Savings of more than $390 million could be made over 20 years if four Southern councils were to merge, a new report has found.
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An SGS Economics and Planning report into the feasibility amalgamations, released on Wednesday, looked at the costs, losses and options associated with potentially merging Clarence City, Glenorchy City, Hobart City and Kingborough councils.
The report looked at the ramifications of taking no action, and of merging all, or some of, the councils.
“A merger of all four councils would provide the best overall outcomes, but also attracts substantial complexities,” the report said.
But no action can be taken while the Glenorchy City Council aldermen remain suspended for six months.
Local Government Minister Peter Gutwein said some of the options could produce a net financial cost to councils, but indirect economic benefits to communities.
“For resource sharing or voluntary amalgamation to work, it must be driven by local communities and by the councils themselves,” Mr Gutwein said.
“A decision on progressing consultation with the Glenorchy community will be made once the board of inquiry report has been considered.”
Launceston Mayor Albert van Zetten said in the North, he supported resource sharing by councils.
“All councils in Tasmania have been approached by the government to look at either amalgamations or resource sharing,” he said.
“If [the report] shows there’s dollar values to be saved then I think it’s something to look at.”