The 2010 LGMA Emerging Leaders present....

Amalgamation Is it a dirty word?

A collection of your thoughts, opinions and stories. Intent

This report is not intended to be an in-depth analysis of the pros and cons of local government amalgamations. Our goal is not to research and present facts and figures about past and possible future amalgamations. Rather, this report is a collation of ideas, thoughts, and experiences from a wide range of stakeholders to local government.

Overview

Those who have been around local Just over 50% of all respondents believed government for more than a few years will that amalgamations resulted in an no doubt have found themselves involved in improvement in local government operations discussions about council amalgamations and there was 54% support for further at some point. This report seeks to consider metropolitan council amalgamations. the topic of amalgamations through a The survey responses revealed that the review of the thoughts, experiences and reasons for this support varied widely from perceptions of the various local government individual to individual, stakeholder group stakeholders. to stakeholder group.

To inform the report, a survey was A key finding of the survey was that there completed by 446 stakeholders to local is still a high degree of concern about the government including staff across all benefits of and angst about the process levels of responsibility, elected members, of the amalgamations undertaken in 1997 state government employees and a and this would need to be addressed prior range of community and private industry to any further amalgamations proceeding. representatives. Respondents provided So is amalgamation a dirty word? frank views on the topic as well as insights What are your thoughts? Read on to into the range of emotions that the topic discover the results of our research into can stir. your personal opinions and stories. Most respondents had strong opinions as to whether previous amalgamations had been beneficial to local government and whether the long term successes that were achieved outweighed the short term turmoil that the process creates (or which future amalgamations could create).

Throughout this report, the term ‘council’ is used generally to describe local government geographic areas, rather than the elected bodies that represent the residents within these areas.

A collection of your thoughts, opinions and stories. 1 MALLALA LIGHT

GAWLER BAROSSA

PLAYFORD

SALISBURY

TEA TREE GULLY Introduction

PORT ADELAIDE ENFIELD

The subject of copious media articles, CAMPBELLTOWN university studies, general public debates CHARLES PROSPECT ADELAIDE MID WALKERVILLE The Survey STURT NORWOOD MURRAY and even parliamentary inquiries both PAYNEHAM HILLS within South Australia and interstate, ST PETERS The questions in the survey sought to ascertain WEST ADELAIDE there have been few more contentious information and opinions about people’s TORRENS BURNSIDE issues in recent times than local UNLEY individual experiences with and knowledge government amalgamations. of local government amalgamations. Local government stakeholders were specifically HOLDFAST In 1997, local government in targeted and a total of 446 respondents BAY MITCHAM South Australia underwent its biggest completed the survey, with many agreeing to be transformation in decades. From a total interviewed to provide more detailed feedback. of 119 councils across the state, the South Australian government facilitated Questions were set out in such a way that MARION the amalgamation of urban and regional opinions and statistics could be drawn upon to MURRAY councils to result in just 68. The move was MOUNT BRIDGE assist in presenting some of the common feelings BARKER promoted as beneficial to both the councils and opinions among the key groups on the often themselves and the communities they serve, controversial topic of amalgamation. Further particularly in terms of cost savings and analysis of the data enabled us to consider the ONKAPARINGA the efficient provision of services. views of those in rural vs metropolitan areas and those who have and have not experienced an But how did the various stakeholders both amalgamation. within local government itself; the staff, elected members, the representative body Respondents kindly endured a barrage and externally; the residential community of questions relating to the impacts of and the private sector, perceive the move? amalgamation on the various stakeholder groups From their viewpoint, were the promises of as well as their views on the environmental the mergers ever realised? Were there any impacts, community culture, financial benefits, unexpected results, positive or negative? resource sharing and the extent that they would What were their personal experiences? ALEXANDRINA like to see further amalgamation. The survey And drawing from all of this, would revealed a range of personal opinions on they support further local government the success of previous amalgamations and amalgamations in South Australia? perceived impacts that further amalgamations YANKALILLA may have.

Planning SA (1)

2 Amalgamation - Is it a dirty word? A collection of your thoughts, opinions and stories. 3 “As a resident, ratepayer and employee, I am still waiting to see if there are any real benefits.” My Story Andy Gourlay Parking & Traffic Officer, Kay Fothergill City of West Torrens Internal Training Advisor, City of Onkaparinga

