Tales from the Front Line #4:Tamworth 2015
Amalgamations: To merge or not to merge?
Tales from the Front Line #4: Tamworth
History
The Tamworth story had its origins at the time of the NSW Government reform program for
Local Government amalgamations in 2003 and 2004. Bob Carr was Premier and he had
many “Thoughtlines” including the need for less Councils.
The Premier outlined his case for reform at the 2003 NSW Shires Conference:
“So let’s come back to this conference next year with fewer but stronger councils. Let’s
bring an end to the annual ritual of the Minister naming poorly performing councils in
Parliament. Let’s see councils with stronger balance sheets, better equipped to serve the
people who pay their way, the ratepayers of NSW.
I look forward to your constructive proposals for reform. This is your moment, your
opportunity. Seize it, because the shape of local government for the next 50 years is in your
hands.”
The big day was 17 March 2004 and included the amalgamation of five Councils – Barraba,
Manilla, Tamworth City, Parry and Nundle.
The new council – 55,000 population,10,000 sq km area 190km top to bottom, 60 km wide,
$130 mil budget, 700 staff, 17 towns/villages, 2,000 km sealed, 1,400 km unsealed, 100
timber bridges, 6 libraries, 13 landfills, 6 pools, 5 sewer schemes, 7 water schemes, over 400
council owned buildings.
The Transition from Five Organisations into One: The Process
Key issues in the amalgamation process:
The Formal Notification (the midnight fax) – thanks but no thanks.
Proclamation Provisions –insufficient thought to a range of foundations issues.
Industrial/Employment – the staff are worried.
Democratic Deficit – where did they all go?
Revenue Policies – be careful and Rome was not built in a day.
Service Delivery – it’s all about continuity.
Distribution of Assets and Liabilities – be careful.
1
Tales from the Front Line #4:Tamworth 2015
Communication – is everything.
Social Capital – sense of shared futures.
Economies of Scale – or is it diseconomies?
Economies of Scope – strategic and economic advantages.
Strategic Capacity – increased abilities.
Workers Compensation Premiums – ouch!
Promoting Better Practice Program – culture of continuous improvement.
Outcomes
The Acting GM after 9 months in a status report to Council said:
“...it has been one heck of a ride. In hindsight it appears to have been rather a disjointed
and disorganised beginning – but there was no roadmap to show anyone where to go, how
to get there, how fast to travel, where to slow down or where to stop to reflect on progress
or enjoy the scenery and celebrate. Eventually it came together...”
Benefits and Costs
Benefits included:
 Service and infrastructure improvements.
 Investment in regional infrastructure previously not possible.
 Increased capacity to take on more, particularly large scale projects.
 Increased capacity to become an effective political advocate.
 Stronger and more equitable rating system.
 Greater capacity to stimulate and promote growth of local economy.
 Significant increase in opportunities for staff career development.
 Improved regional decision making and regional strategic infrastructure planning.
 Infrastructure in smaller communities upgraded to a much higher standard.
 Consolidation of conflicting policies between Councils.
 The opportunity to introduce from scratch new agendas both internally and
externally.
Costs included:




Loss of democracy via decreased Councillor representation.
Loss of institutional connection and institutional attachment.
Increased rates for ratepayers in smaller shires.
Increased rules and regulations for ratepayers in smaller shires.
2
Tales from the Front Line #4:Tamworth 2015
 Loss of productive time early on in implementing important structural reforms,
particularly in the employment area.
 Loss of productive time and additional costs associated with absence of State
government guidelines. Specifically in the areas of industrial relations and a range of
problematic legislative requirements.
 Burdens on staff. Fear and insecurity for many was widespread and unnecessary.
 Loss opportunities and substantive disruptions due to short notice of amalgamation
proclamation.
Conclusion: Friend or Foe
Take home messages based on the Tamworth experience:
1. Remember to focus and be motivated by the simple fact that a brand new
organisation is being created – not an organisation that is a composite of a number
of old organisations.
2. The benefits versus costs “on-balance” conundrum.
3. The justification for an amalgamation is not all about mathematical comparatives,
coefficients of efficiency, statistical formulas, and it’s certainly not about what’s best
for Councillors, GM’s or staff.
4. Mandatory transition period prior to formal commencement needed.
5. Financial assistance for front end implementation costs.
6. Review of amalgamation legislative provisions and processes needed.
7. Be meticulous in your implementation planning.
8. Communicate, communicate, and communicate.
9. Service delivery guarantees.
10. In the right circumstances amalgamations are an “opportunity” not an “outcome”.
Friend or foe – there is only one opinion that matters!
3