Canterbury-Bankstown demerger: Council calls on NSW Government to pay for proposed demerger

Eight years after two southwest Sydney councils were “forcibly” merged, the former mayor has called on the NSW Government to foot the $66m bill if the council was split in two.

Canterbury-Bankstown Council will discuss a potential demerger. Picture: Robert Pozo

Eight years after Canterbury-Bankstown council was “forcibly” merged, the former mayor has called on the NSW Government to foot the $66m bill if the council was split in two.

The business case — based on financial modelling by Morrison Low — claimed the minimum upfront costs of unwinding the forced amalgamation of the former Canterbury and Bankstown councils would tally $66.2m.

The figures include $24m to reinstate Canterbury Council, $29.2m for Bankstown Council and a further $13m to “renew” the 59-year-old former council chambers at Campsie.

Councillor Khal Asfour will table a motion at tonight’s council meeting for the council to “immediately halt all work, and financial spending” on preparing a plan to demerge until the state government gives an “iron-clad commitment” to fund the demerger and ongoing costs.

Mr Asfour said the council had completed community polling and surveys, and found demerging was “not a priority for the community”.

Former Canterbury-Bankstown Mayor Khal Asfour supporters a demerger – but only if the NSW Government foots the $66m bill.

“When you tell them [community members] about the impact of a demerger, those with the history of the area might say yes but when they learn your rates could go up by $300 a year then they say no.”

Ratepayers in Canterbury would face an average $175 yearly increase in rates, while Bankstown residents would be slugged an extra $166 per year in rates, according to the modelling.

In a worst-case scenario, residents in the Canterbury suburb of Ashbury would be hit with $418 in additional rates a year.

Mr Asfour said residents were more concerned about the rising cost of living, interest rates and rental hikes.

“We are happy to demerge on the provision that the government pays for the costs, as no person wants an increase to rates,” he said.

“You’re not getting your streets swept more often, you’re not getting anything from it … the only thing you’re getting is another rate with a different name at the top.”

Mr Asfour said “we’re passed the point of needing to spend money” without a commitment from the state government to fund the demerger.

“The time spent by staff and resources needed to continue this without having an iron-clad commitment from the government, I’d rather be spent on services to our residents,” he said.

“I haven’t been convinced as to why we would do it [demerge councils] for no benefit of service, the community has moved on.”

The Local Government Minister has been contacted for comment.