I was working at the City of Noarlunga at the time of the amalgamation to form the City of Onkaparinga in 1997. There were potentially financial benefits, opportunities for skills transference and other gains that we would all work towards, Local Government Employees’ Perspective but at the time we could not see this through the mayhem. Faced with an increased workload in the short term, staff displayed a lot of mixed emotions but predominantly negativity and stress. We were told to embrace the people from other councils with whom we would amalgamate and we were able to do this. Some staff members were counselled prior With more than 9,000 employees working Though amalgamations make for uncertain What do the statistics say? to the amalgamation and were better equipped to cope with in 68 councils(2), local government is and often competitive times, many the change. These people became the change champions as one of the most diverse workforces in employees highlighted the possibility of a More than half of the respondents felt we stood back and watched. With the reduced number of South Australia. There is no question that wider variety of positions in larger councils that amalgamations improved the overall positions, there was also a great feeling of loss and guilt felt by amalgamations have a huge impact on and the opportunities for promotion or operations of local government, and only those staying over those leaving. local government employees. The change career change that go with it as positive 13% felt that no services improved as It was a fresh start but you need strategies in place (around every certainly casts waves of uncertainly amongst outcomes. A larger organisation is often a result of council mergers. This clearly aspect of the amalgamation), not knee jerk reactions. We had staff members once the merger decision better placed to win grants and government demonstrates that in the opinion of local three different email applications prior to the amalgamation. has been made. funding and is more capable of rolling government employees, the changes Once the new council was formed, we bought a new system. out bigger projects, creating exciting resulting from amalgamation have a This created a massive training requirement. I was the main The primary concerns identified by opportunities for employees. Despite being positive effect in the long run. However, trainer of the new system, with one person to back me up. respondents who work in the local disruptive and time consuming, with a the implementation of these changes I trained solidly for five weeks and was extremely tired, so tired government sector were the loss of temporary increase in staff workloads and and the impact on the people within that I couldn’t remember my address when I ordered a pizza one jobs, the forced change in roles and the night! We needed more forward planning and consultation with hours, the majority of respondents believe corresponding councils varies greatly. “From all my experiences, whenever amalgamation transformation in organisational culture. key stakeholders as to how best we could move forward and that amalgamations can result in new and is talked about, a phrase that always appears is implement new systems. The changes were so full on - no gradual It is a particularly stressful time for those improved systems, processes and software Of the local government respondents, “short term pain, long term gain.” This is how progression! One solution might have been to let the teams get having to reapply for their own jobs, and that improve overall efficiency and provide 41% believe that amalgamations have I feel about them.” together (from each of the three councils) pre-amalgamation to for those retaining their jobs, having to better customer service. a negative impact on employees, settle into new teams involving people work out the processes and systems in advance. 30% think they have a positive impact, Sergio Cesaro from the corresponding merging councils. The common factor across most of 27% were unsure, and 2% consider they Facility Support Officer, City of Charles Sturt I believe the community feel (of the smaller councils) had a With this brings challenges of shifting the employees surveyed was the have no impact at all. Just over lot of benefits. The larger you get, the more familiarity you strong loyalties to the former council’s individual emotional response during 54% would support further amalgamations, lose. Residents didn’t get the same service they did from the culture, systems and processes and to the implementation of amalgamations. 16% are staunchly against the notion, smaller council because employees weren’t focused on the little things, for example, remembering to empty the bins after embrace a different way of doing things. Many spoke of the sense of loss with while 30% remain unsure. Should further hours so Mrs Jackson doesn’t get upset. However in hindsight, There may be a new CEO, with a shift team members they considered friends amalgamations occur, the general the amalgamation helped build a progressive united council, in the focus of the organisation. Staff leaving the organisation and some opinion is that careful planning and everyone working together a team focused on the future. need to create, learn and adapt to new experienced guilt over the fact that they strong communication will ensure that We have been able to roll out larger water and biodiversity policies and procedures that are inevitably were able to retain their job or achieve “There have been a lot of the experience for local government projects, given the additional funding available. Due to the improvements, but it was a very introduced with fresh strategic directions. a promotion. Amalgamation brings with employees is as positive as possible. change in culture and processes, the City of Onkaparinga has stressful time for everyone.” it many changes and a period of become a leader in local government in its own right. uncertainty for local government employees, but is this a good or a bad thing? Beryl Sims Customer Service Officer, City of Onkaparinga

4 Amalgamation - Is it a dirty word? A collection of your thoughts, opinions and stories. 5 My story

Stephen Kerrigan CEO, Town of Gawler

“I was the CEO of a council that amalgamated with 3 other councils in 1997 to become the Regional Council of Goyder. The amalgamation forced elected members to focus on the bigger picture and led to a greater understanding of how Councils and communities operate from financial, asset management and services The Rural Perspective level perspectives.

