Minister Don Page’s announcement that council amalgamations are a possibility.

Currently the Independent Local Government Review Panel is evaluating possible changes to the form of local governments in NSW. The panel recently stated the amalgamation of councils would increase efficiency in local government services. The move was widely seen as a first step by Mr Page towards diminishing the number of councils in NSW, which currently stands at 152.

A spokesperson for Minister Page said the State Government is open to all of the panel’s suggestions.

“There’s not much point in telling a group of experts to go away for research and ignore what they say,” said the spokesperson.

Leichhardt Mayor Darcy Byrne fears Leichhardt in particular may be subject to an amalgamation.

“This is yet another breach of faith with the people of NSW,” said Mr Byrne. “In 2011 the Government adopted a timid, small target election strategy which made no mention of heavy-handed Council amalgamations.”

A spokesperson for Minister Page maintained “everything is on the table”. The spokesperson reinforced the State Government’s election promise that there would be no forced amalgamations, only voluntary ones.

According to the Panel, the main benefits of amalgamation are efficiency and sustainability of local councils.

“The evidence suggests that NSW has too many local councils and that various forms of consolidation should be pursued to strengthen strategic capacity and sustainability,” the Panel stated. It also said amalgamation was critical to making Sydney “globally competitive through to and beyond 2036”.

Mr Byrne appreciated that the amalgamation will create economies of scale and in turn increase efficiency of councils. But he said councils already have this benefit of economies of scale through regional organisations of councils.

Leichhardt Council forms part of the Southern Sydney Regional Organisation of Councils (SSROG), working with around a dozen other councils in the region.

“We do all of our major procurement through SSROG already, which increases efficiency in that regard,” said Mr Byrne.

Mr Byrne also said local councils are critical because they bring local democracy.

“People value having local democracy,” he said. “Local governments are accessible to people and they are closest to the coalface.”

Nonetheless, the Panel has flagged additional changes to local councils beyond amalgamation. The Panel suggested it wants to see improved infrastructure, shared services and new regional organisations.

The Panel will deliver its report to the state government in July 2013. Minister Page will then consult with relevant stakeholders and the Panel to deliver a policy package.