Mega council merger doomed

Written By Unknown on Selasa, 22 Januari 2013 | 14.56

TASMANIA looks set to retain 29 councils, with indications the push for voluntary amalgamations is doomed.

More than a year after a $300,000 report commissioned by the Southern Tasmanian Councils Authority recommended a mega merger in the Hobart region, member councils have vetoed the idea.

The STCA wants all 12 member councils to officially state their position on amalgamations at a meeting next month. But discussions with the Mercury reveal all except for Hobart have made a decision on the issue, with overwhelming disapproval for the idea. The STCA report by local government general manager Jude Munro and Stephen Hains, along with nationally recognised leading economist Saul Eslake, recommended the creation of a Greater Hobart Council incorporating Hobart, Glenorchy, Brighton and urban parts of Clarence and Kingborough councils, with no change to rural councils.

It found the mergers would lead to efficiency gains of up to 15 per cent in service provision, better infrastructure and greater capacity from local government.

Hobart Lord Mayor Damon Thomas, who is also chairman of the STCA, said his council was yet to confirm its stance on amalgamation.

Despite this, he supported moves for the STCA to formalise a response to the Munro report.

"It's time we actually come up with a final response for the community after that report," he said.

"But at the end of the day, there have been very few successful amalgamations in Australia that haven't been led or dictated by a central authority (like the State Government).

"There's no use (Hobart) saying to Glenorchy or Clarence let's all get together, unless they genuinely believe that's in their best interests."

Glenorchy Mayor Stuart Slade said there were concerns amalgamation could lead to a loss of identity and local services.

However he said they were keen to further share services with neighbouring councils, such as rubbish collection, road repairs and the bulk purchase of goods like stationery.

"People in Glenorchy and people in Hobart, we do things differently," he said.

"We have our own identity now. It is an identity where we have our values, our services, our recreational pursuits, that are totally different to what's happening in other councils in the greater Hobart area."

Clarence council rejected the idea of forming part of the Greater Hobart Council.

The eastern shore municipality has instead started talks with neighbouring Sorell Council, in consideration of a possible merger.

Clarence Mayor Doug Chipman said his council found there was no justification for a merger with Hobart.

"The big question in my mind is are the ratepayers going to be better off and therefore we're looking at the economics of (a merger with Sorell), the governance of it, we're looking at the asset management and an overall look at all of council's activities," Ald Chipman said.

Sorell Mayor Kerry Vincent said the two councils had formed a working group to investigate possible benefits and expected to make a decision in coming months.

"The potential is not so much in the reduction of rates, but efficiencies in the future," he said.

Brighton Council also rejected suggestions it should merge with Hobart.

"We felt that the ratepayers of Brighton would be financially disadvantaged, (that) they would be paying much higher rates," Mayor Tony Foster said.

But council's decision was at odds with Cr Foster's personal stance on the issue.

"I've been a supporter of a Greater Hobart Council for many, many years. I'm on the record with that," he said.

Kingborough Mayor Graham Bury said there wasn't enough information on the economic benefits of a super Hobart council to make an informed decision.

"The idea of a Greater Hobat Council has really fallen over, I reckon, as a proposal," he said.

"A more natural relationship for us would be with the Huon Valley Council and we're very happy to look at shared services with all other councils."

But Huon Valley mayor Robert Armstrong said council rejected the idea because of Kingborough council's high debt level.

"Our position is that we stay as we are. But if we couldn't stay by ourselves we would support the motion for a more localised amalgamation to create one big rural council south of Hobart," he said.

Regional councils including the Southern Midlands, Central Highlands and Glamorgan Spring Bay Council supported the report's suggestion that rural councils remain independent.

Many were already sharing services and equipment where possible and were keen to explore further cost saving opportunities that did not involve amalgamation.


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