TREASURER Andrew Constance has retreated from comments he thinks the state government will need to take "the stick" to councils that are reluctant to merge.
However, in an interview with the Leader this week, Mr Constance insisted the present situation could not continue because councils across NSW were "bleeding $1 million a day".
Speaking at a business forum last week, Mr Constance said his personal view was there "should only be five councils at best" in Sydney.
Referring to the government's "Fit for the Future" policy, that includes financial incentives for councils to merge voluntarily, he said, "I hope this works".
"I think eventually we're going to have to pull out the stick. We have offered the carrot first up; we're going to have to pull out the stick."
This week Mr Constance would not say whether he thought the three St George councils should merge or, as proposed this month, Rockdale should join with Marrickville and Botany Bay councils.
"No, I am not going to elaborate further," he said. "It is up to local government to talk to their communities.
"We have provided $1 billion in incentives, which is a big pot of money, and I am keen to see local government embrace that opportunity."
Asked if he stood by his comments about the need for "the stick", he said he was "quietly confident we will see local government work hard to prepare submissions for the government by the middle of next year".
He said local government is bleeding $1 million a day so the minister [Local Government Minister Paul Toole] is working very closely with councils and shires to see what could be done so they are "fit for the future".
"It is very much in the hands of councils.
"This is not just about council boundaries," he said. "It is an opportunity for local government to look at IT, billing systems and opportunities to deliver economies of scale for the benefit of ratepayers."
DOUBTS REMAIN
Opposition spokeswoman on local government, Sophie Cotsis, said Mr Constance had ‘‘let the cat out of the bag’’ regarding the government’s real intentions.
‘‘There are 41 local councils in the Sydney metropolitan area, meaning councils would face the chop to create Mr Constance’s five monster councils with nearly one million residents each,’’ she said.
Premier Mike Baird said Mr Constance had expressed ‘‘a personal view’’, which was not that of the government.
Mr Baird said councils had been offered a range of incentives, and it was ‘‘over to them’’.
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