Fit for the future assessment finds peninsula councils “unfit”

The amalgamation watchdog has slammed all three peninsula councils as “unfit” to operate independently.

The amalgamation watchdog has slammed all three peninsula councils as “unfit” to operate independently.

The long-awaited report from the Independent Pricing and Regulatory Tribunal was released yesterday and labelled 152 councils across the state as either “fit” or “unfit”.

Manly, Warringah and Pittwater were three of 29 metro council’s deemed “unfit”. In order to pass the assessment, councils needed to meet the criteria of scale and capacity and financial sustainability.

While all three northern beaches councils failed the scale and capacity criteria – which is purely based on population – their financial sustainability was deemed sound.

The premier was met with opposition to council amalgamations at a recent event in Manly. Picture: Toby Zerna.

Manly Council general manager Henry Wong said the council’s financial sustainability was more important than population.
MANLY COUNCIL SUBMITS PLAN A AND B ON AMALGAMATION

“We view our financial capacity­ and ability to deliver­ infrastructure as well as all the other efficiency measures as a very important measure for local government,” he said.

“Population varies up and down and just because you have scale, doesn’t mean you’re sustainable.”

Mayor of Manly Jean Hay said the council was never in doubt that they were financially fit.

“We’ve always known that we would fit the criteria financially,” she said.

While the IPART report has not made explicit recommendations on merger options it has backed the calls from an earlier report by Graham Sansom for one northern beaches council.

Warringah Mayor Michael Regan has praised the report by IPART.

It also said the Sansom report was used as “the preferred starting point” for its analysis.

COUNCIL LEFT RED FACED OVER REPORT

In it’s summary, the IPART report said all three northern beaches councils did not demonstrate that standing alone was as good as, or better than merging.

The report goes on to say: “We consider a merger would improve the capacity of the councils to partner more effectively with governments and undertake better strategic planning and development for the Northern Beaches region.”

The report has also vetoed the option put forward by Pittwater and Manly to split Warringah in half, creating a mega Manly and mega Pittwater council.

Warringah Mayor Michael Regan has hailed the report “a victory for common sense and the community.”

Warringah has always pushed for amalgamation with Manly and Pittwater, and Mr Regan said he would be approaching them again to ask to voluntarily join together­, which would unlock an extra $15 million slice of cash they wouldn’t get if forced.

“Warringah Council just won Local Government’s most coveted award in the Bluett, and the finding that we are not fit, in no way reflects­ our delivery of services. It just means that we don’t meet the desired scale and capacity,” he said.

The premier was unable to answer questions on how the government would force through amalgamations once the deadline was up. Picture: Stephen Cooper.

“I look forward to working with the Mayors of Manly and Pittwater to create a sustainable, local government organisation for the future­.

“I feel excited that we, together, can create a vision for the Northern Beaches community for the next 50 years.”

Pittwater Mayor Jacqui Townsend said she and the community were disappointed to learn of the findings. The council would have a conversation on the outcome and see whether more discussion on a merger should take place, she said.

FAILED COUNCIL AMALGAMATIONS COSTLY FOR COUNCILS

“I’m not supporting (amalgamation) one way or another but we have an obligation­ to pass the information on to our community for further discussion,” she said.

“I don’t believe we can ignore­ the IPART report, or the Premier and Local Government Minister’s request to reconsider.”

Mayor Jean Hay said she was expecting some form of amalgamation to occur.

“Obviously something is going to happen – I feel assured­ there will be some form of amalgamation but I am just not sure in what form,” she said.

Premier Mike Baird has set a deadline of November 18 to the majority of councils in Sydney that have failed a financial sustainability test.

NSW Premier Mike Baird and Minister for Local Government Paul Toole released the IPART report today. Picture: Stephen Cooper.

Manly, Warringah and Pittwater now have a month to come back to the Government with voluntary merger proposals.

“The IPART report shows the situation is now critical and that action is needed to ensure ratepayers get value for money and the services and infrastructure they deserve­,” he said.

“For many councils this is the final opportunity to do the right thing for the future of their communities which in many cases may include merging with neighbouring councils.”

IPART found mergers would free up close to $2 billion over 20 years for ratepayers, $1.95 billion of that on the metropolitan area.

It said most councils labelled­ unfit did not have sufficient scale and capacity­. With only nine councils volunteering to merge, the Premier made it clear the Government would act to force their hand. Asked how it would force through amalgamations once the deadline was up, Mr Baird deflected questions from journalists saying only that this was “the end of the road”.