Here We Go Again

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The situation in New South Wales might well be very different from here in WA - and the report in the Sydney Morning Herald suggests that the financial situation of local government is worse - but the issues are the same.

Those in favour of amalgamations emphasise financial issues - without providing substantial evidence that amalgamations would improve the situation. Indeed, the evidence is that the state government is part of the problem through requiring Councils not to increase rates each year by more than a standard percentage set by the 'Independent' Pricing and Regulatory Tribunal it established in 1977.

Annual Council budgets have been unable to reflect specific local circumstances for 37 years - no wonder they have financial problems and are unable to maintain infrastructure.

The NSW Government is offering financial incentives for amalgamations that far exceed the money made available by the WA Government, but unless it changes the 'rate-pegging' situation any benefit is likely to be short-lived.

Those who oppose amalgamations are concerned about community of interest and the fact that the NSW Government hasn't ruled out forced amalgamations. In that latter respect, the people of New South Wales can take some comfort from the fact that the next State election is due on 28th March 2015 - so it is unlikely that any action will be taken before then.

But the people of NSW need to be aware of the WA experience - electing a Premier who said that there would be no forced amalgamations didn't stop that same Premier from turning a promise into a lie.

Electing a Premier who simply says that he 'hasn't ruled out forced amalgamations' would be tantamount to accepting that forced amalgamations will happen.