SHOALHAVEN City Council will be tempted by a $13.5 million state government incentive to seek a merger with neighbouring Kiama Council, according to Cr Andrew Guile.
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Cr Guile said Shoalhaven would be driven to a merger because of its “poor financial position outlined in the recent sustainability report”.
“Hearing the Minister for Local Government Paul Toole talk about the benefits of reform at the NSW Local Government Conference leaves little uncertainty for areas like the Shoalhaven. With the consolidated financial returns showing that the 152 councils across NSW are losing more than $1 million a day, I can understand the government’s passion to see reform.”
Cr Guile said Shoalhaven was facing a deficit in its general fund of more than $1.3 million and projections for the next 10 years showed deficits of between $10 and $13 million.
“On top of this parlous financial outlook, Mayor Gash is on record as wanting to merge Shoalhaven and Kiama together. This would result in a massive increase in Shoalhaven rates over time which also correlates with the staff recommendations for rate increases in the financial sustainability report.
“Not only can Shoalhaven families not afford such increases, we also do not want to lose our local identity as a region. For all its faults, Shoalhaven City Council has the opportunity to represent the residents of our 49 towns and villages and this would be diluted if not lost in any merger.”
