A decade on from the amalgamation of Pittwater, Warringah and Manly councils, PL looks at what worked, what didn’t and whether it would be wise to turn back the clock.
When two-thirds of Sydney councils were deemed unfit for the future in 2016, then Premier Mike Baird said that amalgamations were the ‘final opportunity to do the right thing.’ He went on to create 19 mega councils across the state, including Northern Beaches Council (NBC) from Manly, Pittwater and Warringah. As some in Pittwater continue to push for a demerger, was it the right thing after all?
A good place to start in examining council’s performance is with the first NBC mayor, Michael Regan. “It absolutely achieved what was promised,” says the now Independent Wakehurst MP.
“It has taken the pressure off rates and financials of Manly and Pittwater in particular. Close to $100 million of debt between the two has been repaid, while infrastructure has been rebuilt, such as the dilapidated Mona Vale Surf Club and Church Point car park. A new waste contract also saved hundreds per household.” Mr Regan says that NBC also achieved $29 million per annum in savings post-merger and increased service levels, yet others argued that savings resulted from NBC ‘taking money it had borrowed to repay money it had borrowed.
Figures provided by council show that employee costs in 2014/5 before the merger were $118 million – equivalent now to $160 million.
Independent Narrabeen Ward councillor Vincent De Luca says over half of council’s budget is now spent on salaries, with rates increased every year since the merger. Cr De Luca says amalgamation has been an ‘absolute failure.’ “Council is refusing to make savings and reduce its expenditure,” Cr De Luca tells PL. It still has bloated bureaucracy and nearly half the budget is spent on salaries, with over $170 million expended this last financial year alone. Just $105 million was allocated to community capital works and infrastructure.
“Instead of tightening its belt, council has increased rates, bureaucracy and salaries and failed to deliver on expectations,” he adds.
But NBC Mayor, Sue Heins, tells PL that while bringing three diverse councils together was a significant challenge, ‘10 years on we’re seeing the benefits of a stronger, unified organisation.
“We’ve achieved millions of dollars in efficiency savings by merging back-office functions, and reinvested those savings to pay down debt, maintain or replace run down community infrastructure, and help ensure the Beaches remains a place we all love to live and work.”
Last July, council implemented a 25.2% rate increase, including a special variation, which takes effect over two years. Council said ‘impacts of rising inflation, loss of income from the pandemic and the massive cost shifting from other tiers of government’ are behind the rises.
The Protect Pittwater demerger lobby group says that a ‘lean and local council’ is essential for residents
“Without a special variation, council would need to cut services the community reasonably expects us to deliver,” it said. “NBC is the fifth largest in NSW, with responsibility for $7 billion in assets for almost 270,000 residents – the breadth of our service delivery is significant. These services require staff to deliver them. A reduction in staff equates to a reduction in services. Our employee costs and structure are consistent with industry benchmarks and commensurate with other local government organisations.”
Council said in the 2024/25 annual report, $166.9 million was spent on employee costs.
Pittwater residents have long held concerns over the loss of local representation, accountability and community focus. De-amalgamation lobby group Protect Pittwater is calling for a return to a ‘lean and local council,’ telling PL: “Residents now have fewer councillors per capita and less influence over decisions affecting their community. Local issues are overlooked such as road maintenance and village centres, with community infrastructure competing with the needs of a much larger NB area, leaving Pittwater’s priorities inadequately addressed.
NBC Mayor Sue Heins says that the special variation will allow council to continue supporting the local community.
“Despite promises that amalgamation would generate millions in savings, rates have continued to rise while many residents feel service levels have not improved.
“Many in Pittwater feel that their community has lost its voice and that decisions affecting Pittwater are being made without local input.”
The group says that it has collected 6,000 signatures and is continuing via a new e-petition. Minster Hoenig has confirmed that he will refer the matter to the Boundaries Commission for proper assessment pending sufficient community support.
The new section of the Local Government Act – De-amalgamations has given councils and communities powers by providing a legal pathway to demerge, considering finances, strategic planning and service delivery. It requires majority community support, outlines government contributions to demerger costs, and removes the 10-year limit for councils to enact demerger proceedings.
“Pittwater would be economically stronger as an independent council,” says Protect Pittwater. “Pittwater’s environmental needs are different – our vulnerabilities are unique and our expectations for stewardship are higher because the landscape demands it.
In 2024, Pittwater Greens councillor Miranda Korzy put a ‘de-amalgamation motion’ forward at council, to enable a vote by residents on the issue, which was defeated. She tells PL that a demerger has ‘always been about’ protecting Pittwater’s unique environment.
“A smaller council should be more in touch with the community; however, the larger council has more influence with State Government at a time when it is removing more of the planning system from local control,” says Cr Korzy.
“Before the special rate variation last year, we had over 1,100 infrastructure assets that were decades old and in poor condition. With the extra income coming through, we’re upgrading. A smaller council may need fewer middle managers, yet a reduction in rates would mean a cut to services.”
“Merger absolutely achieved what was promised.”
Former NBC mayor, Michael Regan
Demerger costs are estimated at $43 million, with an annual operational chaser of $25 million – likely to see cash-strapped councils careening towards a financial cliff. In Manly, pre-merger debts of $66 million and improved efficiency have left little mood for demerging.
Mr Regan says a demerger ‘should not even be an option.’ “People put on rose-tinted glasses, but (the old Pittwater Council) couldn’t even afford to build a path around Narrabeen Lagoon,” said Mr Regan. “If people knew how much worse off their rates would be and how quickly their assets would return to poor, nobody would support it. It would be a costly disaster and do nothing for ratepayers.”
Mayor Heins adds that while amalgamation came with challenges, ‘it has helped create a stronger organisation that is better placed to manage debt, attract funding, deliver large-scale projects and maintain the services our community relies on.
“As we look ahead, we remain focused on caring for our environment, maintaining our assets and ensuring the Northern Beaches continues to be a great place to live, work and visit.”
Additional reporting by Michelle Giglio
