A MERGER with Gloucester Shire Council would leave both areas in a worse financial position, according to figures presented to the community at a meeting hosted by Great Lakes Shire general manager Glenn Handford in Forster on Thursday.
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An independent review of local councils commissioned by the State Government released in October last year showed that most local governments in NSW were in a deteriorating financial position and that, west of the Dividing Range, most councils were going to struggle to remain viable.
Great Lakes was one of 28 large rural councils found to be sustainable in the long term, but despite its moderate (sustainable) rating, Great Lakes has been asked to consider merging with Gloucester Shire, which has a bleak financial outlook.
Using information gathered by independent consultants Morrison Low, Great Lakes general manager Glenn Handford argued that putting the two council areas together would not result in a stronger council.
“As a result of this process, we’ve had a stack of information coming back that has been independently audited. This is not Great Lakes Council putting forward its own view of the world,” he said.
“Morrison Low told us that they rarely see a situation where both councils are worse off. But this is one of those cases. Even Gloucester goes backward.”
- Great Lakes Council GM Glenn Handford.
In infrastructure terms, an independent Great Lakes Council would need an extra $1m to spend every year for five years (and $600,000 a year after that) to address its backlog. In a merger with Gloucester, the amount needed would be $8.2m every year for five years, and $4.8m every year after that.
“That number ($1m a year for five years) is doable for us. Those other numbers are pretty horrible – for them (Gloucester) and for us,” Mr Handford said.
All NSW councils have been told to demonstrate that they are ‘fit for the future’ by submitting proposals by June 30 this year.
While Great Lakes Council has yet to formally vote on its preference to merge or not merge with Gloucester shire, it has made no secret of its preference to remain independent.
Last week, Gloucester Shire Council voted for its intention to fight to remain independent. Gloucester’s bid to address its infrastructure woes led to a 44 per cent rate increase being approved by the Independent Pricing and Regulatory Tribunal (IPART) last week.
That news brought groans of sympathy for its ratepayers from the crowd at the Great Lakes public meeting.
NSW councils have been offered $5m as a carrot to amalgamate, but Mr Handford said changing systems and staffing arrangements would be an immediate $6m burden, while the long term cost of the change could be as much as $30m.
“Morrison Low told us, and they’ve looked at many amalgamation cases in NSW, that they rarely see a situation where both councils are worse off. But this is one of those cases. Even Gloucester goes backward,” Mr Handford said.