Hired Guns: Local Government Mergers in New South Wales and the KPMG Modelling Report

© 2017 CPA Australia Across the developed world, including Australia, public policymaking now rests heavily on commissioned reports generated by for-profit consultants, contrasting starkly with the earlier customary reliance on the civil service to provide informed policy advice to political decision makers. Dependence on commercial consultants is problematic, especially given the moral hazards involved in ‘hired guns’ providing support for policy ‘solutions’ desired by their political paymasters. This paper provides a vivid illustration of some of the dangers flowing from the use of consultants by examining the methodology employed by KPMG in its empirical analysis of the pecuniary consequences of proposed municipal mergers as part of the New South Wales’ (NSW) Government's Fit for the Future local government reform program. We show that the KPMG (2016) modelling methodology is awash with errors which render its conclusions on the financial viability of the NSW merger proposals fatally flawed

Can't Get No Satisfaction? The Association Between Community Satisfaction and Population Size for Victoria

© 2015 Institute of Public Administration Australia Traditionally, the problem of determining the optimal size in local government has been empirically assessed by estimating the relationship between population size and the costs of services (usually measured in terms of per capita expenditure). These studies, however, have proved largely inconclusive. In comparison, an empirical analysis based on the relationship between the size of government and community satisfaction offers a potentially fruitful contribution to the debate regarding the optimal size of local government. However, to date, few studies have followed this approach. We therefore contribute to this literature by exploring the relationship between population size and community satisfaction for Victorian councils. Our findings provide evidence of an inverted ‘U-shaped’ relationship, which predicts low community satisfaction at very large and very small population sizes