The state government has refused to rule out the possibility of forced council mergers if it is re-elected next month.
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Premier Mike Baird had previously promised that the government would not force councils to merge.
Councils across NSW are completing self-assessments as part of the Fit for the Future local government reforms.
But Local Government Minister Paul Toole refused to confirm on Sunday that this promise would extend into the Baird government’s second term, if it was re-elected on March 28.
The assessment process will identify changes that councils should make to become financially viable for the future. Maitland City Council and Dungog Shire Council are in the early stages of discussions about a possible merger.
Mr Toole’s office did not rule out the possibility of forced mergers after the election, when the Mercury asked yesterday.
Instead, a spokeswoman for the minister said there was $1 billion available to help councils make necessary changes to become Fit for the Future.
“Local communities deserve to know how their councils plan to keep delivering for them, not just today, but in 20 years’ time,” she said.
“Right now, the local government sector is losing more than a million dollars a day.
“This year, we have seen 23 councils apply to IPART [Independent Pricing and Regulatory Tribunal] to lift rates above the normal cap – simply raising rates is not the answer to creating a sustainable sector.
“Councils that choose not to participate in the Fit for the Future process will exclude their communities from the government’s $1 billion incentive package, including access to low-interest finance to invest in local infrastructure.”
Maitland councillor and independent state election candidate Cr Philip Penfold said he believed the state government wanted Maitland and Dungog to merge.
He said he would be willing to work toward a merger if both councils agreed, but did not want to see either party forced into an amalgamation.
“Our councils are in early stages of talks and we need to wait,” Cr Penfold said.
Councillors voted last month to begin discussions with Dungog council about a possible merger.
At the time, many Maitland councillors expressed concern about such an amalgamation, given Dungog’s comparatively low rates, its $42 million road infrastructure backlog and Maitland’s seven-year cummulative annual rate rise, which was approved last year.