Residents don’t really care who their Council is as long as they’re getting their services. Although should further amalgamations proceed, customer service should continue to be delivered face to face or at Of the 68 councils created under the Local There is only lukewarm confidence in the What do the statistics say? least in person over the phone. Amalgamations Government Act 1999, 49 are outside the capacity of elected members to effectively raise expectations that there will be cost savings and Adelaide metropolitan area. In regional and represent their constituents’ interests in Of the respondents surveyed, increased services. They also lead to employee anxiety rural areas, local government boundaries larger council areas. Councillors are 47 identified themselves as working and uncertainty regarding job permanency/security. often reflect embedded concepts of public often people who live and work in the in rural areas, 27 of which worked In smaller councils amalgamation can help to provide interest and identity. The amalgamation of community, tackling the issues that concern within local government. Planning and a ‘critical mass’ and whilst they can result in improved largely independent and intensely parochial the community they represent. Rural council asset management were seen by 70% compliance they may not necessarily realise any cost councils is often particularly contentious. mergers would mean that some elected of respondents as services that would savings. The idea of amalgamations distracts local This rural perspective is gathered from the members will be forced by distance to be improve as a result of amalgamations, while government from more important issues and core views of those both living and working in outside of their community for the majority more than 63% believed that waste services business. It takes a lot of work to justify the cost and rural and regional South Australia. of the time, and would not be able to could be improved if Council’s covered service benefits of amalgamations. attend all the engagements to represent their much larger areas. Furthermore 74% There is a feeling amongst rural respondents Amalgamation is not a dirty word. It is a misunderstood community in a new bigger council area. supported the ongoing provision of services that smaller communities will suffer in word often used to scare communities, but the process at local community centres in order to meet amalgamations as regional centres will In contrast, some believe that has the potential to provide good outcomes for the the community needs should rural Council’s “Within a larger council area it will community if done correctly.” consume the majority of resources and amalgamations can provide the resources be amalgamated. be so much easier to overlook small employment opportunities. Rural towns are to undertake projects on a larger scale, local problems on the basis that heavily dependent on local government such as roads, drainage works and master Of the rural respondents, 62% believe the need of the majority is greater, for employment, cash turnover and planning, and can result in the provision that amalgamation is not a dirty word. whether or not this be true.” support services. There is a great fear that of a wider range of social and community As long as sensible steps are taken to amalgamations will cause the profile of the services. This could be achieved through ensure that the community agree that they Bryan Hearn community to be altered. Concerns were greater purchasing power, the sharing of will benefit from the process and that Rural Community Volunteer also raised regarding outer-fringe areas equipment, and the savings on overheads. the level of service to the community is and the likelihood that these areas will be The majority of the survey respondents maintained or improved, amalgamations served less frequently or even risk being agree that larger Councils have the ability can have a positive impact. “Amalgamation is a dirty word forgotten about. Furthermore, residents to plan on a larger scale and employ and to some, but not the majority. of regional or rural areas, by and large, retain highly trained professionals, which Some will feel less belonging and remain sceptical about the economic will perhaps aid in addressing the skills disempowered.” benefits that have been put forward to shortage in such areas. “Is amalgamation a dirty justify local government amalgamations. word? It’s probably worse Overall the survey results suggest that than the words they throw you Peter Arnold amalgamations, though generally supported out of Church for using.” Assistant Manager Administrative in metropolitan Adelaide, should be Services, Port Pirie Regional Council approached with caution in rural or Steve Woolley regional South Australia. Deputy CEO, Elliston Council

6 Amalgamation - Is it a dirty word? A collection of your thoughts, opinions and stories. 7 My Story

Bob Such MP (Independent)

Robert (Bob) Such has held the seat of Fisher in the South Australian House of Assembly since 2000. Prior to this, Bob had been a Liberal Party member since 1989.

“I was on the City of Mitcham Council at the time of the proposed merger with the City of Happy Valley but have changed my views The Political Perspective regarding larger councils since then. I now see merit in more amalgamations in metropolitan Adelaide. My view is that larger councils are better resourced to provide services to the local community. I can’t see any services suffering, quite the opposite. Larger councils are able to provide more community services and Some Councillors and Mayors who have The elected members and mayors What do the statistics say? better community centres. Larger councils can take a broader view experienced boundary mergers oppose cautioned that amalgamations can result of issues and are not constrained by parochialism. the suggestion that amalgamations result in the inheritance of debt burdens when Although boundary changes should never In the metropolitan Adelaide area 19 councils is too many. There is in an improvement in the operation of a wealthier council amalgamates with be considered without proper consultation no need for 19 council chambers, 19 works depots and 19 separate local government. However in contrast, a council with inferior infrastructure. and research, 39% of respondents who computer systems. Metropolitan Adelaide is lagging behind because it is evident that they support further Respondents argued that loss of identity, favour amalgamation would entertain the there too many councils. Services could be improved and millions of amalgamation. no proof of cost savings, potential for idea of metropolitan councils amalgamated dollars saved by having only 3 or 4 councils. There is a lot of money to be saved in CEO, Mayor and Elected Member salaries alone. party politics and loss of representative by east, west, north, south, and central Respondents freely admit that A super council could work in Adelaide, but a 3 or 4 council model democracy are other major drawbacks Adelaide. This was followed by 26% who amalgamations will negatively impact would probably be the best option. A judicial review should be to boundary mergers. consider that a number of smaller scale elected members and mayors. They also carried out to ascertain this. amalgamations of neighbouring councils “The opportunity for a ‘new start’ believe that residents, community groups Some elected members looking to strike If amalgamations are completed well, there can be an overall is more appropriate for South Australia. because of the new entity was, and local government employees would a balance in the debate suggested improvement in operations, however it is important to keep the local I believe a critical factor in the suffer. According to the respondents in optimal council sizes of between Whether or not amalgamations result in in local government and to ensure that genuine local input is possible. new council’s success. The city this group, the big winners are the state 50,000-100,000 residents to maintain an overall improvement in the operation of One way to achieve this is to incorporate advisory committees of Onkaparinga was the beginning government and the development industry. community culture, while maintaining local government proved to be a difficult as New Zealand has done. As long as the model is right, all of a NEW council not simply an efficiencies. Some suggested that any question to answer. Only 25% of elected stakeholders can benefit from amalgamations, albeit there is likely to Reasons for supporting further amalgamation of 3 with the stronger be a reduction in council staff numbers. Amalgamation is certainly not new boundaries consider topography, officials answered ‘no’, and an even lower amalgamation include stronger negotiating (larger) one dominating. To not explore a dirty word in my opinion.” common amenities and similar issues, 13% responded ‘yes’. When asked if larger positions, increased rates base, enhanced amalgamation, or any other form such the formation of a coastal council council regions would result in a more even ability to lobby other tiers of government, of improving services, is after all and an inner-city council. spread of resources within the community, economies of scale, less duplication of letting down the very communities elected officials were split with 33% saying staff roles and the possibility of producing we are entrusted to deliver the best no, 33% agreeing and the remaining a fresh start inclusive of a best practice outcomes to”. 34% unsure or unable to answer. Of those attitude. Operations such as capital works, who were able to provide a ‘Yes ‘or ‘No’ planning, asset management and waste Former Councillor Trevor Fletcher, answer, 55% believe that amalgamation is services would be considerably improved. City of Onkaparinga not a dirty word. Should councils proceed with further amalgamation, library and community “What are the dirty words? Loss of services were frequently cited as services “My community will fight to participation, loss of effective local that should remain at a more local scale. stop amalgamation” representation, politicisation of local government, loss of community.” Former Mayor Tony Reade, Town of Walkerville Former Councillor Jim Jacobsen, City of Burnside

