Ratepayers urge Victorian councils to merge
Ratepayers Victoria are calling for similar councils to merge in a bid to cut costs and reduce household rates. These are the 16 local councils potentially facing amalgamation.
VIC News
Don't miss out on the headlines from VIC News. Followed categories will be added to My News.
Some Victorian councils should merge to be more efficient, cut costs and reduce household rates, the state’s ratepayers lobby group has declared.
Now 25 years on from the council amalgamations of the Kennett government, Ratepayers Victoria says it’s time to reassess the sector and reduce duplication by merging similar councils.
He said councils, councillors and executives don’t want to talk about the issue because of their vested interests.
Maribyrnong, based in Footscray, has one of the highest rates in Victoria and its ratepayers’ group said a merger should be at least looked at.
“I can’t see there’s much cultural or economic difference between Maribyrnong, Hobson’s Bay, Brimbank and Moonee Valley,’’ Maribyrnong Ratepayers Group spokeswoman Denise Boyd said.
“There could be benefits and economic efficiencies,’’ Ms Boyd said.
Mr Hurlston said other possible amalgamations could be: Melbourne and Yarra; Moreland and Darebin; Knox and Maroondah; and Port Phillip and Stonnington.
He said smaller councils such as Nillumbik and Maribyrnong are too small to be efficient.
Mr Hurlston said most of the boundaries were arbitrary and the differences between neighbouring councils negligible.
Last year Peter Clarke, a councillor and former mayor at Nillumbik, floated the idea of merging with Banyule. It would lead to efficiencies and cost-savings, and was worth considering at the very least, he said.
The main offices of both councils are even located in the same suburb, Greensborough. And a united “Ban-Bik” council would still be smaller than large outer-suburban municipalities such as Casey and Wyndham.
Cr Clarke’s idea fell at the first hurdle and neither council proceeded with any investigation.
Mr Hurlston said staff cost reductions, especially at the executive level, could save between 10 and 30 per cent off the wages bill – each council’s biggest single expense.
Chief executives at metropolitan councils can earn more than $400,000 a year. The City of Melbourne’s CEO Justin Hanney is on $498,000 while his Yarra counterpart Vijaya Vaidyanath is on more than $380,000.
Municipal Association of Victoria deputy president Ruth Gstrein said amalgamation was not the answer as local issues required localised responses.
“Each of the 79 Victorian councils represents a unique community with diverse needs,’’ Cr Gstrein said.
“The global trend is for greater local engagement with local communities – not more centralised bureaucracy and decision-making.’’
Victorian councils already have efficiency programs such as shared services and collaborative procurement which delivered savings, efficiency and performance improvements, she said.
MORE NEWS:
WHY BIRDS ARE FLOCKING TO WERRIBEE
HOW SURF COAST TRADIE BECAME FACE OF COLD CASE MURDERS
“A great example is the 48 Victorian councils currently working with the MAV to procure renewable energy, which will be the largest ever emissions reduction project undertaken by local government in Australia.’’
In 1994, 210 municipalities became 78 and later 79 with the number of councillors reduced from 2000 to about 600.
A spokesperson for Local Government Minister Adem Somyurek said mergers were not on the government’s agenda.
“Our Fair Go Rates cap has stopped excessive rates increases and encouraged Victorian councils to work together in delivering services,’’ Mr Somyurek said.