Friday 10 June 2016

Oxfam calls on major parties to address the fact that multinational tax dodging is costing Australia billions


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Multinational tax dodging costs us billions





Nearly $AU9 billion that could be spent on schools, hospitals and critical infrastructure in Australia and in poor countries is instead being hidden by Australian-based multinationals in tax havens, according to an Oxfam report released today.

According to The Hidden Billions – How tax havens impact lives at home and abroad, and based on the latest available data, tax haven use by Australian-based multinationals cost Australia around USD $5 billion (AUD $6 billion) in lost tax revenue annually, and cost developing countries an estimated USD $2.3 billion (AUD $2.8 billion) every year.

The report is being launched with an online poll that shows 90 per cent of Australians polled think the Government should do more to stop multinational corporations avoiding paying tax in Australia and in every country in which they operate.

Oxfam Australia Chief Executive Dr Helen Szoke said the report showed how much the public lose out when big companies do the wrong thing and governments don't step in and stop them.

"The Oxfam report, for the first time, puts dollar figures on what Australians and poor people in our region are missing out on because Australian-based multinational companies aren't paying their fair share of tax like the rest of us," Dr Szoke said.

The Oxfam-commissioned poll also found:

·         60 per cent of Australians polled believe the main thing the Federal Government should do to raise revenue is crackdown on tax avoidance by multinationals;
·         90 per cent of Australians polled believe the Federal Government should legislate to prevent all multinationals operating in this country from moving their profits to tax havens to avoid paying tax here;
·         87 per cent think that those Australian companies who operate in developing countries and in Australia should publicly report their earnings and how much tax they pay everywhere.

Globally, tax-dodging is rampant in developing countries, with big companies ripping USD $172 billion (AUD $209 billion) of tax revenue out of their economies in 2014, money that could have been used to fight poverty and generate equality and prosperity.

Dr Szoke also said The Hidden Billions report found that use of tax havens overseas by big businesses based in Australia would cost developing countries USD $4.1 billion (AUD $5.6 billion) in desperately needed revenue for essential public services over the next five years, including many of Australia's poorest neighbours.

"Over the next five years, it's estimated that Indonesia will be deprived of around USD $360 million (AUD $493 million) that could have gone towards education, and PNG stands to lose around USD $17 million (AUD $23 million) in expenditure on essential services such as hospitals, schools and sanitation," Dr Szoke said.

"This is shocking, given in PNG, 60 per cent of the population don't have access to clean water.
"In Ghana, funding lost due to the use of tax havens by Australian-based multinationals could pay for an estimated additional 1,400 primary school teachers, and nearly 600 nurses, a year.  In The Philippines, an estimated 1,700 new classrooms per year could be built.

"It doesn't have to be this way. Australia should show that it's tackling this issue by making the tax affairs of Australian-based multinationals public – not only for their operations in Australia, but for every country in which they operate.

"Our research relies on IMF data, which shows the flow of money from Australian-based multinationals.  Unfortunately, there is no way to find out which individual companies are dodging tax, as they're not required to publish their tax affairs on a country-by-country basis." 

Dr Szoke said this lack of public reporting enabled big companies to hide billions of dollars they should be paying in tax.

"Other countries, including the US, France and Canada, have made tax reporting public for high-risk sectors in big business, such as for mining companies and big banks; it's time Australia caught up," she said.

Dr Szoke said the report showed that Australia was a major part of this global problem that affected so many lives here and overseas.

"With inequality worsening around the world, making the fight against poverty even harder, companies must pay their fair share of taxes, so that the revenue can be used to improve people's lives, both here and for the world's poorest people," Dr Szoke said.

Oxfam is calling on all political parties to commit to:

·         Make tax transparent at home and abroad;
·         Curb irresponsible use of tax havens;
·         Make multinational ownership information public;
·         Support developing countries with tax infrastructure, and,
·         Support global action to end tax dodging.

Notes to editors:
Research Now conducted the online poll of a nationally representative sample of 1009 Australians, from 25-27 May.


© Australian Associated Press, 2016  

What Desmond Euen tells the world about himself & his expertise and what the NSW North Coast says about him


Desmond John Thomas Euen asks communities on the NSW North Coast, as well as local and state governments, to accept his stated credentials and expertise in relation to an unsolicited proposal for a Yamba super port and new freight rail network between inland New South Wales and the coast.

So what has Mr. Euen told the world about his business history?

