The news that the NSW state government has formally approved the split of the Cootamundra-Gundagai Regional Council after a long community fight is a real fillip to those opposed to forced amalgamations. It’s a restoration of hope for fairness and justice in local government: Someone in charge is listening for a change.
The fact that local government Minister Ron Hoenig has acknowledged that the policy of forced council mergers should be ‘dispensed with in the dustbin of history’ is not your standard lily-livered, weak-kneed piece of political spin but a clear statement of rejection backed with action.
Bulk forced amalgamations have been going on for the last 25 years with ministers not listening to what their minions were saying. Most councils gave in or were willing parties to the process, but not all. Some fought against with success.
Ku-ring-gai and Hornsby Councils were being forced into marriage, but in 2017 Ku-ring-gai successfully challenged the forced merger in the NSW Court of Appeal. The court ruled against, citing a lack of procedural fairness and failure to consider properly the financial impacts. Cost to taxpayers: nearly half a million.
Future de-amalgamation for RVC?
Minister Hoenig’s robust return of councils to the status quo is music to the ears of many residents and ratepayers of Richmond Valley Council (RVC) who were once part of the Richmond River Shire Council (RRSC).
RRSC was forced into amalgamation with Casino Municipal Council (Casino) to form Richmond Valley Council 25 years ago. This amalgamation was part of a larger push by state governments at the time for many councils to amalgamate.
In the case of the Richmond Valley merger, the economic case was very flimsy. Anyone with a basic understanding of economics and long-term planning just laughed out loud at the alleged benefits of the reform. There was never any follow-up to see if there was any real financial benefit as promised, something you’d expect for any change based on an economic argument.
Breach of Act
The very fact that there was a large payout to one of the general managers did not help to give credibility to the economic case. And the imposition of Special Rate Variations on ratepayers confirmed that the amalgamation was a financial dud.
What most people don’t know is that RRSC met behind closed doors out of the public view and in breach of the local government act to proceed with the amalgamation with Casino in the late 90’s. The State Ombudsman ruled to that effect but only after the amalgamation had been promulgated. Too late!
The community only became aware of what was going on when various documents fell off the back of a truck giving details of the behind-closed-door meeting where the decision was made and through the work of local councillor Ray Jeffery.
The RRSC push to amalgamate was led by the then mayor Col Sullivan who was subsequently rewarded for delivering his council to amalgamation by appointment to the Boundaries Commission which decides on amalgamations.
A formal community poll showed that more than 75 per cent of those in RRSC were opposed to amalgamation, but the Minister for local government at the time, local member Harry Woods, signed his own political death warrant by refusing to allow the community to go to local government elections. This incensed the community. Harry was voted out of office at the next state election. Labor has never recovered the electorate support since that time.
Economic fail
The main arguments put against amalgamation were that the economic case didn’t hold water; local ratepayers would lose control of their destiny to the larger population centre, Casino; and would have planning and other decisions imposed on them including unfair rates.
All those chickens have come home to roost including a so-called uniform rating structure which sees Evans Head carrying a disproportionate rate burden; a failure to rezone the controversial Iron Gates area to a more appropriate environmental zoning; sale of the Evans Head Memorial Aerodrome to the former owner without a proper tender process at a bargain basement price; failure to deal effectively and in a timely fashion to the Evans Head sewage problem which has seen an enormous cost to both the community and the environment; and failure to adequately look after its assets with routine maintenance and compliance. And there’s the growing problem of secrecy and dilution of the democratic process.
Richmond Valley Council has admitted it can’t look after what it has now, so perhaps we need to revisit a return of the former RRSC so that we can get control again over our own destiny?
By any standard the Casino ‘experiment’ has not worked and certainly not for the ratepayers and residents of the former RRSC. There is a case for divorce to a receptive Minister for Local Government.
For four decades The Echo has printed the stories some people loved, some people hated, and some pretended not to read. If you want us to keep telling the truth, the real truth, not the sugar-coated version. We’ll need your support to keep the presses rolling. 
