HURSTVILLE, Kogarah and Rockdale councils have less than a month to decide whether to accept a $25 million ‘‘carrot’’ to merge or possibly be forced together and get nothing.
The three St George councils were judged unfit to stand alone in a report by the Independent Pricing and Regulatory Tribunal (IPART), released on Tuesday.
The Fit for the Future report recommended they merge with Canterbury Council.
Each council was found to have satisfied the financial criteria, consisting of sustainability and infrastructure and service management and efficiency.
However, each had failed to meet the criterion of scale and capacity.
Premier Mike Baird, who described the government as ‘‘the ratepayer’s friend’’, promised new merged entities up to $15 million from a Stronger Communities Fund to invest in infrastructure such as sporting fields, libraries and parks.
In addition, they would receive up to $10million to meet up-front costs of amalgamation.
‘‘We are at the end of the road,’’ he said.
Mr Baird said councils would have until November 18 to consult and respond to the report.
He would not say whether the government would force mergers.
‘‘Clearly we will consider our position on the back of their responses,’’ he said. By the end of the year, every council would have a clear position where it stood, he said.
The government appears to lack the numbers in the upper house to legislate forced mergers, but another mechanism could be through the Boundaries Commission.
Local Government NSW, which represents the state's councils, said the cash offer appeared to be only available to councils who submitted agreed amalgamation plans before November 18.
President Keith Rhoades said Local Government Minister Paul Toole had made it very clear "this is a time-limited carrot".
"Those who don't agree to merge seemed destined to be forced to do so — without financial support," Mr Rhoades said.
The findingsThe report said Hurstville, Kogarah and Rockdale councils had each submitted a proposal to remain a stand-alone council.
"However, we find the councils did not demonstrate that standing alone was as good as, or better than the preferred merger option [recommended by an independent inquiry]", it said.
The report said a merger could assist the St George and Canterbury councils to partner more effectively with government, provide significant benefits to communities in delivering infrastructure consistent with the South Subregion plan, and better manage the Georges River catchment.
"The councils each commissioned a business case of the merger," the report said.
"Based on this model, our analysis suggests the preferred merger could produce benefits of $280 million over 20 years in NPV (net present value) terms. Our independent consultants, Ernst and Young estimated benefits from the merger of $172 million over 20 years in NPV terms."
Kogarah response
Mayor Stephen Agius said, on the basis that IPART had confirmed Kogarah Council, satisfies overall the financial criteria, it was disappointing it had been classified as unfit based solely on population.
"In response to the Premier's instructions it is intended that the matter of amalgamations be considered by council prior to the deadline of November 18," he said.
Rockdale
Mayor Bill Saravinovski said he would ask the council meeting on Wednesday night, October 21, for authority to reopen talks with Hurstville, Kogarah and possibly Botany Bay councils.
Kogarah and Hurstville councils have previously rejected amalgamating.
"While we are disappointed and disagree [with the report's findings] we will be talking to our neighbours to see whether they are interested in a merger," Cr Saravinovski said.
"But, if you don't have someone who wants to walk down the aisle with you, it's a bit hard to get married.
"The government is holding a gun to our head even though I still believe they don't have a mandate for forced amalgamations."
Hurstville
Mayor Vince Badalati was due to propose at last night's (Wednesday) council meeting Hurstville renew talks with Kogarah Council, while not excluding talking with others.
"It is disappointing to have been found fit in all other areas apart from 'scale and capacity'," he said.
Cr Badalati said it was clear from the start that the St George councils would not meet the scale wanted by Mr Baird "so the whole thing has been a waste of time and money".
"They should have been honest from the start that they were going to force mergers," he said.
Do you think the St George councils should merge?