This is Des Euen on Linked in, as accessed on 8 June 2016:


There are a number of claims in this summary written by Mr. Euen:

1. “National Representative for and on behalf Australia's Independent Owner Drivers a position I held until 1991”

It would appear that Des Euen may have been president of an unrecognised union which made the news briefly over twenty years ago.

The Sydney Morning Herald from Sydney, New South Wales · Page 3https://www.newspapers.com/newspage/122594753/

Mar 15, 1990 - Queensland president of the teamsters, Mr Des Euen....
The Teamsters Federation claims to have more than 3,000 members throughout the country. However it is not a recognised union….
A confrontation on the NSW-Queensland border crossings was expected last night as the Transport Workers Union warned that its truck drivers were likely to ignore picket lines set up by the rebel Teamsters Federation.

 2. “During this period I assisted in….the reinstatement of Section 92 (Free Trade between States)”

Oh dear, s92 of the Commonwealth of Australia Constitution Act was never removed and in need of reinstatement - it remains as it was on 9 July 1900:

92. Trade within the Commonwealth to be free
On the imposition of uniform duties of customs, trade, commerce, and intercourse among the States, whether by means of internal carriage or ocean navigation, shall be absolutely free.
But notwithstanding anything in this Constitution, goods imported before the imposition of uniform duties of customs into any State, or into any Colony which, whilst the goods remain therein, becomes a State, shall, on thence passing into another State within two years after the imposition of such duties, be liable to any duty chargeable on the importation of such goods into the Commonwealth, less any duty paid in respect of the goods on their importation.

There is no evidence that Euen was involved in any of the four matters before the Australian High Court between 1988 and 1991 which specifically addressed Section 92.

3. “In 1991, I founded Interlink Shipping Consultancy Pty Ltd”

The Australian Securities and Investment Commission (ASIC) has no online record of a company of that name registered in 1991 or of a similar registered business name. 

There is a record of ISC Pty Limited, registered in February 1993, based in Sydney and deregistered in March 2004. There is also an ISC Pty Ltd registered in November 2006 and currently based in Caboolture and Lutwyche QLD. However historical records show that Des Euen has never been a director, secretary of shareholder in either of these companies.

4. “In 1994, ISC Pty Ltd was merged with Australian Coastal Shipping Ltd

Australian Coastal Shipping Limited was registered on 10 May 1994 and, by 21 & 22 August 1997 there was a Notification Of Appointment Of Liquidator By The Court (505G) and a Court Order To Wind Up A Company And Appoint A Liquidator (560) recorded by ASIC. The company was finally deregistered on 4 November 2001.

The historical record for this company does not ever list Mr. Euen as either a director, secretary or shareholder.

What Des Euen fails to mention entirely:

Coast-Trans Pty Ltd, formerly Coast Cat Queensland Pty Ltd, registered on 30 April 2002,  Notification Of Appointment Of Liquidator By The Court (505G) recorded by ASIC on 8 November 2004 with this company finally deregistered on 18 December 2004.

Desmond Euen became the sole director, secretary and single shareholder in this $1 company on 30 April 2002 and, except for a two month period in 2002 when an additional director is recorded, remained in these roles until the company was deregistered.

The Courier-Mail,  28 November 2003, page 7:

…..Coast-Trans owner Des Euen said he had decided to name the 360- passenger catamaran Koopa II to "maintain tradition and history".
The Koopa II will arrive early next month from Indonesia and is expected to enter service on December 8, running from Brisbane to Redcliffe, Bribie Island and Mooloolaba.
The Brisbane-Mooloolaba return fare will be $50.
Mr Euen said the vessel would travel at 26 knots, reaching the Sunshine Coast terminus in 3 1/2 hours.
Next year his company would take delivery of a second vessel capable of carrying 450 people at 40 knots. It would be named Doomba II after another bay cruise vessel and also operate to the Sunshine Coast.
The vessels would cost more than $7 million.
Mr Euen said his company hoped to carry some of the 4500 people who commuted daily to Brisbane from the Sunshine Coast.

