Sharing more resources could save northern Tasmanian councils millions of dollars and ease rate rises.
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KPMG released a Shared Services Study investigating how eight councils in the state’s north could better share resources and services to improve their performance and capacity.
Amalgamations and boundary readjustments were also discussed at the meeting of mayors and general managers on Friday afternoon, although they did not feature in the report.
City of Launceston Mayor Albert van Zetten said the report showed possibilities of savings, which depended on the “good will” of all the councils.
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The region covered by West Tamar, George Town, Dorset, Break O-Day, Northern Midlands, Meander Valley, Flinders and Launceston City councils represents about one third of Tasmania’s land mass and population.
“Rates would obviously not have to go up as significantly and that’s something that’s very important … if we can have savings in other areas, we can then ensure that maybe we can just reduce the rates,” Cr van Zetten said.
He did not rule out amalgamations or readjusting boundaries.
“I’m not going to hide from that, but this is a first step, it’s a good start,” Cr van Zeeten said.
The report found by expanding resource sharing and starting joint contracts, about $3.3 million could be saved each year
Councils and general managers needed to start to discuss which areas they wanted to work together on, he said.
“By looking at the areas where we do thing a bit different, we could work together better.”
Collectively, the northern councils employ 854 full-time equivalent staff, of which more than half, 431, are employed by City of Launceston.
West Tamar Mayor Christina Holmdahl said she was very confident resource sharing could save the council money.
Her council and George Town Council both supported amalgamation with a feasibility study anticipated to finish by the end of the month, she said.