The mayors of four Northern councils say they are against the City of Launceston's proposal for a Greater Launceston Metropolitan Council amalgamation.
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Meander Valley mayor Wayne Johnston said he was disappointed there had been no regional consultation or prior discussion with the councils involved.
"We all want viable and focused local government and there is certainly room for a new model and reform, but a 'big is better' focus is too narrow," he said.
One of the main concerns raised by members of the City of Launceston council was that they were at a disadvantage due to "spill-over effect". That takes place when services are used by residents from neighbouring municipal areas without any financial contribution. The costs borne by ratepayers and avoided by the residents of other municipal areas are estimated to be in excess of $4.2m annually.
However, Cr Johnston said those effects occurred along every council boundary in the region and could equally be described as being mutually beneficial.
"Meander Valley, like other Launceston satellite councils, contributes its fair share to regional initiatives and we do not always get a direct benefit ... we pursue a shared interest," he said.
"Brisbane is the largest local government in the southern hemisphere and they still have the same issue with their neighbouring councils ... size doesn't matter ... that said, Meander Valley would be happy to absorb Launceston, as we are after all, at the centre of the entire Northern region."
A similar sentiment was echoed by West Tamar mayor Christina Holmdahl, who went a step further by saying the announcement had caused uncertainty for the 850 plus Northern Tasmanian council employees.
"People who live in the surrounding councils look to the City of Launceston for many things, however, that is a two-way street in which the City of Launceston also looks to its neighbours for sustainability and vibrancy," she said.
"This is a normal and common situation, it's the interdependence of the region."
Northern Midlands mayor Mary Knowles said Launceston wanted to create a bigger metropolitan municipality by usurping parts of her council's area, including Perth, Launceston Airport, and the adjacent business and industrial precincts.
"This is an audacious power play to take over some of our most valuable and important assets, while pushing some of its own costs onto our ratepayers," she said.
"If the bid was successful it would severely reduce our asset and rates base and lead inevitably to an increase in rates for our residents."
Cr Knowles said the submission included a list of assets and services that the city provided, but left out any analysis of the revenue and other benefits those assets attracted.
She also said there was no clear evidence identifying who actually used them.
These statements come days after George Town mayor Greg Kieser labelled the proposed idea "laughable".
"Based on the little we know of the thinking that has gone into this preposterous idea, we have severe reservations," he said.
In response to the feedback, Launceston mayor Albert van Zetten doubled down on the proposal.
"In preparing its 30-page draft submission, the City of Launceston has examined a range of factual data including population size, rates revenue, asset depreciation, operating grants, employee expenses and much more ... I encourage people to read the evidence-based submission which is available online as part of the meeting agenda documents," he said.
The proposal is part of a state government review into the effectiveness of Tasmania's local government structure and services.
Its endorsement is set to be formally considered by members of the council during their fortnightly meeting on Thursday.
If approved, it would enable the council to gain control of key business, as well as industrial and residential precincts in other municipalities, while also shifting its own rates costs onto neighbouring councils.
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