Survey shows small and medium businesses support forced council mergers

A MAJORITY of small and medium Tasmanian businesses are in favour of the State Government forcing council amalgamations, new Sensis data shows.

A MAJORITY of small and medium Tasmanian businesses are in favour of the State Government forcing council amalgamations, new Sensis data shows.

Of 80 businesses surveyed in the Sensis Small Business Index for the June quarter, 57 per cent were in favour of forced council amalgamations, with 19 per cent opposed to the idea.

A further 14 per cent were neither for or against forced amalgamations, while 10 per cent were unsure.

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The State Government has ruled out forcing council amalgamations, but a number of councils are investigating amalgamation and resource sharing options.

Feasibility studies into merger options for a greater Southeast council involving Glamorgan Spring Bay, Clarence, Sorell and Tasman councils, and a greater Hobart council of Glenorchy, Hobart, Kingborough and Clarence are being reviewed.

Local Government Association of Tasmania chief executive Katrena Stephenson.

In the North of the state, George Town Council and West Tamar Council are also considering merger options.

Local Government Association of Tasmania chief executive Katrena Stephenson said the state’s Local Government sector was not averse to amalgamations.

But Dr Stephenson said some reasons given by community members for their support of mergers, such as the potential for lower rates or more streamlined regulations, were not supported by evidence from other jurisdictions.

Forced amalgamations had been shown to be less successful than voluntary mergers, she said.

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Anthony Hewitt, who manages George Town-based company Louton Design, said he was generally supportive of council mergers, but opposed the proposed George Town amalgamation with West Tamar Council.

Mr Hewitt said his business, which provided architectural and engineering design services, required him to be in regular contact with both councils.

“I deal with (George Town) council all the time because of the nature of my business, and the council they’re talking about merging with is the most difficult council to get on with in this area of the state,” Mr Hewitt said.

“I am in favour of merging councils, but not where we’re going to be worse off than what we currently are.”

Red Kellys Tasmania managing director Leo Miller said his business had not decided its position on amalgamations, but he was personally in favour.

“Perhaps indirectly there would be a bit more taxpayer money to go around,” Mr Miller said.

“It won’t affect our business I don’t think. You’ve got nowhere else in Australia that needs that many councils for that ... population.”

A State Government spokesman said they did not support forced amalgamations.

“Instead we are acting on issues of concern to small business, such as simplifying planning rules and taking control of TasWater,” he said.