State Government won’t support forced amalgamation of councils, sticks to rate-capping policy

FORCED council amalgamation won’t be pursued by the State Government, despite new laws set to streamline municipal boundary changes.

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FORCED council amalgamation won’t be pursued by the State Government, despite new laws set to streamline municipal boundary changes.

The Property Council of Australia says new Local Government Minister Stephan Knoll should use the new legislation, which comes into effect on January 1, to look at reducing the number of councils in the state from 68.

“Put simply, recasting council boundaries needs to be considered to ensure every dollar of ratepayer money is wisely spent at a time when our state’s economy is struggling,” executive director Mr Gannon said in a letter to Mr Knoll.

“To encourage economic development, our local tier of government must be as efficient as possible.”

The new laws will allow boundary change proposals to be initiated by just one council, or the Minister for Local Government. It also will establish the Local Government Grants Commission (LGGC) — an independent body to undertake the assessment of proposals, conduct investigations and make recommendations to the Minister for any proposed boundary adjustment and or amalgamation.

Property Council executive director Daniel Gannon.

Local Government Minister Stephan Knoll.

Ahead of the new system, the commission is in the process of drawing up the guidelines for future adjustments and will ask councils whether they are considering any boundary changes.

A State Government spokesman told The Advertiser this process would not include any amalgamations outside of council-initiated ones.

He said, rate capping policy would be the main driver of easing ratepayer costs.

“The State Government does not support the forced amalgamation of councils and is looking forward to councils using the new boundary change legislation to help drive better services and lower costs for ratepayers,” he said.

“The State Liberal Government’s rate capping policy will ease the cost of living pressures for South Australian families and households and help to keep business costs down.”

In 2016 a report commission by the South Australian chapter said a reduction in SA councils from 68 to 32 across the state would deliver savings to councils and the community of around $65 million per annum, which would result in a total benefit of $505 million.