The Beattie Government asserts that its recent moves to halve the number of Councils in Queensland from 157 to 73 has been done to improve the financial viability of Councils and make them stronger. This is based on the premise that larger Local Government units are more economically sustainable.
Speaking on the ABC’s 7.30 Report, Queensland Minister for Local Government, Andrew Fraser, said that the current set of boundaries in Queensland has been in place largely for 100 years or more. He added that 40 per cent of Councils were found to be either in a weak, very weak or distressed financial position, a phenomenon that occurs around Australia, and that other States have undertaken reform of Council boundaries.
Unfazed by a hostile reception in Barcaldine a few days earlier, (see page 1), Premier Peter Beattie, also on the 7.30 Report, said that the Government understands that, “not everyone is going to be in love with it, but the truth of the matter is no one should underestimate our determination to build strong Councils, to cope with the growth of Queensland”.
Sometimes mergers can be quite successful and are broadly embraced by the wider community. Usually this is the case where there is already strong common interests across the newly proclaimed area, such as neighbouring suburban areas, and for ‘donut’ amalgamations where there is an established regional town that services many of the needs of its surrounding rural Shire.
But for larger rural areas, the imposition of ‘super shires’ is not always a happy marriage.
The forced amalgamations in Victoria under the Kennett Government over a decade ago never sat well with the divergent communities of Benalla and Mansfield, situated just 65 kilometres apart. Benalla is a regional centre servicing a strong farming sector, while Mansfield is the gateway to Victoria’s snowfields and high country activities. With two very different economic bases, Mansfield residents were happy to accept the reality of higher rates, convincing the then Bracks Government to agree to a de-amalgamation so the community could take back control of their locality and future.
And in spite of the Victorian restructure, a recent Municipal Association of Victoria (MAV) study found that 15 of its
79 Councils are not financially viable. With the common factor of a large area, a small rate base and lengthy road task, the MAV asserts that even if it were possible to join these 15 into the
one ‘super’ Council, it would still not be financially sustainable!
The Local Government Association of Queensland (LGAQ) has been critical of the Beattie Government’s approach, particularly its refusal to allow local referendums on the new boundary proposals. Similarly, the Australian Services Union (ASU) was surprised that the recommendation contained in the report, which was released on 27 July by the Local Government Reform Commission, had already been accepted by Cabinet and will be legislated in the coming weeks, thereby setting aside a promised period of consultation with stakeholders.
Although the ASU has brokered a three year agreement with the Government to protect current jobs, the rationale that larger Local Government units is more cost effective must ultimately lead to fewer local jobs in many areas. The multiplier effect of this job loss impacts regional and rural communities the most.
LGAQ has been quite vocal in pointing out to the Beattie Government that in Victoria, Tasmania and South Australia, where the then Conservative State Governments pushed through or were in the process of introducing unpopular amalgamations, these Governments lost the ensuing election. The backlash from regional and rural electors who believed their local democracy and right to determine local issues had been usurped was a major contributor to this payback through the ballot box.
