The President of Friends of Kuringgai and Environment says the proposed council amalgamations are just a bandaid solution for a bigger problem. Written by Kathy Cowley

Fears are growing rapidly among NSW Councils that a new $1 billion State government package deal tied to reforms is a Trojan horse for council amalgamations in the lead up to the March 2015 State election.

NSW Liberal Premier Mike Baird recently dangled a swag of incentives in front of councils, including the holy grail of more rate-setting flexibility, alongside cheaper loan finance; greater planning powers; priority access to state funding and grants and a wedge of cash to help any councils that want to merge but there is a catch: local governments must first prove they are ‘Fit for the Future’ .

To prove they are fit, councils must complete a self-assessment by 30 June 2015 the criteria of which some councils say includes the requirement to put forward an amalgamation proposal, if that’s what was recommended by the independent review that informed the funding package.

While the NSW government is saying they will not force amalgamation, it is expected the government are waiting until after the elections in March 2015 to act to do so! Friends of Kuringgai and Environment (FOKE) is aware of Liberal sources in Ku-ring-gai who are stating amalgamation is likely to happen after the elections. Some Kuringgai councillors are privately actively supporting amalgamation without first consulting ratepayers.

Kuringgai Council’s position following resolution at the council’s ordinary meeting of 24 February is that “ Ku-ring-gai Council is confident that it is fit for the future as a stand-alone council, but has agreed to hold discussions with neighbouring councils and to explore other options.” Council has appointed consultants Morrison Low to facilitate merger discussions with Hornsby Council.

Kathy Cowley, President of Friends of Kuringgai and Environment

Kathy Cowley, President of Friends of Kuringgai and Environment

However, it is still unclear as to when Ku-ring-gai ratepayers will be consulted on a range of views about amalgamation. FOKE fears ratepayers will be the last in the chain to be consulted as council has stated in a letter to FOKE on March 3 there will be no community consultation until council “has determined its preferred course of action, it will (then) concurrently determine the strategy for consultation with the community.”

This is certainly not the strategy that surrounding local council’s such as Ryde, Willoughby, Lane cove, North Sydney, Mosman, Pittwater and Hunter’s Hill Councils have adopted in consulting ratepayers upfront while assessing the “Fit for the Future” legislation.

In a recent Fairfax article, Professor Brian Dollery and Dr Joseph Drew from the Centre for Local Government, University of New England, stated that there are still many questions to be answered by the state government before amalgamations can be considered. Namely:

  1. Why is the government prevaricating on the controversial question of forced mergers after the March election?
  2. Why are councils being given an incredibly short period of time to explore voluntary amalgamations?
  3. How much debt will ratepayers be forced to accept from neighbouring councils in forced mergers?
  4. How can the government assess the financial sustainability of a council without knowing how much revenue it will derive through rates and changes to grant allocations?
  5. How can the government assess council sustainability on financial data which its own agencies agree is unreliable?
  6. Why is the government persisting in using a measure for council efficiency that does not measure efficiency?
  7. Why has the Baird government rushed through its ‘Fit for the Future’ reforms despite a good deal of ‘‘unfinished business’’ that its own expert panel and the Office of Local Government agree will significantly alter the financial sustainability of councils?

Both Council and Jonathan O’Dea MP have refused to put the seven questions to the Premier and Minister for Local Government for answers.

In leading up to the state elections Davidson MP Jonathan O’Dea avoided our question as to where he stands in support of amalgamation of councils and Ku-ring-gai Liberal state candidate Alister Henskens did not reply to the question. We believe they should come clean with residents, as to where they stand on forced amalgamations.

The Local Government NSW (LGNSW) the association that represents 53 councils in NSW recently stated “if communities do not want their council to merge , then that decision should not be forced on them – and it certainly shouldn’t be forced upon them by stealth.”

We agree!

 Kathy Cowley is the President of Friends of Kuringgai and Environment (FOKE). To contact FOKE, call (02) 9416 9007.