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The NSW Labor Government passed amendments to the Local Government Act on May 9 which give the Minister, Ron Hoenig, the ultimate say over whether councils can demerge or not.
It was a huge disappointment, according to the Residents for Deamalgamation.
“In debate, Labor MPs pretended that they had heard communities and spoke at length about how forced council amalgamations had failed residents, especially those from small councils which had been swallowed up. But then they all voted to centralise power with the Minister,” said a statement from Residents for Deamalgamation
“Labor’s scornful attitude was shown up by its removal of government liability to fully fund any demerger,” the statement said.
However, because it needed the Opposition to pass its bill, it accepted the Liberals’ amendment of a grant, capped at $5 million, with loans above that amount, to a council which had been approved to demerge.
“This will help regional councils, but will not cover all expenses. It means Labor is happily shifting the cost of a failed policy back on to residents (who mostly didn’t want their council amalgamated in the first place).”
Dr Amanda Cohn, Greens MLC, said Ron Hoenig had given himself more power than councils and communities.
“The changes mean that communities cannot instigate referendums to demerge, as the community of the Inner West Sydney Council managed to do.
Cohn’s Local Government Amendment (De-amalgamation Plebiscites) Bill 2023 would have enabled binding plebiscites on a demerger and clarified that the government would fund any deamalgamation.
Labor refused to support it, thereby having to rely on the Opposition, which was looking for cover.
“The Greens moved amendments to their own bill on May 8, aimed at resolving “problems” Labor had raised. They also moved amendments to Labor’s bill in the Legislative Council, which were opposed by Labor and the Opposition.
“The Greens tried to: bind the Minister to act on the result of any de-amalgamation referendum (which Labor’s bill gives the Minister discretion not to do); and ensure that residents can still petition for a de-amalgamation proposal — critical for smaller communities whose councils were amalgamated into larger councils, such as Pittwater, Guyra, Bombala and Urana.
“Labor’s new bill means that even after a council produces a business case, goes through the NSW Boundaries Commission process and has a referendum (Labor’s new amendments), the Minister can still veto all of that.
“It’s a disgrace and one that residents should remember come this September’s local government elections.”