The Courier-Mail,  26 Dec 2003, page 19:

A NEW high-speed ferry service running between Brisbane, Redcliffe and Bribie Island faces an uncertain future after a rocky maiden voyage.
Refuelling problems meant about 20 passengers were left waiting at the Bongaree jetty at Bribie Island for more than two hours yesterday.
As well, Coast-Trans ferry operator Des Euen is locked in a row with Queensland Transport over access to the jetty.
An angry Mr Euen said the department withdrew permission for Coast-Trans to use the facility at the eleventh hour.
"I have been in discussions with Queensland Transport for more than a year, and no one said, until now, there was a problem," he said.
"I am absolutely astounded."
But a spokeswoman for Transport Minister Steve Bredhauer said Mr Euen was never granted approval to use the jetty.
"The first time he requested use of Bongaree jetty was 11.30am on Christmas Eve," she said.
"Bongaree jetty is managed by Caboolture Shire Council, who say it is not sure whether it is suitable for a commercial venture."
The spokeswoman said proper public consultation would need to be carried out before the facility could be used.
Mr Euen said he had no choice but to berth at the jetty yesterday, defying the department's orders.
"What else could I do, I had to pick up passengers," he said…..
Coast-Trans operations were due to start a fortnight ago, but hold-ups in importing a 40m, $7 million catamaran from Indonesia meant the first voyage was postponed until a chartered catamaran could be brought north from Sydney.
Mr Euen said the 19.58m vessel, which holds up to 220 people, would run daily from South Bank at Brisbane to Bribie Island, via Redcliffe.
An earlier plan to run from Brisbane to Mooloolaba has been shelved.

What the NSW North Coast says about Des Euen and his grand plan.........

The Daily Examiner, 6 June 2016:

The Clarence River is the setting for the towns of Iluka (left) and Yamba (right) contributed

RE: "No plans to expand local port" (Daily Examiner, May 31).
When I started to read this article I had to glance at the top of the page and check the date, just to make sure that it wasn't April 1.
What is it that supplies people like Mr Euen with the abundance of arrogance that is required to feel that they can push through a whacko idea such as that described for Yamba?
Do they - the Des Euens, Clive Palmers and CEOs of coal-seam gas companies - feel that they have some divine right to inflict their nightmare on the populace of locations which are virtually unspoilt, just because they have the financial capability to do so?
Do they wake up in the morning and think: 'Wow! I've got a brilliant idea of how to turn a beautiful part of the country into a steaming pile of industrial crap'?
I didn't move from a major city (two years ago) to paradise (Yamba) in the hope that, maybe within my lifetime I would see the harbour become a major port.
And I am quite sure that there wouldn't be one person living in this area, whether for the past two, 22 or 122 years, who wants to see this happen.
As an aside, it is interesting to see that Mr Euen compares the scale of his nightmare to that of the Snowy River Scheme.
Prior to my retirement I was engaged in work which put me in regular contact with senior personnel from Snowy Hydro and in conversations about the history and engineering of the scheme it became abundantly clear that such a project, if planned today, would never, ever get the required approvals to proceed.
It would be dead in the water before it even started.
Let's hope that Mr Euen's plans also get flushed down the toilet.
Bruce Kennewell, Yamba

Orarariverfella – Braunstone 6 June 2016:

So Mr Kennewell having moved to the area a whole two years ago you think that your personal little fantasy retirement ideal town frozen in time should over-ride the admittedly far fetched but perfectly feasible idea that many before have seriously looked into. Once again it seems self interest and small mindedness will allow the noisy few to stifle any logical and rigorous investigation of any proposal that has merit to drive economic development (oh the horror of that notion) of the Clarence region.
We are in a position today to demand of any large scale proposal that it meet and indeed exceed any environmental restraints and controls that a development on this scale should rightfully, morally and socially have to comply. It just needs a combined will to at the least think about something that's bigger than the few but can succeed and to some degree stem the flow of the young leaving the area giving those that grew up here a viable reason to actually live out their lives and prosper here.

yambaman, 6 June 2016:

What is even more interesting is the lunatic's given address, 5 Shellbach St, Ipswich - Google can't find it for me.
At least they can find his co-Director's address 23 Apple Gum Ct, Robins - pretty disappointing abode for an upwardly mobile businessman.
What a w@nker, while I wish him no personal ill-will, this equally aged but grey-haired NIMBY hopes he drops off the planet before some idiot in government actually takes him seriously!


