Edward River Council was formed in 2016 by merging the former Deniliquin Council and Conargo Shire Council.
After several years of relatively smooth transition to the new entity the current council, elected in 2021, has had various controversies.
Last month it was revealed the council’s employee costs have skyrocketed, despite predictions there would be payroll savings under the new entity.
Instead, payroll costs have ballooned from a combined $7.45 million in the final year of Deniliquin and Conargo councils, to nearly $12 million this year for Edward River Council.
A 2015 report by the Independent Pricing and Regulatory Tribunal found local government mergers in NSW could save ratepayers $2 billion over 20 years, which it said could be used to cut rates.
In contrast, an independent financial review of Edward River Council last year recommended rate increases of 42 per cent over the next six years.
When the Pastoral Times contacted ERC CEO Phil Stone in relation to the significant payroll increases, we received a response that stated “council sets its strategic direction in consultation with the community”, that “councillors are an integral part of the (budget) process” and “council adopted the 2023-24 operational plan and budget in June 2023”.
The amendments to the Local Government Act 1993, introduced to the NSW Parliament on Tuesday, provide a new legal pathway for NSW councils seeking to demerge, including those that already have de-amalgamation proposals under consideration.
It outlines the exact steps a council will need to take to achieve a demerger, including a constitutional referendum, gaining minister approval and a proclamation of demerger from the governor.
Although the Local Government NSW has said government’s decision not to fund council de-amalgamations will make it “virtually impossible” for councils wishing to de-amalgamate.
Its president Cr Darriea Turley said it’s very disappointing that councils should have to carry the financial burden of unravelling amalgamated councils, which were forced on the community by the previous Coalition Government.
Minister for Local Government Ron Hoenig told the ABC this week that the amendments “are more pragmatic than other legislative proposals being put to parliament and ensure demergers can be effectively managed by councils and that any new councils are financially sustainable”.
“I want to empower the councils and the councillors and the communities to be making their own democratic decisions,” he said.
In the Edward River Council region, those seeking change will have that opportunity in September, when local government elections are due.
One councillor told the Pastoral Times they were “fed up with the behaviour” at ERC.
The council has been constantly under scrutiny for its communication and transparency, despite the community highlighting these as priority during the 2021 ‘Our Region, Your Say’ community consultation report.
This report also highlighted concerns about possible population declines, which also made people question why Edward River Council predicted a population of nearly 20,000 by 2050 in last year’s Growth Strategy report.
Many people considered this too ambitious and unachievable, yet Mayor Peta Betts refused to respond to questions about the target from the Pastoral Times.
Local government elections will be held on Saturday, September 14.
