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Abstract
This article draws from a major research project examining the impact of various forms of municipal consolidation in Australia and New Zealand. Its wide-ranging research involved studies of 15 cases of different forms of consolidation, including amalgamation, together with a series of interviews with senior practitioners from the local government sector. Data revealed little evidence of consistent economies of scale from consolidation, however both case studies and interviews indicated that consolidation generated economies of scope and what may be termed ‘strategic capacity’. While it was not possible to disaggregate the data for particular sizes of local authority, enhancement of strategic capacity was more obvious through processes of consolidation in larger ones and less so in smaller, more remote ones.
Acknowledgements
This article was developed from a large research project conducted under the auspices of the Australian Centre of Excellence for Local Government (ACELG).
Notes
1. The term ‘council’ is used in this article for municipalities, local authorities and local governments.
2. For a recent overview of Australian local government see Sansom (Citation2009).
3. One implication of this is that proposals for local government restructuring are exclusively a matter for state/territory governments to initiate and/or approve.
4. In the case of sweeping changes made in the state of Victoria, for example, it was claimed that savings of about 20% would be achieved (Moore Citation1996, p. 65).
5. Unlike many of their international counterparts Australian local governments do not carry responsibility for functions such as social and welfare services, education, health or policing.
6. The authors wish to acknowledge the significant work of Melissa Gibbs, Alex Gooding and Stefanie Pillora in conducting interviews and writing most of the case studies.
7. A full literature review for this research project can be found at ACELG (2011, Vols 1 and 2).
8. Each state and the Northern Territory have their own local government Acts.
9. For example, each Melbourne municipality experiences a 35% turnover in population every five years (Moore Citation1996, p. 71).