8 Amalgamation - Is it a dirty word? A collection of your thoughts, opinions and stories. 9 “Not really keen on the idea of mega My Story councils but I think that some of the smaller councils should be amalgamated Jim Douglas to ensure the most effective use of resources and employee expertise for President, Western Adelaide Coastal all South Australians.” Residents Association Inc

Anonymous I was previously a resident of the Henley and Grange Council, and in the late 1990’s I opposed the amalgamation with Woodville and Hindmarsh. “Amalgamations should result However I supported the amalgamation with West Torrens to create a in lower costs and higher ‘city to sea’ council, which made more geographical and cost saving efficiencies, but ratepayers are sense. Currently, I am the president of Western Adelaide Coastal Residents yet to see any benefit from past Association with approximately 300 members. amalgamations.” The Community Perspective One of the benefits of council amalgamations is the larger budget through Robert Owen the larger rates base, resulting in a greater number of projects. In addition Chairman, to this, larger councils have greater clout in attracting Federal funding for Netley Residents Association significant projects. Since local government amalgamations have taken place, I have found that service provisions have improved over time. Communities have historically opposed Those that have experienced local What do the statistics say? On the other hand, when the council is too big, I have noticed significant the merger of local government areas government reform generally are still restrictions in accessing particular staff and department managers... you and appealed against the perceived loss sceptical about the actual cost savings Of the residents surveyed, 40% have can’t just walk in and speak to the whoever you need too. In this respect, larger councils produce larger egos. There is more of an open door policy of local identity and local democracy(3), achieved and many admit to seeing very experienced South Australian local however recent newspaper reports few positive impacts. Responses in relation government amalgamations first hand, with smaller councils, which creates better and friendlier relationships. Staff suggest that there is perhaps a shift in to the real or perceived drawbacks were however within that group, only half know their constituents and more pride is taken in the community. Through residents’ attitudes towards amalgamations, frequently centred around the issues of the could describe some of the benefits of the our association I have the benefit of almost immediate access to staff, particularly within the smaller council areas increased bureaucracy and inefficiency in reform. It is felt by 70% of respondents that however this is definitely not the same situation for an individual resident. in metropolitan Adelaide . managing a larger council. In particular, (4) amalgamations do not result in an overall It does have the potential for more efficiency if there is greater cooperation concerns were raised regarding the lack improvement in the operation of local between councils. I feel local government is being used by state and federal Representatives of community groups, rather of communication between departments, government, with many citing increased governments to shift blame..... bigger councils could do more to stop this than individual members of the community and elected members and staff being out bureaucracy as the main contributing factor. practice. It is time for more efficiency and the use of a stronger voice were invited to participate in the survey. of touch with the people they serve, as coming from the Local Government Association. Councils need to be more Survey respondents were asked in the first Interestingly, many admit that retaining councils become too large and impersonal. supportive of the LGA and this would make a huge difference. instance what benefits (if any) they thought There were also big concerns with the shift the current local government boundaries further local government amalgamations in focus to large projects at the expense is potentially unfeasible and 46% would I think that we should collectively review this whole concept of local would have on their community. Most of local community issues and needs, and support further mergers. Reasons include government amalgamations. There needs to be consideration given to the commonly, residents thought there would the loss of a sense of identity, village feel a lack of resources, narrow vision and efficiency of three tiers of government. So much of what was promised in be a reduction of costs and overheads and community spirit, especially when reduced ability to attract quality staff and the way of cost sharing and improved services have not eventuated. I find due to economies of scale and reduced mixed with suburbs with very different external funding opportunities in some that there is a lack of democratic engagement with the community. It seems administration, as well as a rationalisation needs and wants. smaller councils. Of the respondants, that the bigger the Council, the less they feel they need to engage. of resources in terms of the shared use 44% felt that there is potential for community Small councils reduce their ability to gain external funding for large projects of assets, equipment and facilities. Overall, residents generally believe that services to improve, with a focus on home and struggle to maintain financial viability with limited rate based budgets. This, coupled with the larger rates base, council amalgamations would result in a and community care and libraries services. Because of this, smaller councils can only offer limited community services. may lead to an overall improvement of reduction in community engagement and Residents think that planning and building There needs to be far greater emphasis on primary health care and service provision. However, of those that representation. There would be reduced approvals should be kept at a local level, well being. Merged councils have the potential to provide this service. responded to this question, 40% indicated access to staff and department managers especially in relation to heritage issues and “Amalgamation could Retention of smaller council’s may also result in a lack of vision due to the they had difficulty in seeing any benefits in and even less access to local councillors. they believed the development industry mean better quality of restricted thinking of council staff and elected members. amalgamating with another council area. Not only that, fewer elected representative would be the biggest winner of council councillor, better leadership positions could result in increased amalgamations. On the whole, 64% of A more visionary and holistic view of planning the future is required. Larger and better resources to competition and more resources would residents and community groups surveyed council regions should result in a more even spread of resources within the service the community.” be required to stand for council – believed that amalgamation is not a dirty community. This is what we were promised, but it is a long time coming. something that could discriminate word, however it is - as summarised by Anonymous against typical residents. Bryan Hearn, Community Volunteer, one that must be approached with caution and a willingness to compromise.

