IF tax reform is a major headache for the federal government amalgamation is the equivalent for the NSW government. Get it right and people will say about time, get it wrong and there will be hell to pay.
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The truth is we need to see real reform, as opposed simply to change, in both policy areas.
For the Baird government, which has opened up a front on its “raise the GST” campaign, getting it wrong on the amalgamation will be costly come the next election.
Risking a voter backlash over higher rates, lost services and the dilution of representation in vastly bigger council areas is not the sort of chance a government takes unless it has to.
The trouble is that measuring whether councils really are fit for the future is not easy. For starters, councils can make it very difficult for investigators to get an accurate measure on anything, particularly when the value and condition of assets like roads can be changed to make the balance sheet look healthier.
There is also the question of what ratepayers want out of a process which very few, particularly in regional areas, want their councils to enter voluntarily.
At best, ratepayers in bigger centres like Orange are ambivalent about an amalgamation while at worst some in shires and smaller councils are already digging in for a fight.
Many in this group believe that an amalgamation with a centre like Orange will see rates rise as services improve, presumably above what they consider necessary, while their elected representatives will be drowned out in council chambers dominated by city councillors.
The Fit For The Future report being prepared for the government by the Independent Pricing and Regulatory Tribunal won’t win any friends unless it can point to big savings and improved services for all concerned in a proposed amalgamation.
In regional areas like ours it is hard to see the substantial savings which would translate into more moderate rate increases or improved services for semi rural and rural areas.