The proposed merger of Armidale Dumaresq and Guyra has stimulated some probing discussions. However the NSW Government has been clear, the merger should be viewed on the basis of financial sustainability. That is the fairest criteria for all ratepayers, the community and future generations.
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The figures are sobering for Guyra. In 2013, T Corp (Treasury) assessed Guyra Shire Council as having a Moderate financial sustainability rating and a Negative outlook. In 2013,the NSW Department of Local Government also marked GSC as ‘Very Weak’ and the Sansom Inquiry recommended merger with Armidale, Uralla and Walcha. Last year IPART found Guyra was not Fit for the Future based on the Operating performance ratio, Infrastructure backlog and dependence on state and federal grants. In the last financial year Council recorded a net operating profit of $71,000 (against a Budgeted profit of $1,306,000). The two previous years showed losses of $1,068,000 and $375,000. To maintain some level of sustainability, Guyra Council has sought rate increases above the rate cap of 5.7% in 2014–15 and applied for a further increase of 27.5% in 2016-17. All of these figures, criteria and assessments are contested by advocates for and against reform. But the challenge and trend is clear and our responsibility to current and future ratepayers won’t be wished away.
The Baird Government has put $15 million on the table to help address the costs of merger and infrastructure backlog across the two Councils. That has never been done before. As I said at the Guyra Chamber of Commerce meeting earlier in the week, that is only possible with the strong position of the State’s budget and willingness to take hard decisions. As we are being asked to do in Guyra and Armidale.
The proposed merger can also be looked at as an opportunity. For effective regional promotion; attracting investment; harmonising Council Planning resources and standards; managing shared infrastructure such as a saleyards and roads. Our region is competing against strong regional centres across the State and country. We can’t do it with inadequate resources. Many Armidale people now work in Guyra and Guyra residents utilise Armidale services. The communities and businesses are strongly integrated.
There are undoubtedly risks associated with merging with a larger Council, but the greater risk is to continue along a pathway of large Rate increases; uncertain financial future and deteriorating services and assets. It is up to all of us to be vigilant and ensure an amalgamated Council is fair to all, but that is the challenge for any democracy.
I don’t have much doubt we could continue to stand alone if we were to be satisfied with the status quo including a declining capacity of our Council, but that’s not fair to the next generation.
Scot MacDonald MLC
