The annual Local Government NSW conference took place in Coffs Harbour last week.

Kiama Mayor Brian Petschler, deputy mayor Warren Steel and councillor Neil Reilly attended the two-day conference. 

Cr Petschler said key issues discussed at the conference were local government sustainability and Fit for the Future. 

The state government announced the $1 billion Fit For the Future package in September. 

The package features a pool of $258 million to assist councils that decide to merge, including $153 million for Sydney councils and $105 million for regional councils.

All councils been have told to demonstrate their financial viability.

The government said amalgamation would make NSW’s 152 councils more efficient.

Previously, in its final report to the state government the Independent Local Government Review Panel maintained its stance from its Future Directions paper, saying Kiama Council could stand alone. 

The government’s proposal for “joint organisations”, announced in Fit for the Future, includes 15 proposed for regional NSW, such as one for the Illawarra which will represent Wollongong, Shellharbour, Kiama and Shoalhaven councils.

Joint organisations would undertake a range of “high-level functions” on behalf of member councils.

The Illawarra joint organisation will eventually replace the Southern Councils Group.

Cr Petschler previously said the respective mayors of Kiama, Shellharbour, Wollongong and Shoalhaven City councils had already taken the initiative in meeting with Minister for the Illawarra John Ajaka and NSW Minister for Local Government Paul Toole.

Cr Petschler said the four councils had all now agreed that the identified region be put forward as one of the areas to be treated as a joint organisation pilot area. 

He said the government planned to trial four areas. 

“I understand from what the Minister said at the conference that 11 regions in NSW have put their name forward,” he said.

Meanwhile, Shoalhaven City Council will be tempted by a $13.5 million state government incentive to seek a merger with neighbouring Kiama Council, according to Cr Andrew Guile.

Cr Guile told Fairfax Media that Shoalhaven would be driven to a merger because of its “poor financial position outlined in the recent sustainability report”.

“Hearing the Minister for Local Government Paul Toole talk about the benefits of reform at the NSW Local Government Conference leaves little uncertainty for areas like the Shoalhaven.” 

Cr Petschler said it had been agreed at the mayoral level within the region to proceed with the joint regional organisation proposal.

“We’ve had a policy decision for a long time not to look at any boundary alterations,” he said.

“No one from Shoalhaven has approached us about it… We all felt because we’d been left alone we thought we were an ideal group to put forward our name as a joint regional organisation.

“In my view, a merger in any direction right now would not be necessary.

“We’re financially secure… We’re at the sustainable level, we’ve got very low debt; we’re going quite well.”