It comes after Treasurer Peter Gutwein comments that the Northern councils had only looked at resource sharing, and that the Southern councils could get the upper hand in attracting further population growth and investment.

The Treasurer said he wrote to Northern councils months ago raising concern that Southern councils investigating amalgamation could get a first-mover advantage.

“This has now come to fruition as the South Eastern feasibility study I released last week does demonstrate that real and material benefits are available for the ratepayers who live or invest in this area,” he said.

Alderman van Zetten said he did not think the Launceston City Council would be disadvantaged.

“If the Treasurer is suggesting that without amalgamations, we won't be able to attract state or federal funding, we would be very concerned,” he said. 

He said the council was frustrated at the slow rate of pace of the review of local government services. 

Mr Gutwein said all Northern councils had signed up to a resource sharing study and he expected a report to be finalised by early 2017. 

Alderman Van Zetten said the council would expect that in the future local government boundaries would have less of an influence on business investment, as good business cases should dictate funding.

West Tamar Mayor Christina Holmdahl said the council did not support any voluntary amalgamation.

Dorset Mayor Greg Howard said he didn’t believe councils would risk losing investment, and that the South Eastern feasibility study failed to address representation of municipalities. 

He said he supported the idea of Launceston expanding its reach, with initial boundary adjustments paving the way for West Tamar and George Town to merge into one council, and Meander Valley and Northern Midlands.