Voluntary council amalgamations are a step closer after two memoranda of understanding were signed on Tuesday.
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The memoranda would see studies conducted on the outcomes of voluntary amalgamation and strategic shared services for two southern council areas.
Those councils are:
Greater Hobart councils: Hobart City, Clarence City, Glenorchy City and Kingborough Councils; and
South East councils: Clarence City, Sorell, Glamorgan-Spring Bay and Tasman councils; including a subset of options including Clarence City, Sorell and Tasman councils; Sorell and Tasman councils; and Sorell, Glamorgan Spring Bay and Tasman councils.
In a release, Planning and Local Government Minister Peter Gutwein said it is expected that Northern and Cradle Coast councils will follow suit.
"This work is well underway and I encourage the North and North Western councils to finalise their proposals as quickly as possible," Mr Gutwein said.
"To progress the MoUs, proposals with shared services must incorporate initiatives that involve significant business activities, both small and large.
"They must be supported by a formal agreement between the participating councils and have a sound governance structure in place.
"We must look genuinely and openly at significant change, not for the sake of change itself, but because we owe it to the ratepayers and to the broader community.
"With the completion of the feasibility studies, there will be a firm foundation to consider the next steps in improving the efficiency and effectiveness of local government in Tasmania and see it play its part in making Tasmania the place to live, work and invest."