Cootamundra-Gundagai council one step closer to a demerger as key report is released

After the state government forced the council to merge in 2016, tensions have dramatically increased between the two communities.

Released this week, the Local Government Boundaries Commission's report found the two councils should be demerged.

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A survey undertaken for the commission indicated a substantial majority (82 per cent) of residents in the former Gundagai Shire support a demerger, while 79 per cent of residents in the former Cootamundra Shire were of the same opinion.

Gundagai Council in exile chairman Paul Mara said it's great news.

"We're pleased with the report's outcome," he said.

"It was particularly pleasing the commissioners took note of the emotional and mental toll the issue had on the people of Gundagai.

"We'd again ask the minister [for Local Government Wendy Tuckerman] follow through and demerge the councils."

Mr Mara said while progress has been made towards a demerger, "the decision to merge the two councils should never have been made in the first place."

He said the state government's 2016 decision to merge the two councils was against the will of the majority of people, and the report has noted that there is still strong opposition to the decision.

Responding to the report, former long-serving Gundagai mayor and current Cootamundra Gundagai councillor Abb McAlister said it's great news.

"I'm really happy and the vast majority of people here want it," Cr McAlister said.

Cr McAlister said the situation has deteriorated since last year, leading to greater support from the commission.

"From day one premier Dominic Perrottet said he would listen to the people, so I certainly hope he and the minister for local government will this time," he said.

"Now we just have to hope the minister will look favourably on the report and grant a demerger."

Cr McAlister said the finances of all merged councils across the state have suffered and he believes the cause is the forced mergers and not mismanagement.

"It's been six years since the merger and we've lost $31 million in deficits, and it doesn't look like it is turning around.

"We've had to hit people up with a rate rise of 55 per cent and a 30 per cent rise in fees and charges."

He also said the merger was having a significant social and psychological impact on the two communities.

Cootamundra-Gundagai Mayor Charlie Sheahan was also "quite pleased" with the report and its outcome.

"The commissioners have done a good study of the issue and have taken on board the exact situation the community has been in the past five years," he said."

"I'm now looking forward that the in the next 28 days the minister will make a decision to grant our community what their wishes are."

Boundaries Commissioner Rick Firman also backed the de-merger and said the situation has clearly deteriorated.

"You can't ignore it, particularly when there was an amplification of mental health concerns with council staff and councillors themselves," he said.

"That weighed heavily on us... and it was very confronting."

With the commission having now handed down its report, Mr Firman said it was important to respect that the ball now lies in the minister for Local Government's court.

"We have to respect minister Tuckerman and we now have to give her time to seriously consider our report and make an informed determination," he said.

Last year the commission released its first report that saw the four commissioners divided over whether the Cootamundra-Gundagai Council should be demerged.

As a result, then minister for Local Government Shelley Hancock decided against demerging the councils.

However changes to state government legislation in 2021 opened the door for merged councils to make submissions.

The Cootamundra-Gundagai Council seized on this opportunity, presenting a submission to the commission in support of the demerger.

The commission's second report released this week saw members vote three to one in favour of a demerger.

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