John Hagger, 5 June 2016:

$50 buys a whole lot of Advertising in Casino.
Sometimes the pace of the needed changes seems painfully slow.
As a local resident doing their best to ensure Our Valley’s long-term survival, the glacial pace of change can be so incredibly frustrating that it is possible to overlook our achievements to date.
Sometimes support comes from the most unexpected of places.
Des Euen generously provided us with evidence of just how far we have already advanced at the Casino meeting with regard to Yamba Port.
As previously noted, the meeting was poorly attended and most of those present came out of concern or to voice their objections.
In the face of comments and questions from his detractors, Dinosaur Des replied with numerous unwanted and patronising references of ‘darling’ and ‘sweetheart’ aimed at local women.
So extreme was the archaic language and the mega claims of Yamba becoming the largest Port in Australia with matching infrastructure extending like a web across NSW and beyond that I was left wondering why.
Why would anyone so alienate their audience or so anger the People of the towns next door to the intended Port’s construction site?
My guess is that Des the truck driver is being used as a canary in the coalmine by whatever political and financing bodies are really in charge of this dog and pony show.
In exchange for the $50 required to book the 400-seat room at Casino’s RSM:
Des and his mates got to spread their message far and wide plus ticked the box marked Community Consultation.
Just in case any of the Puppet Masters ever get to read this:
Local People have made it clear.
We do Not want to be home to Australia’s largest Port.

Tom Porter, 3 June at 20:06
I think I will take a look into Dez Euen's past. I am getting a feeling he could be selling snake oil.
Leigh Barrington:
 Gawd, like days of our lives. Can't wait for the next episode  

Pamela Wickham, 2 June at 08:08:
 Des mentioned things should get a move on within or around 8 weeks eg He said he has invested a huge amount of money into this project and believes in creating jobs and if he does not succeed than he loses millions. 6 June 2016
Carly Woodstock Good. This tool can kiss his millions goodbye. How dare he....
Teresa Eggins Hopefully he loses im sure its not his money anyway

Mat Bell, 2 June at 13:20:
Why the f*uck was there a meeting about yambas future in casino????? [redacted word due to filters in use by some overseas readers]

Teresa Eggins:
 My thought exactly only reason I could think of is that a lot of yamba locals wouldnt know about it or wouldnt be able to attend

Thursday 9 June 2016

Turnbull Government will increase support for gas industry and coal seam gas exploration if re-elected on 2 July 2016


It has come to my attention that a number of people living on the NSW North Coast believe that the threat of coal seam gas mining in the Northern Rivers region has gone away because communities so successfully resisted Metgasco Limited’s commercial plans to create gasfields in our midst.

Unfortunately, although the immediate threat may have abated the longer-term threat remains all the same, as these excerpts from the 6 June 2016 address to an Australian Petroleum Production and Exploration Association (APPEA) conference by Minister for Resources, Energy and Northern Australia Josh Frydenberg clearly show:

I’d like to acknowledge my fellow speakers, APPEA Chairman, Bruce Lake, APPEA Director and Country Chair for Shell Australia, Andrew Smith, and the Honourable Dr Anthony Lynham MP.

I would also like to acknowledge APPEA more generally, and its CEO in particular, Dr Malcolm Roberts, for their constructive engagement and contribution to good policy that is in the national interest.

It’s great to join you for your annual conference, my first since being appointed Minister for Resources, Energy and Northern Australia.

Since that time I have always sought to:

·         highlight the incredible contribution you make to Australia’s economic performance;
·         be a passionate advocate for the work your members do to support jobs and grow the Australian economy;
·         celebrate the successes of the industry, including first gas at APLNG and Gladstone LNG on the East coast and at Gorgon on the West coast; and
·         champion the extraordinary innovation in the sector, from Shell’s Prelude FLNG facility to the autonomous underwater vehicles operating on the ocean floor at the Pluto project.

These early experiences have highlighted the importance of building on Australia’s strong international reputation as a reliable energy supplier and attractive place to invest, as well as the innovative and resilient nature of the people working in the sector….

Importantly, our LNG export capacity will continue to ramp up through several new projects which have recently commenced production and further projects which are under construction and due to come online over the next few years.

These projects together total around $200 billion in capital investment.

They include three Coal Seam Gas based LNG projects in Queensland (Queensland Curtis LNG, Gladstone LNG and Australia-Pacific LNG) which commenced production over 2015 and early 2016….

The continued sustainable development of the nation’s mineral and energy resources is a priority for the Turnbull Government.

Our policies will:

·         cut red tape, including streamlining environmental approvals processes;
·         drive jobs and growth by cutting taxes;
·         create new market opportunities;
·         de-risk exploration;
·         support innovation; and
·         increase community engagement and understanding.

We stand by our record since being elected.

