The case for local government amalgamation in NSW

In its Fit for Future package, the NSW State Government has published its position on local council mergers. It makes no pretence at forcing amalgamations, instead providing financial incentives to encourage local councils to make their own moves.

While this answers in part the "what's in it for us?" question for local councils and their communities, it highlights the apparent absence of other compelling motivators for amalgamation.

IS "BIGGER BETTER"?

Conventional wisdom cites economies of scale and efficiencies for merged councils as the justification for amalgamation.

For example, Randwick City Council estimated in April 2013 that a hypothetical Eastern Suburbs Subregional Council comprising Woollahra, Waverley, Randwick and part of Botany, would achieve a surplus of $518 million with no debt, service levels maintained and no infrastructure backlog over a 10 year period.¹