Cootamundra Gundagai Mayor Abb McAlister welcomes demerger process

A NSW Riverina mayor has revealed the massive cost blowout of its “disastrous” merger following the announcement of a demerger.

Cootamundra-Gundagai Regional Council Mayor Abb McAlister. Picture: Cootamundra-Gundagai Regional Council

Cootamundra Gundagai Regional Council Mayor Abb McAlister took a moment in rare winter sunshine to comment on a State Government mistake that has cost local ratepayers an estimated $44m.

Standing in the main street of the small southern NSW town of Gundagai, Cr McAlister, 70, said the merger of both councils in 2016 should never have happened.

His comments come after the Minister for Local Government Ron Hoenig announced the long-awaited demerger could proceed following a NSW Local Government Boundaries Commission recommendation.

In 2015 a program of proposed mergers was announced by the NSW Government to cut the number of councils from 152 to 112, a development since referred to as shotgun marriages.

“We tried our hardest to stop it, to fight it and to end it,” Cr McAlister said.

Cootamundra Gundagai Regional Council will demerge. Picture: Google Maps

“Over time we have lost a lot of money because of it. The person who has paid for it is the ratepayer. It’s been disastrous for our ratepayers.”

The retired stock and station agent was mayor of the old Gundagai Council for six years, then was elected mayor for the first four years of the newly merged council.

Minister for Local Government Ron Hoenig. Picture: Richard Dobson

He was returned to the mayoral position last October.

Cr McAlister said Cootamundra and Gundagai residents had always got on well but were collectively opposed to the merger as soon as it was forced on them.

“Apart from the football there was just no community of interest,” he said. “Even the schools are in different education directorates so there was no crossover.”

In a submission to the Local Government Boundaries Commission into the proposed separation he didn’t mince words.

Cr McAlister said a “terrible” animosity had mushroomed between the people of Cootamundra and Gundagai that had a significant impact on the mental health of staff, councillors and community members.

The uncertainty surrounding the council’s future also took a toll on council employees, with multiple interim general managers since 2022. Morale has reportedly been rock-bottom because of the inability to forward plan and recruit permanent staff.

Cr McAlister said the losses council accumulated over the last nine years were an estimated $44m. While the rate base of the new larger council increased, so did expenses.

The cost of demerging is estimated at $2.5m – $3m. In written submissions some residents said they’d welcome an increase in rates if the NSW Government was not forthcoming with financial support.

Minister Hoenig said the community’s opposition was not just philosophical.

“It was financial and practical,” he said.

According to a council media release, the announcement came after three Boundaries Commission inquiries into the issue, two Members of NSW Parliament for the Cootamundra electorate, three council terms, five Ministers for Local Government and a change in the NSW Government.