The carbon tax is gone; so is the mining tax.

In just two years, we have cut more than $4 billion per annum in red tape.
The Coalition remains committed to one-stop-shops for onshore environmental assessments and approvals, having achieved it for offshore petroleum activities in Commonwealth waters…..

At the same time as we create new export opportunities, we are very focused on attracting greater investment by de-risking exploration.

We understand that exploration is a necessity for the industry – and that’s why we are committed to making Australia as competitive as possible.

As announced in the Budget, the Government will provide $100 million to fund the Exploring for the Future programme to be delivered through Geoscience Australia over the next four years.

Exploring for the Future will produce a resources prospectus covering targeted areas of northern Australia and parts of South Australia.

This programme will deliver new pre-competitive geoscience to assist industry in better targeting onshore areas likely to contain the next major oil, gas and mineral deposits…..

Firstly, our Growth Centre Initiatives.

National Energy Resources Australia (NERA) was launched earlier this year, and is one of six industry-led Growth Centres.

The Growth Centres are tasked with driving collaboration, innovation, and international competitiveness in targeted areas of competitive strength and strategic priority in the Australian economy.

The sector focus for NERA is oil, gas, coal and uranium – Australia-wide – and covering the full breadth of industry activities from exploration and development, construction, drilling, production and operations, to decommissioning…..

The Coalition has committed $15.4 million over four years to NERA with an additional $17.2 million for Project Funds to be matched by industry on projects with sector impact…..

APPEA plays an important role in enhancing the transparency around industry activities. At the last COAG Energy Council, I proposed and the Council agreed that APPEA would produce an annual unconventional gas activities report to provide a consistent, national information source on activities across all jurisdictions.

Among other things, this report will include, where available, the number of wells drilled, the number of land access agreements in force, the extent and type of community engagement, and the contribution unconventional gas activities make to government revenues.

But we must also acknowledge that there are members of the community that have raised concerns about the processes involved in developing gas from unconventional sources.

These concerns must be discussed and addressed if we are to successfully develop the new gas supplies necessary to support Australian homes, businesses and the broader economy.

The Coalition has been consistent in its support for the responsible development of unconventional gas strongly underpinned by the best available science……

To further our commitment to better inform the community of the scientific evidence in this area, today I announce that the Turnbull Government will make $4 million available for the CSIRO to undertake further research and to engage with the community using the Gas Industry Social and Environmental Research Alliance, or GISERA model….

State-specific research programs will be established in partnership with State Governments and industry that wish to work with the Turnbull Government to address community questions.

In particular, GISERA will address community concerns by:
conducting new research in key areas such as surface and groundwater, agricultural land management, biodiversity and socioeconomic impacts and opportunities;

·         establishing a Regional Advisory Committee;
·         implementing a communications program using trusted science-based information;
·         generating advice for governments and industry;
·         improving community understanding of the benefits and impacts of onshore gas development; and
·         strengthening the linkages to key stakeholder groups in gas development regions.

We know that there is no substitute for community engagement and robust science if we are to bring more gas to the market.

I look forward to working with my State and Territory counterparts, and the companies operating in each state, to expand GISERA wherever there are communities that would benefit from scientific research into unconventional gas activities…..

It is clear that your industry is absolutely critical to the continued strength of the Australian economy.

As we now continue the transition to the production phase of the current resources boom, and look to take advantage of future opportunities, we must not compromise all the hard work and investment that has got us to this point.

Sadly, under pressure from the Greens, the Labor party has managed to destroy the vital bipartisanship which existed for over a decade under Ian MacFarlane, Gary Gray and Martin Ferguson in this area of national economic importance.


Resources Minister Josh Frydenberg has acknowledged as recently as last month that the gas market needs to be reformed but, on the back of the ACCC report, has suggested the answer lies in pipeline regulation and moving away from blanket moratoriums on "certain" gas developments – meaning bans on CSG developments – which should instead be managed case by case. 


The big environmental issue of the last NSW election was coal seam gas. And while the gas industry and its lobbyists keep waiting for the controversy to go away, gas looks set to play a major role in the federal election too.

To recap, the NSW government's support of CSG hit the Nationals hard at the state election. They lost one formerly safe seat and lost another. The Libs took notice – CSG info sessions were then held in Northern Sydney Liberal branches.

The government killed off some gas projects, hoping to put gas on the – ahem – back burner, but recent events continue to turn up the heat in NSW and beyond…..

