Local Government Minister Staikos rules out council mergers

Council mergers have been ruled out by Local Government Minister Nick Staikos, 30 years after Victoria’s municipal revolution.

Local Government Minister Nick Staikos has ruled out council mergers, after former premier Jeff Kennett says a municipal shake-up is needed statewide.

Three decades since the Kennett Government’s municipal makeover — when 211 municipalities were consolidated into 78 councils — Mr Kennett says a fresh look at local government reform is needed from Spring Street.

However, Mr Staikos ruled out any changes to municipal boundaries from the Allan Government, saying work on council transparency was a priority.

“We have no plans to review or amalgamate councils,” the Local Government Minister said.

“We’re focused on improving governance and integrity at all councils which is why we’ve delivered reforms to help councillors perform their roles and ensure that Victorians have confidence in their local representatives.”

Opposition Leader Brad Battin said councils would be included in a “comprehensive audit” of Victoria’s finances if the Coalition wins government at next year’s state election.

“Instead of supporting our councils to deliver better services, the Allan Labor Government has spent the past 10 years cost-shifting and making them scapegoats for their own failures,” Mr Battin said.

“We’ll conduct a comprehensive audit of Victoria’s dire finances, including how Labor’s mismanagement has impacted local communities.”

Last week, Mr Kennett told The Weekly Times the regular appointment of council monitors was a band-aid solution that did not address the growing local government dysfunction.

More than 20 councils have had monitors assigned to watch over their operations in the past decade, with several municipalities even having their elected councillors stood down.

“Just as was the case 30 years ago, it is again time for a statewide review of the performance of municipalities and that might very well lead to a further reduction in the number of municipalities,” the former premier said.

Municipal Association of Victoria president Jennifer Anderson said: “Boundary changes to local government areas are complex and significant undertakings that can result in substantial costs and disruptions for councils and their communities. As such, they should only be pursued with careful consideration and clear justification.

“That increased efficiency, effectiveness and cost reduction automatically follow from expanding local government areas is a myth.”

Regional Cities Victoria treasurer Tammy Smith also opposed any wide-ranging restructure to local government.

“We don’t need another expensive inquiry to tell us the challenges facing local government,” she said. Cash-strapped councils know all too well the difficulties created by rising infrastructure and service delivery costs which are then compounded by limitations around revenue generation.”