Mergers on the mind

On both sides of the Tasman local government mergers are a hot topic. In New Zealand the new national government is forcing through a merger of all of the councils in the Auckland region. In Australia, Bruce Miller, the recently re-elected president of the Shires Association, told the Sydney Morning Herald it was a case of merge or perish for many local councils that are being squeezed by increasing financial pressure.

In Australia this may be a voluntary consolidation. “Roads, water, sewerage, parks, you name it - all areas you expect councils to be responsible for are becoming more and more difficult to maintain to a level that’s acceptable,” Mr Miller said. “There’s been a huge cost shift to local councils, running at about $400 million per annum on top of the $600 million shortfall on infrastructure spending, because of cost shifting for libraries, community and child-care centres and aquatic centres that traditionally were not our responsibility.”

In New Zealand there is no choice.