Jeff Kennett is a colourful political figure - but when he makes a comment most people think he is worth listening to. He has warned New South Wales premier Mike Baird of a " gathering council Tsunami " of dysfunction that will deliver a huge financial burden on the state's doorstep.
The NSW Treasury Corporation recently conducted a survey of the 152 councils in the state and reported that 34 were sound, 79 were in a moderately sustainable position - and 39 were weak - or very weak. The problem is that council boundaries were set well over a century ago and a vast population change and style of living has changed demographics and needs. We are still trying to cram the services of the past into unrealistic council structures.
Kennett was a very successful premier of Victoria and in 1994 that state reduced it's 211 councils to just 78. If NSW does not bite the bullet and reform local government is is inevitable that council failures will force the state government to appoint administrations - and pickup the tab for keeping services running.
That presents a problem for Mike Baird's government. Barry O'Farrell won office on a promise of no council forced amalgamations in the life of this parliament and Baird will be expected to honour that promise.
Ratepayers will certainly resist amalgamations and in particular, getting elected to council has long been a stepping stone towards a seat in state or Federal politics - and for those who wear the mayoral chain - it is a vast elevation in social standing in their community.
The problem is that in even the best run NSW councils there is an ever growing infrastructure backlog and a renewal gap to bring buildings and structures up to standard and this is now at a mind blowing deficit of $ 7.2 billion. Rate rises are pegged to less than the cost of living - and consequently all councils are slowly going backwards unless they can achieve cost savings - and the only logical means of doing that is a more efficient use of existing resources in a bigger area.
Local government is fast becoming the " sick man " of national finance. The Feds are financed by income tax and the states get the benefits of the VAT - but councils are starved of income by way of restrictions imposed from above. At the same time, the other two tiers of government are constantly shedding functions and making them council responsibilities, without providing funds to alleviate costs.
Mike Baird has a new headache waiting in the wings with the need for council reform and at the same time ICAC is cutting a swathe through both sides of politics by uncovering scams designed to hide donations needed to fund political election campaigns.
It seems that council amalgamations will be an item high on the agenda when the issues are put before the public in the run up to next years state election !
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