news, local-news, NSW local government, council amalgamations
Potential savings from an amalgamated council have been inflated and academic opinions have been ignored, according to Greens MP David Shoebridge. The local government spokesperson said the Baird government was pushing for forced amalgamations across the state, without releasing any of the financial reports it was relying on. In response, the Greens have launched a council amalgamation website to detail the financial, social and democratic impacts on each local government area. The Dubbo and Wellington breakdown states the KPMG study "inflates any potential savings from future contracting arrangements in amalgamated councils, especially given the councils already enter into many contracts through [Orana] Regional Organisation of Council contract tenders when there are identifiable economies of scale from doing so". The study also grossly underestimated the likely costs to councils from renewing each council's IT infrastructure following the merger, according to the report. "[KPMG] ignores the large loss of council staff time and resources in implementing an unwelcome and often unsupported amalgamated council, and has no regard to the informed academic opinions based on detailed empirical studies of past council mergers that proves forced amalgamations typically fail to generate financial sustainability for local councils." The Greens' report acknowledged Wellington was found 'unfit' by the NSW government due to its scale and capacity but labelled the reasoning as "arbitrary and ill-defined". The website has also slammed the inconsistencies between the financial figures outlined in the government's proposal and the numbers reported in council's financial statements. The difference between the operating revenue, operating result, asset base and infrastructure backlog have all been highlighted for both Wellington and Dubbo. "The Premier is promising millions of dollars will be saved by making larger councils even though the evidence from previous mergers show they have cost ratepayers millions of dollars to implement," Mr Shoebridge said. "With job cuts, loss of local identity and without any long-term fix for council funding pressures, forced mergers will not make for stronger local councils and this information is being deliberately concealed." The website gave critical information for every council to help residents respond to the proposal, Mr Shoebridge said. "We invite people across the state to log on, get informed and stand up for your local council," he said. Submissions about the amalgamation can be made until 5pm, Sunday, February 28. The Greens' council amalgamation website can be found at www.councilamalgamationsnsw.org.
Greens MP David Shoebridge said forced mergers, like with Dubbo and Wellington will not make for stronger local councils. Photo: CONTRIBUTED
Potential savings from an amalgamated council have been inflated and academic opinions have been ignored, according to Greens MP David Shoebridge.
The local government spokesperson said the Baird government was pushing for forced amalgamations across the state, without releasing any of the financial reports it was relying on.
In response, the Greens have launched a council amalgamation website to detail the financial, social and democratic impacts on each local government area.
The Dubbo and Wellington breakdown states the KPMG study "inflates any potential savings from future contracting arrangements in amalgamated councils, especially given the councils already enter into many contracts through [Orana] Regional Organisation of Council contract tenders when there are identifiable economies of scale from doing so".
The study also grossly underestimated the likely costs to councils from renewing each council's IT infrastructure following the merger, according to the report.
"[KPMG] ignores the large loss of council staff time and resources in implementing an unwelcome and often unsupported amalgamated council, and has no regard to the informed academic opinions based on detailed empirical studies of past council mergers that proves forced amalgamations typically fail to generate financial sustainability for local councils."
The Greens' report acknowledged Wellington was found 'unfit' by the NSW government due to its scale and capacity but labelled the reasoning as "arbitrary and ill-defined".
The website has also slammed the inconsistencies between the financial figures outlined in the government's proposal and the numbers reported in council's financial statements. The difference between the operating revenue, operating result, asset base and infrastructure backlog have all been highlighted for both Wellington and Dubbo.
"The Premier is promising millions of dollars will be saved by making larger councils even though the evidence from previous mergers show they have cost ratepayers millions of dollars to implement," Mr Shoebridge said.
"With job cuts, loss of local identity and without any long-term fix for council funding pressures, forced mergers will not make for stronger local councils and this information is being deliberately concealed."
The website gave critical information for every council to help residents respond to the proposal, Mr Shoebridge said.
"We invite people across the state to log on, get informed and stand up for your local council," he said.
Submissions about the amalgamation can be made until 5pm, Sunday, February 28.
The Greens' council amalgamation website can be found at www.councilamalgamationsnsw.org.
