The state government needs to take a larger role in enforcing local government reform, according to two peak business bodies.
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Launceston Chamber of Commerce executive officer Neil Grose and Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said the state government should review its policy of not forcing council amalgamations.
However, Local Government Association of Tasmania president Doug Chipman said councils were taking steps to improve efficiency, without merging.
“We recognise the need for greater efficiency and to look after our communities,” he said. “Local government reform is already happening through greater shared services and greater co-operation, which is also evident throughout the sector.”
The issue of council amalgamations has been ongoing for several years, with the government offering grants to councils to model the effects of potential amalgamations in 2015.
The George Town Council and West Tamar Council recently decided not to pursue a merger, after George Town councillors voted against moving the process forward.
Many of Tasmania’s smaller councils do not have the economy of scale to be financially sustainable.
- Launceston Chamber of Commerce executive officer Neil Grose
Local Government Minister Peter Gutwein has repeatedly said the government would not force councils to merge through involuntary amalgamations.
Mr Grose said voluntary amalgamations had failed.
“The government’s policy [of voluntary amalgamations] has merit but, without a timeline for results, any real reform is unlikely,” he said.
“Resource sharing models show that bigger councils can deliver significant benefits to ratepayers and to local business.
“Many of Tasmania’s smaller councils do not have the economy of scale to be financially sustainable.”
Mr Bailey said the government must take leadership in reforming council operations, citing the failed merger between the West Tamar Council and George Town Council as proof the sector wouldn’t reform itself.
“Clearly there are better and more affordable models for local government in Tasmania,” he said.
Mr Gutwein said the government would not force councils to merge.
“While we always encourage councils to investigate resource sharing, it must be driven by local communities and by the councils themselves,” he said. “Other states have tried to impose council reform and failed, because it hasn’t been supported and driven by local communities.”