10 Amalgamation - Is it a dirty word? A collection of your thoughts, opinions and stories. 11 “Amalgamation is not a dirty word. In fact it should be talked about again - its been My Story 15 years and the time is right for another round of amalgamations. Nathan Paine The bar has gotten higher from a performance standard” Executive Officer, Property Council of SA

John Comrie Although I was at University during the 1997 South Australian local Director, JAC Comrie Pty Ltd government amalgamations, I have seen the positive end results of the move. Immediately after the amalgamations took place it looked like they wouldn’t work, however I believe it takes 10-15 years for the benefits to be shown. The amalgamations had a positive impact in areas such as Norwood Payneham and St Peters, Port Adelaide Enfield and Onkaparinga. In my view, some of the benefits include The Private Industry Perspective increased viability due to the greater rates base, which in turn provides the ability to hire and retain high quality staff. For example, instead of 2 or 3 planners at each council, you could have 6 or 7 planners focussing on master planning as well as development control. The greater rate base also offers the ability to provide a higher level of quality infrastructure and the ability to provide a higher quality Local government plays a major role ability to have more influence on the What do the statistics say? of service. Another positive is critical mass which provides greater in the economic development of the state. decisions made by other government influence when lobbying the state government. It is responsible for approximately bodies in relation to issues such as public Over half of the respondents from the I believe it is not an issue of ‘if’ but more so an issue of ‘when’ $10 billion worth of infrastructure including transport, main roads, hospitals, economic private sector believe amalgamations amalgamations will take place, however I would not necessarily important transport links, it controls planning development and the protection of the would result in the overall improvement of advocate for one super council. In terms of the proposed ‘north, south, and building approvals, it is responsible environment. The majority of respondents the operation of local government, with east and west council areas’, you can’t mix distinct communities, such for more than 8000 direct jobs and also believe that larger councils are better 58% agreeing that there would be an as Walkerville and Port Adelaide Enfield, or Prospect with Playford, management of over $1 billion worth equipped to deal with ‘big picture’ issues improvement, 25% not foreseeing any even though they are all in the north as their needs are too different. of services each year - these functions such as population growth, stormwater improvement and 17% unsure of the overall It seems the ideal scenario for amalgamations in SA is for them to alone are vital to business success in management and the provision of “Amalgamations may benefit coincide with the seven regions for metropolitan Adelaide noted in the outcome. In addition, 45% of respondents South Australia. Councils also jointly infrastructure. The broader vision and contractors by resulting state government’s 30 Year Plan. support the further amalgamation of South fund Regional Development Boards focus as well as the willingness to progress in increased workloads and Australian local government areas, while While I support amalgamations, I do not think larger council regions and Business Enterprise Centres with would certainly benefit the private industry, standardisation across 24% opposed future mergers and almost a would result in a more even spread of resources because there will the state government, providing direct particularly the development industry. larger regions. The service third were unsure. Planning, capital works always be a power block and spending tends to be decided through support to business . improvements would benefits political agendas. Waste services are shared anyway; library services (5) and asset management were seen as the The private sector jumps at the opportunity residents.” are defunct; planning will benefit (especially development approval), particular services that would be improved Respondents from the private sector to deal with fewer councils across the community services (soft services such as bus runs picking up oldies on if councils covered much larger areas. The highlight the benefits of economies of scale board resulting in uniformity with policies David Cavanagh hot days) will be the big winner. private sector believe that service delivery resulting from the increase in rates base and and procedures. Development assessment Chair, The McLaren Vale and financial implications are extremely Councils could continue to fight amalgamations and have their powers the costs saved on the provision of services, was one area where inconsistencies Business Association important when considering possible stripped away or they could just come to the table with a solution. the sharing of infrastructure and equipment frustrated respondents. If councils won’t stand up, amalgamations need to be lead by the amalgamations. and the reduction of the number of highly state government. Amalgamations need political buy-in (they can’t just paid council officers. Particularly valuable The primary concern of respondents from review and step away). The answer is probably a royal commission Responses gave the general opinion to local small business is the means for the private industry is the increase in red similar to that held in Auckland resulting in their amalgamation that the private industry (particularly greater support and resources. This can tape and bureaucracy that can come with program. The matter needs to be disassociated from the political the development industry) and the state be directed by larger councils towards the larger organisations. One respondent system (as it is generally considered political suicide for the party government would be the winners if further economic development of a wider region, laments the communication breakdowns in power). amalgamations took place, however it is “Amalgamations could benefit as opposed to apparent ad hoc and between departments as inevitable. considered that amalgamations would on contractors with more opportunities Amalgamation is certainly not a dirty word, it is a ‘necessary outcome’ lacklustre efforts in segmented zones within There is also a general perception that and I support further amalgamations. the whole negatively impact the community for increased revenue, though councils individual council boundaries. larger councils with greater budgets and may benefit from possible cheaper and their representatives. Of those influence would result in an increase in charge out rates.” surveyed, 67% believe Amalgamation is Another benefit of local government political agendas and may not result in not a dirty word, with the general sentiment amalgamations identified by respondents an even spread of resources across the Dragan Cojich that they should be approached with the from the private industry is the potential council area. Project Manager, VIP Electrical appropriate transparency and consultation. for effective lobbying and the perceived

