The state government’s announcement of an independent review of local councils has proved a contentious issue.
The review, announced by the Minister for Local Council Don Page, will interrogate governance models, boundary and structural issues.
“The review panel will take into consideration councils’ ability to support the needs of their communities, ability to deliver services and infrastructure efficiently,” Mr Page said.
Patricia Forsythe, executive director of the Sydney Business Chamber (SBC), welcomed the review.
“41 councils is an antiqued structure for a modern global city and it should be reduced to somewhere in the region of 10 larger, better resourced councils that reflect the economic centres,” she said.
“What we’re trying to do to is get a more efficient council and a metropolitan strategy that creates ownership around local government.
The emphasis on economic outcomes for councils has come under criticism from the Greens and unions.
Greens MP David Shoebridge said any changes would be obsolete.
“The best governance models are those which provide the closest links possible between councillors and their communities. The current model provides that.”
“The Sydney Business Council is not interested in better services and infrastructure for local communities. They are interested in increased business profits through outsourcing and rate cuts.”
The amalgamation of Victorian councils in 1994 under Premier Jeff Kennett proved to be a divisive issue; it was beneficial for metropolitan Melbourne but destructive for some rural centres.
While the SBC hasn’t called for reform outside of Sydney, president of the United Services Union, Graeme Kelly, warned of the impact on communities.
“It would be a disaster for rural and regional NSW, as well as for residents in urban and suburban areas. If some councils are struggling financially, which we know they are, the answer is to fund them – not merge them into some super-council, which inevitably drive down the services of residents.”
Mr Kelly also warned of the effects of privatisation. “When the Sydney Business Chamber calls for council amalgamations it is because it sees this as the best way to mass-privatise the vital services local government provides, like garbage collection, libraries, childcare and road works.”
The review is scheduled to report to parliament in 12 to 14 months.
By Christopher Harris
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