The future of Palerang Council is unknown as the NSW Government decides which councils will be amalgamated in a push for more efficiency. Last Tuesday when the IPART ‘Fit for the Future Report’ was released, the Premier urged councils to consider merging voluntarily, with a big cash carrot, or have it imposed upon them.
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Palerang was also in the middle of holding community consultations around the shire last week on a Special Rate Variation (SRV) proposals.
While Palerang was deemed ‘Not Fit for the Future’ by IPART. The IPART Report notes that “In relation to Palerang and Queanbeyan, we consider a merger would provide greater benefits for Palerang and Queanbeyan, than each council standing alone.”
“Both Palerang and Queanbeyan were assessed as meeting the financial criteria overall. However, we note Palerang meeting the sustainability criterion is based on the approval of an SV of 24% above the rate peg over five years (40% including the rate peg). In addition, Queanbeyan meeting the financial criteria is based on the assumption of transitioning to its Regional Services Model, which it has assumed would include significant efficiency gains and a revised organisational structure.”
NSW Premier Mike Baird and Local Government Minister Paul Toole proclaimed that there would be a $2 billion community windfall by merging unfit councils.
The IPART report found reducing waste and red tape through local government mergers could free up close to $2 billion over the next 20 years for NSW ratepayers, which could stabilise council rates and fund better services and new infrastructure for communities.
The NSW Government also announced a new Stronger Communities Fund, providing each new council up to $15 million to invest in community infrastructure projects such as sporting fields, libraries, and parks and funding of up to $10 million for each new council to ensure ratepayers do not pay for the up-front costs of merging. This funding will be available to those mergers agreed to by councils and the NSW Government.
“With 60 per cent of councils not fit for the future, this IPART report shows the situation is now critical and that action is needed to ensure ratepayers get value for money and the services and infrastructure they deserve” they said.
The NSW Government will now give councils a 30-day consultation opportunity to inform the Government’s position on local government reform and respond to these IPART findings.
Local Government NSW President Keith Rhoades said the IPART assessment of whether Councils were fit or unfit for the future was “a farce designed to justify longstanding plans to force council amalgamations.”
Clr Rhoades said “Minister Paul Toole has consistently said he would wait for the findings of the Independent Pricing and Regulatory Tribunal (IPART) before making any amalgamation decisions.”
The Member for Monaro John Barilaro said the NSW Government has made a three-point guarantee to give regional communities extra confidence that reforms will deliver tangible benefits and stronger councils: 1.Mergers will reduce waste and red tape, 2. All the savings will go to: Better services, More infrastructure, or lower rates and 3. Local representation will be maintained.
“I urge Queanbeyan, Palerang, Cooma, Bombala and Snowy River Shire Councils to consider these IPART findings for their council and hold discussions with neighbouring councils and the NSW Government so they can deliver better value for money for ratepayers across the region now and into the future," Mr Barilaro said.
LGNSW President Cr Keith Rhoades said it has never been more critical for councils to go back to their communities to work out their next steps.
The timeline set out for the FFTF program identifies September 2016 for the Local Government elections, New Local Government Act, Regional Joint Organisations established and Mergers completed.
On Friday Palerang called an Extraordinary Meeting for Thursday 29 October in Bungendore to discuss its response and also to pass the Financial Statements to 30 June 2015 before sending them to the auditor.
At the Extraordinary Meeting Palerang Council will consider options including
* Maintaining the current stand-alone position based on community feedback
* Merge with one or more of its neighbour Councils.
* In consultation with the community, develop a proposal where parts of Palerang are transferred to other Councils based on communities of interest.
Palerang Mayor Pete Harrison said "The positive aspect of the IPART report is that it acknowledges that Council's Improvement Proposal meets all financial benchmarks. In that context, it declares that Palerang Council is financially sustainable. On the negative side, however, the report declares Palerang Council 'not fit' because it failed to meet the 'scale and capacity' benchmark, and this simply by rejecting the proposal to merge with Queanbeyan. There is a disappointing element of predetermination in this pronouncement as there are councils of similar size, structure and capability that were determined to have met the 'scale and capacity' benchmark simply because they were not required to consider a merger in the first place."
