Local Government Reform

To: Peter Gutwein – Minister for Local Government: peter.gutwein@dpac.tas.gov.au;

I want to encourage you to keep advancing the idea of local government reform in Tasmania. Local government acts as a 'cut out' between the population and State government as well as a diverter of public monies.

Basically the combined direct and indirect costs of keeping 29 administrations going around the State is out of all proportion to any benefits.

Overall, Tasmania has too much money circulating in often unproductive government, and not enough circulating in the private sector. In some areas (e.g. Launceston) some 25% of Council's budget is for loss making entertainment and recreation activities (swimming pools, gym, football) all of which could be handled by the private sector.

Inexcusable is the fact that local governments can increase rates to cover their own losses and inefficiencies, which also forces private sector groups to fund competition from their local Council.

For a population the size of Tasmania between 1 and 3 groups dedicated to provide the essential services provided by Councils would suffice.

The mistake made by previous administrations was to allow Council's to specify what they do when it is ratepayers who must pay for Council excesses.

Monies collected by Councils are monies that could otherwise support key State initiatives, as well as investing and stimulating the private sector.

TASMANIAN councils are working on a basis of four regional models to begin negotiations around amalgamation and resource sharing.

The regions in discussion would be made up of the North, North-West, Greater Hobart or Greater South-Eastern councils and include 23 of the state’s 29 councils.

Regional model discussions were announced by Local Government Minister Peter Gutwein at the Local Government Association of Tasmania annual meeting in Launceston on Wednesday, and follow an independent survey that found 55 per cent of respondents believed reform was ‘‘very important’’.

‘‘What this should be able to do for those councils involved is to improve the benefits and services to ratepayers by delivering them at a lower cost,’’ Mr Gutwein said.

‘‘I think there are a range of efficiencies that can be achieved as a result of this.’’

The Northern region, which met for the first time on Tuesday and is made up of Launceston, Meander Valley, Northern Midlands, West Tamar, George Town, Dorset, Break O’Day and Flinders councils, will look at resource sharing and continue discussions from there.

The North-West region of Circular Head, King Island, Waratah-Wynyard, Burnie, Central Coast, Kentish, Latrobe and West Coast councils will do the same.

Yet, Devonport City Council wants to also consider amalgamations.

In the South, there is discussion around amalgamations that would see a Greater Hobart council made up of Hobart, Kingborough, Clarence and possibly Glenorchy or a Greater South-Eastern council with Sorell, Clarence, Tasman and Glamorgan-Spring Bay.

Mr Gutwein also announced a review of the Local Government Act, which would focus on roles and responsibilities of elected and non-elected staff, administration and financial management.