Tuesday 18 August 2015

A " Shotgun " Wedding !

The 152 local councils that exist in New South Wales are a hangover from a distant era when each village was responsible for keeping it's roads in order, finding somewhere for citizens to dump their rubbish - and organizing  the collection of "nightsoil " in that era before sewerage.

The vast majority of councils are hovering on the verge of bankruptcy.  Their rate income is pegged to the inflation level and works backlogs are reaching unsustainable proportions.  The logic of amalgamations are beyond question, but the men and women who wield power and prestige as mayors and councillors will fight tooth and nail to prevent that happening.

Gaining a seat on council has long been the path of social elevation, and it has also served as a way to higher office.  Serving on council puts a name and face before the public and that often leads to a successful bid for office in the state or Federal government.

Successive state governments have urged councils to at least investigate the savings to be made by sharing machinery and spreading the administration load, but to no effect.  This rejection of amalgamation seems to be fairly evenly spread amongst ratepayers. Many fear that enlarging council areas will install an uncaring bureaucracy - and opt for the status quo  !

In a brave move, the New South Wales state government is proposing to crack the whip and force amalgamation - by decree !   A plan is being considered to arbitrarily sack all councils and appoint administrators to carry the load until the next scheduled local government elections to be held in 2016.  Ratepayers will then be called on to vote for the bigger council covering their area, and their former mayor and councilors will be encouraged to stand for office.

That is a risky political move.  It would be nice if both sides of politics could agree and back the plan - but that is unlikely.   If council amalgamations split along the political divide we are sure to be inundated with hysterical claims that will stampede the public, and yet if nothing is done it is inevitable that the misery that will follow a council financial collapse somewhere in this state will bring home what is involved to ordinary ratepayers.

The plan being considered would reduce 152 existing councils - to just fourteen. Sheer economy of scale comes into the picture.  A significant portion of the rates burden collected by small councils is absorbed in that category called " administration " and then there are the "big ego " projects beloved by so many of those who wear the mayoral chains.

Right now the bean counters are busily counting heads.  A lot will depend on how the political question is settled.  Amalgamation by forcing a "Shotgun wedding " is a fairly brutal way of settling the issue and the government will only take that option if it feels it will be vindicated at the ballot box - and the opposition will face that same uncertainty.    It is possible that a "deal " may be reached - politically !

Of course, the other states will be watching this with more than passing interest.   If our biggest state manages to resolve it's councils  problem it is likely that resolution will be copied elsewhere.   To a degree, this proposal is purely "kite flying ".   From a political point of view it is wise to see what flak such an idea attracts and determine if public minds can be swayed in favour - before committing to a firm course of action.   With that in mind, expect the squawks and squeals of mayors and councillors threatened to be displaced to rise to a crescendo !

The reaction of the media may well decide the issue !

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