Bob Baldwin (Paterson, Liberal Party) Share this | Link to this | Hansard source

Tonight I rise to raise the issue of council mergers—in particular, the proposed merger of Port Stephens and Newcastle councils. On this issue I speak with more understanding than most, as I served on Port Stephens Council from 1999 to 2004. Let me make it abundantly clear from the outset that I am against this merger. More importantly, my community is against this merger. A petition of over 1,000 signatures shows that 90 per cent are against this merger.

Port Stephens Council, like all councils, supports the government's direction in strengthening local government based on logic, but this proposal seems to defy logic. Port Stephens Council has been declared fit for the future by the New South Wales government. It has met each and every benchmark, whether it is financial, of scale and capacity requirement or operating at a healthy surplus. That is because Port Stephens Council, over the decades, has built very strong commercial investments and alternative revenue streams, which keeps the rating base very affordable. That is in stark contrast to Newcastle council, which has been a financial basket case.

When former mayor Jeff McCloy was elected he turned it around and got it on a pathway to financial resurrection. But after he resigned the new Labor mayor, Nuatali Nelmes, seems to have gone back to the future with expenditure and wanting an increased base rate. Port Stephens Council delivers 51 different services and provides over 500 local jobs through that. It strives to provide the best effort for its community, and that is reflected in the benchmark surveys that come back to council. It has a satisfaction rate in excess of 80 per cent. That is one of the highest levels for an LGA.

This merger proposal is supposed to be based on economic modelling, yet there has been an independent review of the New South Wales government's own modelling, which shows that it is fundamentally flawed. It is fundamentally flawed because it is inconsistent and based on outdated data from 2014. It does not even adhere to the New South Wales government's own treasury guidelines; it is using nominal values and not present values. Their analysis shows that there will be a $65 million saving. The review contained in this proposal shows that it will actually be a $20 million cost to Port Stephens Council. Deputy Speaker, guess where that comes from: out of the ratepayer's pocket. Clearly, Port Stephens Council as a standalone council is more efficient and a very successful entity.

When the whole proposal was built it was supposed to be built around like communities. I say to you, Deputy Speaker, Newcastle and Port Stephens are very different. Port Stephens is made up of villages and coastal communities. It is tourism-focused. It has dispersed settlement patterns, with 490 properties on a farm rate versus 18 in Newcastle. Yet Newcastle is highly urbanised and industrially and commercially focused. It is the world's largest coal port. It is an industrialised economy. So the difference is absolutely striking. It is as different as the financial capability of each of those councils.

One of the other concerns of the people in our community is the lack of representation. The population of 65,000 residents in Port Stephens has 10 elected representatives. By the time it is merged with Newcastle there will be 230,000. That means we will get three out of 13 votes. That is three out of 13, with most of the money holding. That is just unconscionable. Our say in all of these community matters will, actually, shrink. What we fear is that the debt-ridden Newcastle council will seek to access the financial books of the Port Stephens Council to settle its debts. Newcastle council was not declared fit for the future, but Port Stephens is. So why the merger?

The other area of concern among our people is the increase in rates. Business rates seen in modelling through to 2019-20 show that businesses in Port Stephens will pay $4,600 in rates, yet Newcastle is $13,00. That is an increase of $8,400. Residences will go up by more than $500 in Port Stephens—a 45 per cent increase—because of the special rate levy approached by the Newcastle council and approved by this Liberal government in New South Wales.

I reject the proposal. I urge the Baird government to rethink this proposal. Submissions close on Sunday, the 28th. I urge everyone to put forward a submission opposing the merger.

Bruce Scott (Maranoa, Deputy-Speaker) Share this | Link to this | Hansard source

It being 9.30 pm, the debate is interrupted.

House adjourned at 21 : 30