12 Amalgamation - Is it a dirty word? A collection of your thoughts, opinions and stories. 13 “Councils take different approaches to natural resources management (NRM) and artificial boundaries do not always My Story benefit good NRM outcomes.” Local Christel Mex Barry Parsons Director, General Manager Corporate and Member Communications and Engagement, Government Services, Local Government Association Adelaide and Mt Lofty NRM Board I was a senior manager at the City of Munno Para for 20 years, Association and acting Chief Executive Officer of that council for approximately six months in 1996/97 prior to the amalgamation with the City of Employees’ Elizabeth to form the City of Playford. There are some pros and cons regarding amalgamation. The positives include an increased rates base, offering the opportunity for economies State Government Employees’ Perspective Perspective of scale in the provision of services to residents. Additionally, larger Councils may have greater influence in negotiation with other spheres of government to advocate for better outcomes for local communities. I also think that larger councils may be better able to afford a range of skilled managers and employees while reducing the duplication of assets such Within the three tiers of government Buying power would be increased to What do the statistics say? The Local Government Association (LGA) as offices and depots. in Australia, local government’s role is gain greater efficiencies in delivering is the key representative body of local However the downside shows a short term impact of the loss of to represent the interests of the local programs and services. Great efficiencies government in South Australia. The further amalgamation of South established cultures, processes and networks which requires time and community to both state and commonwealth could be gained simply from reducing LGA president Felicity-ann Lewis said resources to re-establish. There is also the loss of staff (especially senior Australian metropolitan councils was governments, and to collaborate amongst duplication and the continual reinvention the organisation supported the last round staff), with consequent loss of knowledge and experience. With the supported by 88% of the employees to the three tiers in planning and delivering of the same wheel. of amalgamations in the late 1990s, loss of staff comes the high cost of redundancy payments, impacting state government who participated in the services and setting public policy . when the state’s councils were cut from adversely on service provision temporarily. Additionally, loss of ‘local’ (6) survey. Of these, 40% suggested that However the importance of retaining local services where there is a rationalisation of sites such as offices, State government employees were asked 118 to 68(7). Survey respondents cited councils be amalgamated by east, west, community halls, and libraries, especially in rural areas. about their experiences with councils and in local government is acknowledged. economies of scale, improved buying north, south and central Adelaide. ultimately whether further amalgamations Residents and local businesses may feel power and reduced duplication as the There is a balance to be struck between small, highly accessible and The survey respondents rated service could facilitate more effective working that the service from a smaller council is main reasons for encouraging further local accountable local government, and larger more cost effective councils delivery, costs and environmental impacts relationships between the state more personalised and promotes stronger government amalgamations. Larger council which may not interact as closely with the community, although some as extremely important considerations. government and local government community values; local issues may be lost boundaries would provide for consistent still do. It is very difficult to know where the ‘tipping point’ is, as it 77% agreed that planning and capital within South Australia. in larger council areas. However, the down standards across larger council areas and depends heavily on the policies and practices adopted by council works would be improved if councils elected members, managers and staff. side of this local contact is that sometimes more scope to preserve natural resources covered much larger areas and 54% could The opinion shared by state government it is the ‘squeaky wheel that gets the oil’. that cross council boundaries. Generally I do not support further amalgamations as I believe that foresee improvements in asset management. employees is that having 68 councils amalgamations can take the ‘local’ out of local government. It is A clear majority considered that local presents obstacles in implementing It is often the historic significance and possible for some of the benefits of amalgamation to be achieved by government amalgamations would have a programs due to inconsistencies in council community ownership of an area that resource sharing between existing councils to deliver more cost effective positive impact on the state government. policies and procedures, as well as give people a sense of local identity. What do the statistics say? services, and there are numerous examples of this. However there may in staff opinions. There is unnecessary If these aspects could be retained while nonetheless be a strong case for an amalgamation in specific instances when the community supports it, and a council is struggling to provide duplication of by-laws and inconsistencies amalgamating councils to improve The majority of respondents from the LGA and maintain services. and inefficiencies in operations. The large service delivery, the broader needs would agree with further amalgamation number of small councils often means that of the community could be provided to some extent. Despite the lean towards the big picture is often lost sight of and more efficiently while retaining the “Amalgamations can result in amalgamation, 75% of respondents who lessons learned are not shared. Larger community feel. lower costs through combined have been through the council merging and less councils would create greater process were unsure if there was an “The reality is, each community is services. Community services can consistency across the metropolitan area. still be maintained and improved overall improvement as a result. Even so, different in its circumstances and If councils pooled their resources, better through the savings made. amalgamation is not a dirty word for values. This is the very factor that regulation of building and construction of these savings are realised Some when 66% of the LGA respondents. makes local government so valued. activities could occur, resulting in more unused assets are sold off.” The capacity to hold the local view consistent development with better against state and federal views… compliance. Roger Whitington Losing this would be a negative.” Department for Transport, Energy and Infrastructure Anonymous

