SYDNEY would be governed by 15 super councils under a controversial new vision for local government in NSW.
Draft proposals from the local government review panel released today would see councils across the city given financial incentives to encourage voluntary amalgamations.
The sweeping restructure includes a vision for a "global" Sydney, which would see an expanded City of Sydney take in the entire eastern suburbs as far south as Botany.
Parramatta and Liverpool would also expand to become regional cities with wider boundaries and more resources.
The panel's chair Professor Graham Sansom said the recommendations included some "tidying up" in the inner west, north shore, northern beaches and southern Sydney.
This would see Hornsby and Ku-ring-gai councils merge, while Manly, Warringah and Pittwater would also amalgamate.
Willoughby, Lane Cove, Hunters Hill, North Sydney and Mosman would also merge.
Professor Sansom said the bleak financial assessment of the state's 152 councils, released by the NSW Treasury Corporation last week, was a wake-up call for the sector.
"It's time for a reality check, for fresh thinking and for new ideas," Prof Sansom said.
"If changes are not made, we believe the quality and relevance of local government in NSW will inevitably decline and the state will be the poorer for it.
"We emphasise that there is no pot of gold in Macquarie St or Canberra to fix these problems. Tough decisions are going to have to be made on rates and expenditure."
Councils will be given a range of incentives - including some relief from rate-pegging - if they merge voluntarily.
The panel will consult on the changes before submitting its final report to the State Government later this year.
Local Government Minister Don Page today reaffirmed the government's pre-election commitment of no forced amalgamations.
"I urge all concerned to contribute as this process enters its final stage," Mr Page said.
Prof Sansom said the panel was aware of the government's policy.
"It is entirely a matter now for the government and the local government sector ... to talk that through and see if there is any scope for a shift in policy," he said.
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