Mr. Templeman questions the funding and justification for forced local government amalgamations, while Minister Simpson defends the reform process, citing sector demand and cost benefits, despite awaiting final reports and costings.

AnsweredQoN 336Legislative Assembly
Asked
13 May 2014
Portfolio
Local Government

QuestionView source ↗

LOCAL
GOVERNMENT — AMALGAMATIONS — FUNDING
336. Mr D.A. TEMPLEMAN to the
Minister for Local Government:
I refer to the state budget, which has allocated a paltry
amount to this government's forced amalgamation agenda.
(1) Why is the
minister making ratepayers pay for this agenda when they still have no clear
justification of its benefits?
(2) What will
the minister do if councils refuse to be involved with his unfunded
amalgamation process?

AnswerView source ↗

I thank the member for Mandurah for the question.
(1)–(2)
The interesting part here is that when I came into this job as Minister for
Local Government last year, the sector clearly said to me, ''We need to
make a decision about this reform process. It's been going on way too
long.'' For the past 12 months we have all been through a process with
maps at a series of meetings to come out with a model for local government for
that to happen. We have moved to the next section of the reform process, as the
member is very much aware. The point where we are at today is that I do not
know actually how many local governments I will have in July. I am waiting for
the Local Government Advisory Board report to come out. I can estimate
somewhere between 14 and 15 or maybe 16. That is one of the areas I have to
work on to get there.
Secondly, the costing for this
process has to be worked through with the local governments, as they are doing
some work in their local implementation committees with the matrix and the
toolkit on the full cost of reform.
Mr D.A. Templeman interjected.
The SPEAKER :
Member for Mandurah!
Mr A.J. SIMPSON :
The question is obvious, Mr Speaker. We are putting in a $60 million package
over three years for the reform process.
Mr D.A. Templeman interjected.
The SPEAKER :
Member for Mandurah!
Mr A.J. SIMPSON :
The reform package has a raft of grants and low-interest loans as well to help
in this process. More importantly, however, the cost of doing nothing is a
bigger cost than what we are doing today.
Mr D.A. Templeman interjected.
The SPEAKER :
Member for Mandurah, I call you to order for the second time.
Mr A.J. SIMPSON : I
am awaiting the Local Government Advisory Board's report. I am
confident we can work through that and come up with some really good costs. We
will work on how we can best deliver services to our ratepayers. I have a
report on my desk from the Western Australian Local Government Association that
says local government reform will cost somewhere between $60 million and $100 million.
I asked whether it is $60 million or $100 million. The reality is there is $60 million
in the budget over three years. Based on its own modelling, that is what is
required to deliver the reform process. We are in the process of working out
how we can deliver those services and ensure, more importantly, that our
ratepayers receive better services for their rates.

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