14 Amalgamation - Is it a dirty word? A collection of your thoughts, opinions and stories. 15 “Resource sharing is too hard and has a disappointing record. It won’t generate a significant proportion of the benefits that are realisable unless there is a legislative framework”

John Comrie JAC Comrie Pty Ltd

Shared services Conclusion

The survey found a strong belief by Survey respondents were typically in favour Research conducted in preparation for Respondents from rural areas were highly Overall the survey found that there is respondents that council services such as of the concept of shared services where this report provided insights into the huge aware of the opportunity to improve clear support for further amalgamations planning, capital works, asset management, economies of scale could reduce the cost personal and professional impacts that compliance with legislation which could particularly where cost benefits can be waste and miscellaneous community of service delivery however they were also previous council amalgamations had on result from more experienced staff and more shown. It is possible that some of the services would be improved if councils very clear that face to face customer service employees and elected members who funding, but were particularly concerned same benefits may be achievable through covered much larger areas. Amalgamation needed to be retained at a local level. experienced them first hand. While there about the impact that larger geographic the ‘pseudo amalgamation’ options of alternatives such as shared services have remains widespread support for further regions may have on the ability of both shared services and group purchasing been successfully implemented by South amalgamations, respondents clearly elected members and the administration to which have been found to work well Australian councils for waste collection, identified that the manner in which the remain in touch with local issues. They also throughout South Australia. purchasing and various community services amalgamation is rolled out determines highlighted that the provision of key services Councils and government need to be such as libraries to name a few examples. whether the experience is positive or such as libraries and community centres very clear about what they seek to negative for council representatives. needed to be maintained at a local level achieve should further amalgamations Cooperative agreements such as the to ensure that the rural communities had be considered, particularly as there is G6 Purchasing Group formed by six of Whether stakeholders external to councils access to facilities and activities. Adelaide’s largest metropolitan councils operations viewed amalgamation as a no ‘one size fits all’ option and as the have proven that this option can be dirty word was strongly influenced by the The view presented by employees of the survey data revealed, it can take years successful in reducing direct and indirect respondent’s perception of council. Private Local Government Association suggested to recover from both the financial and purchasing costs as well as improving industry respondents supported the prospect that previous amalgamations had resulted energy expenditure required to undertake delivery and quality of services. Further of common policies and procedures that in a short term loss of focus on local issues an amalgamation. tangible benefits are also realised by each further amalgamations may offer but also while rebuilding from the amalgamation So, is amalgamation a dirty word? participating council over that which would flagged the potential increase in red tape process. However there were opportunities The word on street is no, have been achievable, should any G6 that may result from having to deal with for benefits resulting from economies of but where do you sit? council have undertaken that project or larger organisations. scale in the medium term. activity individually(8). Other South Australian Likewise community groups were hesitant, The move towards the widespread shared purchasing examples include the “We don’t necessarily need bigger concerned about the potential decrease amalgamations undertaken in 1997 Local Government Corporate Services councils. Benefits would be in community engagement and reduced was promoted as beneficial to council (LGCS), the Eastern Region Alliance and gained from implementing standard access to staff as a result of additional and communities in terms of cost savings the Northern Areas Waste Management policies and internal operational bureaucracy. Each of the above concerns and efficient provision of services. However Authority (NAWMA). procedures across a larger number of council areas.” are valid and would require a concerted it appears that actual improvements in effort by amalgamating councils to service provision are predominantly Keith Bilsborough ensure that these communities did not anecdotal and the proposed cost savings Environment Protection Authority feel isolated from council as a result of difficult to quantify. an amalgamation.

16 Amalgamation - Is it a dirty word? A collection of your thoughts, opinions and stories. 17 The Emerging Leaders Program has been a valuable During my time throughout the program I have enjoyed experience for me. I feel as though the networking and the challenges that have been delegated. I have also the general knowledge of local Government I have had the opportunity to meet with several leaders who gained has been an important learning curve in my spoke of their experiences and the challenges that will professional career. approach us in the future and how to deal with them.

Ben Hall Darryn Moyle Arboriculture Workgroup Leader Leading Worker Environment & Parks Assets City of Holdfast Bay City of Onkaparinga

The emerging leaders program helped open my eyes to The program was a profoundly positive experience, the challenges faced by today’s leaders. The course has which saw my confidence and self awareness really motivated me to take the next step in my career improve, my network expand and my passion for local and develop my leadership skills. government reinforced. I am grateful for the opportunity.

Andrew McSeveney Cherie Gill Senior Asset Management System Officer Senior Development Assessment Officer – Planning City of Salisbury City of Tea Tree Gully

The workshops, project meetings, debriefs, and The program has been a great opportunity for me to personalities have definitely made this all worthwhile explore my leadership style as well as expand my for me. Cheers to everyone who volunteered their time networks in local government, while making some to support the program. great friends along the way.

