The NSW government's 'Fit for the Future' reform agenda was the major focus of the terms of reference for the inquiry by the General Purpose Standing Committee. The financial sustainability of local government, the costs and benefits of amalgamations, the role of the Independent Pricing and Regulatory Tribunal (IPART) in reviewing the future of local government, and the impact of forced amalgamations on local communities were some of the issues examined by the committee.

The committee's recommendation will be welcomed by Greater Taree City Council as its future as a stand-alone local government authority is in question. It was branded 'not fit' by the Independent Pricing and Regulatory Tribunal (IPART) against 'Fit for the Future' criteria set by the NSW government last year.

Two options are on the table for council as recommended by the Independent Local Government Review Panel in 2013 - for it to merge with Gloucester or become a council in a Mid North Coast joint organisation. However, council is working on a third option to improve its financial sustainability - it is proposing a Special Rate Variation (SRV) to secure millions more from ratepayers to help it to manage its infrastructure maintenance requirements. It is currently developing a community consultation process for this proposal.

Council's senior leadership team will welcome the findings of the NSW parliamentary committee inquiry as it works to prepare its response submission to the IPART findings - it has around three weeks to deliver its response.

Committee Chair Paul Green reveals the parliamentary report makes 17 recommendations and nine findings and says members found many of the 'Fit for the Future' measures unreliable.

"We therefore called on the NSW government to withdraw its statements that 71 per cent of Sydney councils and 56 per cent of regional councils are 'unfit' for the future. We also recommended that the government commit to a policy of no forced amalgamations other than in exceptional circumstances," Mr Green said.

"This committee has listened to councils and other stakeholders around the State and we were concerned that what began as a consultative approach to reform, driven by both the State government and the sector itself, has descended into a rushed and flawed process, which has focused too much on council amalgamations.

"Reforming local government is nothing new, but it is vital that we get the right reforms at the right time and in the right order, if we want to get this sector back on track.

"We've seen how committed councils are to their communities and we know that they are keen to keep improving. "The government needs to build a bridge and get back to working with the sector, so councils across this State can keep on building the bridges we need, maintaining the roads we use and providing all the other services that our councils deliver.

"I call on the NSW government to take heed of our report and reconsider its plans for the future of local government before any steps are taken in relation to council amalgamations," he added.

The committee's report, along with other information about the inquiry, is available on the committee's website: www.parliament.nsw.gov.au/localgovernment

ainslee.dennis@fairfaxmedia.com.au