Memoranda of Understanding

A significant step towards achieving better outcomes for ratepayers by improving the efficiency and effectiveness of local government has been taken today.

Two Memoranda of Understanding were signed today for studies to examine options for voluntary amalgamation and strategic shared services for Greater Hobart Councils and South East Councils.

The council areas are made up of:

• Greater Hobart Councils: Hobart City, Clarence City, Glenorchy City and Kingborough Councils; and
• South East Councils: Clarence City, Sorell, Glamorgan-Spring Bay and Tasman Councils; including a subset of options including:
o Clarence City, Sorell and Tasman Councils;
o Sorell and Tasman Councils; and
o Sorell, Glamorgan Spring Bay and Tasman Councils.

I want to congratulate all those who have been involved in the process to date for the mature contribution they have made to the debate.

Looking more broadly across the State, it is anticipated that all eight Northern councils and all nine Cradle Coast councils will submit proposals for funding to investigate comprehensive shared service arrangements for their respective regions.

This work is well underway and I encourage the North and North Western councils to finalise their proposals as quickly as possible.

To progress the MoU’s, proposals with shared services must incorporate initiatives that involve significant business activities, both small and large. They must be supported by a formal agreement between the participating councils and have a sound governance structure in place. Furthermore, the proposal must provide substantial benefits to ratepayers and be sustainable into the long term.

We must look genuinely and openly at significant change, not for the sake of change itself, but because we owe it to the ratepayers and to the broader community. With the completion of the feasibility studies, there will be a firm foundation to consider the next steps in improving the efficiency and effectiveness of local government in Tasmania and see it play its part in making Tasmania the place to live, work and invest.
Peter Gutwein, Treasurer, Minister for Planning and Local Government