Matthew Spearman Sara Morrison Manager Information Systems Transport Engineer City of Burnside City of Charles Sturt

Wow. An amazing opportunity to work along side I gained from hearing the experiences, both Who are we? and develop friendships with future CEO’s /senior professional and personal, of current leaders. management and also be acknowledged within my The program gave me the opportunity to reflect Twenty participants from 15 South Australian councils participated in the 2010 Local Government Managers Australia organisation as an ‘Emerging Leader’. I have networked on my career direction and personal goals. and listened to incredible people through the program. (LGMA) SA, Emerging Leaders Program. The program supports the development and retention of current and aspiring Gaye Andrews Thank you for the journey. leaders working within local government. It is an exciting program that challenges participants by providing unique Coordinator Volunteer Services learning experiences through non-traditional methods and focuses specifically on developing leadership skills rather than Johanna Bennett City of Mitcham management skills. This project is the product of a collaborative effort from all of the 2010 participants. Project Officer - Events City of Onkaparinga Merryn Walton The program has increased my self awareness Besides developing as a leader throughout the Development Officer - Compliance of the importance of leadership. program, I really enjoyed the opportunity to network I would highly recommend the emerging leaders City of West Torrens with people from other councils and share our program it provided me with a great opportunity to Brett Kahland knowledge and experiences. develop my professional networks and communicate Senior Consultant Strategic Procurement with staff from other councils. Priceless! While the program focussed on leadership, having Adelaide City Council Dale Sutton Engagement Coordinator Mark Crabtree the ability to network and share experiences with other council staff, including CEOs and senior management, City of Onkaparinga Youth Development Officer The opportunity to interact with other professionals and City of Prospect & Town of Walkerville was invaluable. leaders was truly invaluable. The program was very informative and definitely a worthwhile experience The program itself was inspirational, in particular Liz Bailey engaging with CEOs and senior managers. The program broadened my skills base and was a IT Systems Analyst Geoff Parsons I also enjoyed liaising with my colleagues from great experience to have had the opportunity to network City of West Torrens Manager Development Services other councils. with colleagues from other councils on this journey as Mid Murray Council an Emerging Leader. George Kyros During the year we have participated in some great workshops with guest speakers who delivered honesty Civil Compliance Officer Channa Senanayake and insight. It has been a time to review, reflect and I found the most valuable aspect of the program the District Council of Mt Barker Team Leader Asset & Systems Accounting refresh skills and practices and grow professionally to generous donation of time by senior managers and City of Tea Tree Gully CEO’s from a number of organisations, who shared Previously at the City of Unley meet the challenges and opportunities. their journey with us. Good theory. Great practice. Generous networking. Henry Haavisto The course provided participants unique access to the Marco Wenzel Meeting the challenges of the program together, has Manager Urban Trees world of the Council Executive and gave me confidence Team Leader City Compliance brought out the best in each one of us. Campbelltown City Council City of Charles Sturt to set my career goals higher, faster than I had previously hoped. Helen Christie Team Leader HACC Program Sam Kenny Town of Gawler Deputy Manager Civil Services City of Salisbury Previously at the City of Salisbury Previously at the Town of Gawler

18 Amalgamation - Is it a dirty word? A collection of your thoughts, opinions and stories. 19 The Results

The following graphs demonstrate the responses to the question ‘in your opinion, is amalgamation a dirty word?’ from each stakeholder group.

So, is amalgamation a dirty word?

Acknowledgements 9% 15% 17% 8% 28% Local Government Managers Australia (LGMA) 23% Locher Human Resources’ 68% 63% Fuji Xerox (printing partners) Interviewees and Survey partipants Participating Councils Opinion of local Opinion of government employees respondents from rural areas Graphic Design by Sarah George Group photography by Richard Humphrys 69% Photographs supplied by the City of Charles Sturt and the District Council of Mt Barker 9%

36% 41% Overall opinion

64% 50%

Opinion of Opinion of those who References elected political representatives represent community groups (1) Planning SA website (2011) SA Government Regions http://www.planning.sa.gov.au/go/maps/-land-and-population-data/sa-government-regions/sa-government-regions (cited 25 March 2011) (2) Shape Your World website (2010) Emerging Leaders Program http://www.lga.sa.gov.au/site/page.cfm?u=1266 (cited 21 November 2010) 17% 17% (3) Tiley, I. and Dollery, B. (2010) Local Government Amalgamations in New South Wales, Centre for Local Government, UNE (4) Kennedy C. (2010) New Merger Bid, City North Messenger, September 29, 2010, Adelaide 100% (5) LGA Website (2010) About The LGA http://www.lga.sa.gov.au/site/page.cfm?u=197 (cited 21 November 2010) 66% YES (6) Department of Planning and Local Government (2010) Office for State and Local Government Relations, Government of South Australia, http://www.localgovt.sa.gov.au/home (cited 14 December 2010) NO (7) Wills D. (2009) It’s Time To Trim Our Councils, The Advertiser, September 19, 2009, Adelaide Opinion of private industry employees Opinion of state government employees UNSURE (8) G6 Purchasing Group website (2011) http://www.g6pg.com.au/index02.php?id=9 (cited 7 January 2011)

20 Amalgamation - Is it a dirty word?