Premier Mike Baird yesterday committed $258 million in incentives for the state’s 152 councils to decrease their number.

Regional councils could get up to $13.5 million each for merging.

The funds were part of the Fit for the Future package of up to $1 billion, which also included offering councils cheaper loans and reductions in red tape. 

Dubbo mayor Mathew Dickerson yesterday welcomed that the government had come to a decision and that it did not include forced amalgamations, but said it was too early to say if the package would benefit Dubbo.

“Until we get into the nitty gritty and until we put in a proposal (for package funds) we don’t know if it’s a win or a loss,” he said.

“If there’s a chance for Dubbo to gain more money, we’d be crazy not to look at it . . . (but) we need to look at more than upfront cash injections (in the short term) to solve long-term sustainability issues.”

Cr Dickerson said the package did not sound “overly-prescriptive” in asking councils how they would use the funds and that was “fantastic”. 

Previous work by TCorp gave Dubbo City Council a financial sustainability rating (FSR) of moderate.

It found the smaller Narromine and Wellington councils “may be sustainable into the medium-long term” but Wellington’s FSR was “weak”.

Earlier Mr Baird said the package of up to $1 billion, which also includes cheaper loans and reductions in red tape, put “ratepayers first, so councils deliver better roads, footpaths and sporting fields”. 

The Premier says more than a third of the state’s councils are facing financial problems and will need help to join forces with neighbouring councils.

“Clearly there needs to be less councils,” he said.

Mr Baird was asked if he would consider changing former premier Barry O’Farrell’s policy of not forcing councils to merge should his funding plan not be widely taken up.

“If we get to the end of the process and councils aren’t there and they’re not fit for the future, well we have to consider what options we can work with them,” he said.

“Because it is clear that the current position is not sustainable.”

Mr Baird was also asked if the amalgamations might lead to job cuts.

“I expect as part of this process there will be less people picking up pencils and more people fixing up local roads,” he said.

Yesterday the sector’s peak body welcomed the Premier’s announcement in response to the Independent Local Government Review Panel’s recommendations.

Local Government NSW (LGNSW) president Keith Rhoades said the organisation was pleased the government listened to its calls for a greater incentives package to help councils navigate the reform process.

“The government’s package is consistent with about 75 per cent of LGNSW’s submission to the review panel report on behalf of NSW councils,” Cr Rhoades said.

“. . . A key feature of the reform package is that there will be no forced amalgamations.

“There is, however, funding set aside for the immediate future to fund expert assistance and technical support for councils, who have been asked to prepare and submit proposals for change to the government by June 2015.”