On Tuesday, the Cootamundra-Gundagai Regional Council (CGRC) Demerger Transition Committee met for the second time.
Several topics were discussed ahead of the meeting.
A change of meeting times to streamline the process (rather than waiting a month for Council to consider the decisions) was discussed, as was the use of Council software after the demerger and the establishment of a Demerger Transition Dispute Committee.
In 2016, the (then) NSW Coalition Government implemented a controversial program of forced council amalgamations, aimed at creating larger, more efficient Local Governments with better economies of scale. Under this policy, the Cootamundra Shire and Gundagai Shire Councils were abolished, and the new Cootamundra-Gundagai Regional Council was formed.
From the outset, the merger was deeply unpopular in both communities. For years, the community’s calls were largely ignored, but the political landscape gradually shifted. By October 2023, the new NSW Labor Government gave the green light for the demerger.
To manage this process, a Councillor Transition Committee was established.
Key areas of focus include:
Finances and Assets – Dividing assets, liabilities, and funding streams fairly between the two new councils.
Staffing – Creating two separate organisational structures and determining staff allocations.
Governance and Planning – Developing two complete suites of Integrated Planning and Reporting (IPR) documents, new Governance arrangements, and policies.
Infrastructure and Technology – Splitting technology systems, data, and physical infrastructure like depots and plant equipment.
Legal Matters – Resolving incumbent legal matters and planning and environmental issues.
This work has also helped clarify the timeline. While a formal proclamation date is yet to be set, current planning assumes the new Cootamundra Shire Council and Gundagai Shire Council will commence operations on 1 July, 2027. To meet this ambitious goal, a substantial portion of the complex organisational work must be completed by December 2026.
The demerger of Cootamundra-Gundagai is more than just a local issue; it has become a significant precedent in NSW as the first council to split under the new de-amalgamation legislation. It is being closely watched by other regions (such as the Snowy Valley Council, which is also exploring a demerger).
– Jack Murray
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