A call from Premier Mike Baird for councils to consider mergers has not changed the opinion of the Maitland mayor.
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Council amalgamations were on the agenda at this week’s Local Government NSW Annual Conference in Coffs Harbour, which Cr Peter Blackmore attended.
Fairfax Media reported this week that Mr Baird, in his speech at the event, urged councils to think of their communities and consider mergers.
The government has offered $258 million in incentives to councils that choose to merge, as part of its Fit For The Future local government reforms.
But the Coalition and Labor have both committed to a policy of no forced amalgamations for councils.
Cr Blackmore said Mr Baird’s speech did not change his position on whether a merger between Maitland City Council and Dungog Shire Council would be viable. He said the ball was still in Dungog’s court.
Cr Blackmore said talks had begun between Maitland City and Dungog Shire about possible future directions for each region, but the issue was complex and would require ongoing discussions.
“We’re not going out there to make the first move,” he said.
“Dungog has to look at itself and see whether it is financially sustainable.”
The shire has a road work backlog of about $42 million, which would need to be addressed in any merger talks.
Cr Blackmore said if a merger took place, any extra financial burden for Maitland should be met by a rate rise for Dungog residents or state government funding.
“We may need to go to the Premier and say we need some incentives,” he said.
“It’s not fair for the ratepayers of Maitland, considering we have gone to IPART for a seven-year rate rise.”
Dungog general manager Craig Deasey has confirmed that he met with Maitland general manager David Evans earlier this month for a preliminary conversation about the Fit For The Future reforms, but would not be drawn on the details.
Local Government Minister Paul Toole told the conference this week that a third of NSW councils faced financial problems.