Business SA calls for Adelaide metro council amalgamations

Metro Adelaide councils should be cut from 17 to 10, says the state’s peak business group, to save $35m. See the map showing the suggested boundaries. TAKE OUR POLL

• Business SA calls for road upgrades, payroll tax tweaks

Metropolitan Adelaide councils should be reduced from 17 to 10 to achieve greater efficiencies for businesses and residents, says the state’s peak business group.

Business SA has renewed its longstanding calls for council mergers by drawing up a map showing suggested boundaries as part of a State Budget wishlist.

It says the new structure could comprise of an Adelaide CBD council, three northern councils, four southern councils, an eastern council and a western council.

The organisation’s submission to Treasurer Rob Lucas says councils are the level of government with which people interact with most frequently and they “deserve efficient and appropriately-sized local governments”.

The proposed new council boundaries for metropolitan Adelaide, as suggested by Business SA.

“The number of South Australian councils, particularly metropolitan councils, is disproportionate to our population, creating duplication and driving up costs,” it says.

“Significant efficiency and savings gains could be achieved through council amalgamations.

“Amalgamations would increase economies of scale, allow councils to operate more effectively and strategically as municipal boundaries are reduced, and will increase bargaining powers for councils in procurement.”

Business SA says SA councils charge the highest rates per capita in the country, with increases growing faster than the national average.

Research commissioned by the Property Council in 2016 found almost $35 million could be saved annually if metropolitan councils were reduced to nine.

This included savings from cutting the number of mayors, councillors, chief executives and executives.

“Council resources should be used to meet the current and future needs of businesses and households in the community,” says Business SA.

“Ratepayers should not see their rates spent on inflated council employee salaries instead of local community investment and development.”

Business SA industry and government engagement executive director Anthony Penney said council mergers could either be forced or voluntary.

“Voluntary is probably the way to go but there needs to be some sort of incentive or carrot to get councils to come to the table,” he said.

“As the saying goes, turkeys don’t vote for Christmas.”

Mr Penney said it was important for South Australia to reduce costs such as rates to ensure the state remained attractive for businesses to “start up, operate and ultimately grow”.

The boundaries for the 10 new councils suggested by Business SA had been based on major roads and arterial routes within existing council boundaries.

The State Government currently is calling for public feedback on possible reforms to local government within SA.