It's a point worth thinking about. No matter how much gas we produce, our prices are now linked to the Asian market.

The gas industry knew this, of course. In fact, companies like Santos boasted to investors that opening up gas exports would mean they could charge Australian gas users global prices.

The industry said nothing, however, to governments. The Economic Impact Assessments submitted to state planning agencies barely mentioned the impact on Australian gas prices.

Australian manufacturers have been hard hit. They now compete with foreign buyers of gas and can pay double or triple previous contract prices. The ACCC found that for a period no gas suppliers would make gas available to Australian manufacturers. 

Deloitte Access Economics found that the increase in gas prices as a result of CSG exports could cost manufacturers $118 billion by 2021, most of which will go to the gas companies in a $81 billion windfall.

The salt in the wound for manufacturers is their lobbyists let this happen. After insisting CSG was an "exciting opportunity", last year Innes Willox, head of the Australian Industry Group admitted that they had "sleepwalked into gas exports".

With so much interest in gas issues and voters clearly ready to punish politicians who get gas wrong, there is plenty at stake in the coming election.

The Greens position is simple – they oppose all CSG and most other gas developments.

The Coalition is in a difficult spot. Pro-industry Liberals are unlikely to sign up for anything the gas lobby doesn't want, but it isn't their voters that are likely to care.

The Nationals are still smarting from their electoral losses in NSW. They're the ones that will get burned if Greens and Labor can make local angst on gas count in federal electorates.

Labor senses this, pledging to extend the "water trigger", which makes more gas projects likely to need federal environmental approval. The gas industry responded with immediate condemnation.

Australian Federal Election 2016: are Baird's forced council amalgamations hurting Team Turnbull's chances in NSW?


About 27% of the NSW population lives in one of the nineteen new councils created yesterday. Another 21% lives in the nine proposed councils which will be created once the current court action is resolved. If Newcastle is also merged and its council sacked, that will be a majority of the NSW population living in an area with no elected local representation. [The Tally Room, 13 May 2016]

Google Images March 2016

NSW Premier Mike Baird has been careful over the years to position himself as being in sympathy with the aims and major policies of the Abbott-Turnbull Government and, in its turn this federal government has supported his slashing of the number of local government areas which will see an est. 48 per cent of the state’s population being without elected councillors for at least twelve months.

That's up to 3.66 million individuals living in households who may be more than a little cranky with the Lib-Nats for what has happened to their local council and approximately another 3.97 million people living in local government areas that are in the firing line the next time Premier Baird decides to whittle away at the most immediate tier of democracy in Australia.

Coalition MPs hoping to retain their seats come 2 July must be hoping that none of them read the newspaper over breakfast (or click onto social media) between now and then.

How the NSW council amalgamation issue played out in mainstream media thus far......

The Sydney Morning Herald, 18 March 2016:

At Liberal party functions in his seat of Wentworth in Sydney's east, Malcolm Turnbull is fond of introducing his staff member, Sally Betts as the most powerful person in Sydney's east. It usually gets a chuckle, particularly since he became Prime Minister.

Ms Betts is the grandmotherly figure who works two days a week in his electorate office while also serving as Waverley Council's mayor……

If Betts had not got on board with the Baird government's amalgamations push, the state government would have faced a solid wall of opposition from Liberal councils. Instead Betts and her Liberal counterpart in Randwick offered the first chink in council resistance, giving the state government cause to claim the councils were divided on the issue……
Daily Telegraph, 9 May 2016:

Tony Abbott has thrown his support behind the formation of one northern beaches council under Premier Mike Baird’s amalgamation reforms.
“I can see the arguments both ways. I would probably lean towards a whole of peninsula council if we are going down the amalgamation path,” he said.
“It’s a question of balancing out the local attachment with the need for efficient service delivery.”….

However once Malcolm Turnbull called the double dissolution election for 2 July this year matters became more complicated and federal influence on the Baird Government more obvious.

The Australian


The state government initially put forward 35 amalgamations in what would have been the biggest reform of local government in NSW since 1948.

But it is likely that cabinet will drop some of the proposals, with suggestions that the process has been influenced by political considerations, including opposition from local MPs and concerns about whether they will affect the chances of federal MPs.

After state cabinet considers the mergers, a special partyroom meeting will be held to endorse them…..


But the state government has placed a potential bomb under the Coalition’s campaign by proceeding with mergers in a number of marginal seats, including the bellwether Eden-Monaro, and ­Dobell and Robertson on the NSW Central Coast.

