The WA Council Amalgamation Process – How Not to Do It!

1. The WA Council Amalgamation Process – How Not to Do It! -Future of local Government Conference- Melbourne By: Peter Kenyon Director Bank of I.D.E.A.S (Initiatives for the Development of Enterprising Action and Strategies

2. Perth council amalgamation process 'on hold' as Premier concedes reform agenda failed                                          ABC Report by  Andrew O’Connor  10 February, 2015   Plans to almost halve the number of local government authorities in Perth have been put on hold for the foreseeable future, Western Australia's Premier has conceded. The WA Government was trying to cut the number of metropolitan councils from 30 to 16 as part of a policy more than six years in the making to overhaul the sector. But with the WA Local Government Association (WALGA) yesterday withdrawing its support for the reforms and a poll at the weekend rejecting amalgamation plans, the Premier this morning said he had "run up the white flag" on the issue. “The system is broken. It does not work. It does not work. So very difficult to get sensible reform.’ (Premier Colin Barnett)

3. Perth council amalgamation process 'on hold' as Premier concedes reform agenda failed                                            ABC Report by  Andrew O’Connor  10 February, 20 Mr Barnett said “ the weekend rejection of three amalgamations was a clear message from ratepayers and he had now put the entire process "on hold" for the foreseeable future. "I don't think local government is capable of reforming itself. I formed that view over the weekend. They are not capable of reform,” "I've spent an enormous amount of time and effort on this, as has the minister, as has various government departments." He said despite extensive consultation and engagement with councils, mayors and councillors, the process had ended in chaos. "Then, of course, you had situations where you had mayors and councillors supporting it one minute and opposing the next minute.

4. “So it became a shambles. It became a shambles. I accept responsibility, but I don't think I deserve the blame.” “The system is broken. It does not work. It does not work. So very difficult to get sensible reform.’ (Premier Colin Barnett)

5. Quick Potted History 2005 – then Minister for Local Government instigated an inquiry into Local Government Structural and Electoral Reform June 2011- State Government commissioned a report on LG Reform – the Robson Report – released in July 2012 – 30 recommendations including cutting number of local govts from 30 to 12

6. “There’s going to be a reorganisation of local government, one way or another…..I’m not going to spend every day of my life over the next 4 years arguing with local councils, but I’m making it very clear…..that local government is a subset of State Government and the State Government is going to do reform. We not going to override people or be dogmatic about it, but one way or another it’s going to happen..” (June 2013)

7. State Government proposes reducing number of LGs from 30 to 16, but with a focus on “boundary change” rather than “amalgamation” (“amalgamation by stealth” to avoid the triggering of the Dadour Poll Provision) September 2014 – the Local Government Advisory Board issues its “Metropolitan Local Government District Inquiries Report” endorsing Ministers wishes Feb 2015 – Process collapses after three proposed amalgamations where the Dadour Provision was possible were convincingly defeated in referendums

8. Dadour Poll Provision in the LG Act “provide residents with the democratic right of expressing their point of view through a referendum”

9. Why Did it Fail? • Flawed Process from the Start • Hypocrisy and Stupidity • Financial Issues • Internal Liberal Party and Coalition Dissention • Political Realities • People Power and Rage

10. Flawed Process from the Start • No Business Plan or rationale outlining benefits and costs • Perception that it was driven by the Development Lobby and so called economic arguments • Constant changing of the goal posts • Bullying attitudes- Councils having to submit proposals under duress • Poor consultation processes • Playing Councils off against each other • Ignoring international and national experiences

13. Opinions Ignored • “halving the number of councils would not recoup economies of scale..the belief that creating fewer, bigger councils will drive down costs is largely illusory.. The results of amalgamations [in Australia] have not met expectations…..structural changes through compulsory council consolidation have not been effective in achieving their intended aims of meaningful cost savings and increased operational efficiency” (Prof Brian Dollery, Centre for Local Government, UNE)

14. Opinions Ignored • “regarding the benefits of council amalgamations, the evidence that is available does not generally support the view that amalgamations provide substantial cost savings” (Report by University of WA in the Australian Economic Review) • “Researchers have found that larger councils do not exhibit lower unit costs of servicing than smaller ones.” (Prof Percy Allan , Committee for Economic Development Australia Report)

15. If big councils are such a good idea, why is it not happening in the rest of the world? USA – 7,981 European Union-5,693 Switzerland-2,500 France – 1,500 Average in Metro WA – more than 40,000

16. Community Development 101: ‘People do not live in an economy, but in community!’

17. 2. Hypocrisy and Stupidity • Broken election promise • Inflammatory and and clumsy political statements by the Premier and Ministers • Hypocritical position of the National Party • State Government’s own financial management record • ‘Amalgamation by Stealth’ approach by denying most Councils access to the Dadour Provision

18. At the 2013 State Election, the Premier and Minister of Local Government both declared publicly- “there will be no forced council amalgamations…the Liberal Party does not support forced amalgamations.”

23. Community Development 101: ‘Don’t tamper with the fundamental democratic rights of the citizens’

24. 3. Financial Issues • State Government’s own financial management record • Lack of any realistic State Government financial contribution • Huge costs of mergers

25. State Government’s Own Financial Record • Downgrading of its Credit Standing • Borrowed $47 billion - $19,000 per West Australian • Significant power, water, Emergency Services Levy and public transport rises in last budget • Experience of Office of Shared Services

30. 4. Internal Liberal Party and Coalition Dissent

32. “I urge this meeting to come out very strongly and oppose what the Government is doing in this amalgamation process, because I think the people have been lead up the garden path…it is trickery” John McGrath, Liberal Member for South and the Premier’s Parliamentary Secretary

33. 4. Political Realities • Queensland state election • Poor polling of the PM and Federal Party

34. 6. People Power and Rage

35. Community Development 101- ‘There is no power for change greater than a community discovering what it cares about.’ (Margaret Wheatley)

36. ‘Determination, energy and courage appear spontaneously when we care deeply. We take risks that are unimaginative in any other context’.(Margaret Wheatley)

37. NO

40. Personal commitment of Ian Ker

45. ‘Coffin of Democracy’

46. South Perth Mayor Sue Doherty “the community had made it "loud and clear" that it didn't want to merge with Victoria Park. The city received 50.83% of voting packages, with 77.75% voting "no". "Today's outcome reflects the passion and strong community spirit that has galvanised people to truly stand up for what they want for the future of South Perth,” "Both councils fought for our respective communities to have a democratic right to have their say. The community has run a grassroots campaign without any support from the city.”

49. Future of LG reform now rests with councils Tuesday, 17 February 2015 • Local government reform on hold • City of Perth Act progressing as a priority • Claims for further expenses will not be considered The State Government has put its local government reform agenda on hold, with Governor’s orders for boundary adjustments that are not supported by the councils involved to be revoked. Premier Colin Barnett said boundary adjustments for 15 metropolitan councils would only proceed if affected councils provided a council resolution in support of it. “The onus of achieving the many benefits of a modern, streamlined and efficient system of local government now rests with the councils themselves,” Mr Barnett said.  “We will work with those councils that wish to continue on the reform path, or who have proposals for alternative mergers they wish to consider.