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The 'visionary' council mergers leave many out in the cold : Comments
By Ben Rees, published 1/8/2007Queensland's new council mergers are a statistical mess for a 'visionary' political system aiming to deliver equitable and just representation.
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I've been examining the situation quite closely, and I've been getting steadily more alarmed.
For starters, the 'cost-saving' reasoning behind these mergers is seriously flawed and the State has been misleading on a number of key areas.
The PriceWaterHouse Coopers report that the State has been using to justify the statement "43 per cent figure of QLD councils are distressed (read the report, it actually states thier 100 council analysis found 10-30 per cent in their findings Australia wide, which is broadly near state-based 43 per cent reports... the point is, according to the report it could be as low as 10 per cent).
More importantly, this report doesn't mention amalgamation anywhere in its recommendations, only that other states have achieved some efficiency gains through it. In the recommendations, it does speak of economies of scale, but recommends sharing of services and state purchasing policies.
Here's a section the State's been quiet on:
"Amalgamating these small rural councils, while improving the general financial health of councils, will not be a panacea to the ongoing structural concerns facing these councils. Hence, any amalgamation must be accompanied by other reforms to increase efficiency and effectiveness."
What other reforms?
Anyone can quote reports - fair enough. But this is the report the State is using to justify this? Where is the report which says we should charge ahead with amalgamations if this is the one?
The situation gets worse... there aren't reports that say amalgamation is a good idea, though there is a report, commissioned by the Federal Government three years ago - the Hawker Report, which points out that local government's financial problems are caused by cost shifting from upper levels of government - mainly the state.
It states that councils have been getting less money every year for 20 years, but asked to do more. This is the problem, it points out.
I'm open to being persuaded, but all the evidence points to this being a catastrophically stupid idea.