In Eden-Monaro, held by the Liberals’ Peter Hendy on a narrow margin, the government has, among other mergers, approved the joining of the rural Palerang council with the Queanbeyan town council.

Former Palerang mayor Peter Harrison says his former council is a poor fit with Queanbeyan given the different demography. He says locals fear their rates will be consumed by Queanbeyan and that there will be less money for maintenance of local roads.

“Palerang is quite unique. The majority of people live in rural residential areas. It does not have urban centres,” Mr Harrison said.

The Baird government dumped a proposal to merge the Kiama and Shoalhaven councils, affecting the marginal seat of Gilmore, held by the Liberals’ Ann Sudmalis, and another affecting the seat of Macquarie, held by the Liberals’ Louise Markus, after a government-appointed delegate recommended against it.

It ignored its own proposal to merge Tamworth and Walcha councils in New England, where Mr Joyce is battling former independent MP Tony Windsor.

Deputy Premier Troy Grant said he had two calls from Mr Joyce about the amalgamations, but denied he had an influence.

Delegate Amanda Chadwick recommended Walcha and Tamworth councils merge, and the proposal was supported by the Boundaries Commission.

Mr Baird denied that the decision not to proceed with some of the mergers was driven by political considerations, saying it was purely a matter of what was in the interest of ratepayers.

The mergers will reduce the number of councils in NSW by 37. The number of councils in Sydney is to be slashed from 43 to 25. Yesterday the government sacked all councillors in merged councils, appointing ­administrators in their place, and delayed local elections in ­affected areas until September next year.

Mr Baird said he had “absolute confidence” the mergers would result in better outcomes for ratepayers.

But the Baird government limited the financial benefits of the mergers by demanding the new councils not sack any workers, except executives. Employees in towns smaller than 5000 are permanently protected…..

News.com.au, 17 May 2016:

A few months ago people were talking up Mike Baird’s personal popularity, saying it could soften any swing towards Labor in NSW including in the eight marginal seats of Barton, Eden-Monaro, Dobell, Reid, Banks, Page, Gilmore and Lindsay.

But that was until the NSW government announced plans on Thursday to sack councils across the state and create 19 new ones……

Then the ugly underbelly of Mike Baird’s governance style was exposed for all to see.

The Sydney Morning Herald


In a potentially explosive development for the Baird government, the Land and Environment Court has ordered it to provide documents about the role KPMG played in implementing the council amalgamation agenda.

Strathfield Council and others are alleging a serious misrepresentation by the Baird government after discovering that KPMG has been involved in devising the merger proposals as early as July 2015 – before the government announced it was proceeding with forced amalgamations – yet it was deemed the independent arbiter of the financial benefits of the mergers.

A document seen by The Sydney Morning Herald entitled "Options Analysis: Local Reform" and marked cabinet-in-confidence was dated July 8, 2015.

"OLG [Office of Local Government] has commissioned KPMG to support development of a robust evidence base to support the NSW government's Fit for the Future agenda," the document says.

This was well before the government announced the results of the Fit for the Future review by the Independent Pricing and Regulatory Tribunal, which assessed the health of councils to either stand alone or merge. It was also before the government announced its plans to force mergers.

In a press release issued on the day the government announced its preferred mergers in January 2016, Premier Mike Baird and the Minister for Local Government Paul Toole described the role of KPMG, which calculated the savings of each merger, as "independent"……

The state government has defended the independence of the consulting firm whose sums were the basis for its controversial push to slash Sydney councils.

Accounting and consulting giant KPMG, whose figures have been used to justify the government's controversial merger policies, donated about $100,000 to the NSW Liberal Party shortly before the elections that brought the Coalition to power in 2011.

The firm was also paid about $870,000 to audit Liberal Party accounts in 2015…..

"How can you claim KPMG's report on your forced council mergers is independent," asked the opposition spokesman on Planning and Infrastructure, Michael Daley, in question time in the NSW Parliament on Thursday.
The attack comes a day after the Land and Environment Court demanded the government produce documents relating to KPMG's modelling, which has been central to making the case for the government's council merger policies.
That resulted from a legal challenge to the merger of Strathfield Council and two others in the inner west, which revealed KPMG had been working on merger proposals before the government announced it was proceeding with the policy.
"The lack of independence of KPMG has always been a central part of our case," said the lawyer for Strathfield Council, Tim Robertson.