One of the drivers of the push to amalgamate councils in NSW is the NSW governments need to streamline planning approvals to allow development to cope with the 1.3 million people coming to Sydney in the next 20 years.
New planning legislations has passed the Lower House of the NSW Parliament, been amended in the Upper House and is now back in the Ministers hands and should return to Parliament in early 2014.
The Daily Telegraph recently quoted Premier O'Farrell on talkback radio.
As the government got ready yesterday to release the disappointing economic news, Premier Barry O'Farrell announced he would not be amalgamating any of the state's 152 councils despite a two-year review into the process.
Asked by a talkback radio caller on 2UE yesterday why the government would not amalgamate councils, rather than stick with a structure set up 100 years ago, Mr O'Farrell said the government had no intention of forcing any councils to merge.
"I'd argue the most important thing to reform local government is to reform the planning system," the Premier said.
"We believe local councils, just like federal government are an important part of the governance of this state and the best way to improve local govt is to improve the legislation that governs local government and that is the Planning Act."
You can almost hear the sighs of relief at the Mosman Council Chambers, muted by the prospect of strengthened government planning powers. Has the threat of council amalgamations been a diversionary tactic to reduce council planning powers?