Optimism and concern as demerger parties come round Gundagai table

Cootamundra-Gundagai Regional Shire Council (CGRC) hosted representatives from the Hilltops, Snowy Valleys, Snowy Monaro Regional and Federation councils in a roundtable meeting at the Gundagai RSL on Monday afternoon, where they met with state government representatives and members of the United Services Union to discuss the issue.

Almost 18 months after the former Coalition government announced the demerging of the CGRC, it is still locked in negotiations over how to proceed, after minister for local government Ron Hoenig recommended the council should find its own way forward if it is to demerge before September's local government elections.

Meanwhile, the Snowy Valleys Council is currently awaiting a decision from the NSW Local Government Boundaries Commission after it submitted its business case to demerge last September.

On Monday morning, Wagga MP Joe McGirr expressed optimism that the roundtable discussions will prove fruitful and a way would be found to proceed with the demergers, which he said have to this point "practically [been] a disaster".

"[The forced mergers] were a very poor government decision which has resulted in significant rate rises, stress in the community," Dr McGirr said.

"It hasn't produced any benefits that I can see regarding the operation of those councils, particularly the Snowy Valleys Council in my electorate."

To this end, Dr McGirr expressed hope that Monday afternoon's roundtable would "help us find a way for the government".

He called for a "clear and practical way forward", and outlined his own efforts with Greens MLC Amanda Cohn on a bill to try and rectify some challenges with the current legislation around the demerging of councils.

In November 2023, Dr Cohn introduced the Deamalgamation Plebiscites Bill, which aims to amend the Local Government Act to allow plebiscites to be held to vote on demerging amalgamated LGAs.

In May 2023, a report commissioned by the Snowy Valleys Council and authored by University of Newcastle professor Joseph Drew, found there was a strong case for the former councils of Tumut and Tumbarumba to be de-amalgamated.

Weighing in on this week's roundtable, Professor Drew was less optimistic, but remained hopeful.

"I hope the communities will get some relief for the financial burden they are bearing as a result of the 2016 state government decision [to forcibly merge councils]," he said.

Professor Drew said papers published in some of the world's top journals have shown that the amalgamation of councils alone results in an 11 per cent cost increase.

He said in light of this, there are a few choices to make, the first be to leave councils as they are and see major cost increases to ratepayers, allow deamalgamation which "costs money and is not always possible", or that the state government provides new financial compensation for forcibly merged councils.

Meanwhile, Tumut Community Association president Christine Webb urged the parties to find a solution to demerge the local Snowy Valleys LGA "as quickly as possible".

"It must happen quickly for the welfare of the [council] staff and the community, so that the deamalgamated councils can move on and progress with taking the area forward," Ms Webb said.

"[Council] is basically in limbo at present and we really feel for the staff," she said.