Councils backing state government into a corner
The momentum for council amalgamations in Tasmania has returned front and centre to the reform agenda as local government leaders fail to recognise the wishes of their communities.
Property Council of Australia Executive Director TAS Brian Wightman indicated that the time was right for the state government to take stronger action.
“While the Tasmanian community demands that efficiencies be found when spending their hard earned dollars, councils respond by giving themselves a pay rise.
“The Local Government Association of Tasmania has made it absolutely clear that councils are not going to voluntarily amalgamate anytime soon. Consequently, they are taking a significant risk by backing the state government into a corner.
“The people want it, the Government wants it to occur and Property Council couldn’t be clearer in its advocacy,” Mr Wightman said.
Division President and local Launceston businessman Mr Sam Hogg said that significant savings could be found as a result of structural reform by reducing the number of general managers, senior bureaucratic staff, the duplication of offices and processes, and of course the number of elected officials.
“If we want to create jobs and growth in Tasmania we need to act by delivering meaningful reform of local government in order to reduce costs and improve service delivery.
“The Government must take stronger action immediately, Tasmania must be fit for purpose and able to compete at a state, national and international level,” he said.
Mr. Wightman highlighted that there was now a significant body of research and opinion polling which supported the call for action. The Southern Tasmanian Councils Authority’s independent report commissioned by the councils themselves and then ignored, the Deloitte Access Economics Report, the 2013 Sansom Report in NSW followed by the recently released IPart Report which, when combined with regular opinion polling over the last four years, strongly articulates the reasons why reform must occur.
“Reports have indicated efficiency savings of up to 35 per cent. These figures are strongly supported by public sentiment, with polling conducted over a four year period highlighting that support for council reform remains strong in the Tasmanian community and in fact demonstrates that support is on the increase,” he said.
The NSW Government recently released the IPART’s final report on the ‘Assessment of Council Fit for the Future Proposals’.
Of the 139 proposals received, 52 were found to be ‘fit’ under the Fit for the Future criteria established by the Government last year. These included four merger proposals (covering nine councils) and 48 proposals from councils proposing to stand alone.
Proposals were assessed according to whether they delivered the scale and capacity, financial sustainability, the ability to effectively manage infrastructure and services, and efficiency for the community as required under the criteria.
The report argues up to $2 billion in benefits could be delivered through mergers within Sydney over the next 20 years if the Independent Local Government Review Panel’s merger recommendations were adopted.
Councils found unfit now have 30 days to identify options for amalgamation, or risk having it imposed on them.
Property Council of Australia Executive Director NSW Mr. Glenn Byers has joined the local government reform push in his state off the back of the 2013 Sansom Report and the IPART findings.
“It makes sense for Sydney to reduce the number of councils and reframe the boundaries, given they were largely set over 100 years ago and no longer have relevance to the demands of a global city.
“It’s about creating councils that can buy into the strategic thinking needed to create a great city, and have the scale to get on with the job of delivering better services and infrastructure.
“Council amalgamations are a game-changer that will allow councils to better plan, manage and execute their budgets, as well as improve service and infrastructure delivery,” he said.
Mr Wightman concluded by acknowledging the utterly ridiculous situation where councils in NSW have thirty days to respond, yet in Tasmania we allow the process to meander along.
“The evidence for council reform is overwhelming and the lack of leadership shown by local government will ultimately result in their destiny being taken out of their hands,” he said.
Further information
http://www.ipart.nsw.gov.au/Home/Industries/Local_Govt/Fit_for_the_Future
http://stca.tas.gov.au/future/
Media contact: Brian Wightman |M 0429 073 773 |E [email protected]