Cootamundra-Gundagai Regional Council has faith but 'no blueprint' yet for demerger, mayor says

NSW Minister for Local Government Wendy Tuckerman on Wednesday evening announced she had approved the demerger of Cootamundra-Gundagai Regional Council.

Mrs Tuckerman's announcement was a major milestone in a five-year battle by ratepayer groups to undo a forced council amalgamation from 2016.

"There are demerger models from Queensland and Victoria but that doesn't mean the minister has to follow any of those," Cr Sheahan said.

Cr Sheahan said it would be good for the minister to develop her own model for NSW, given that other amalgamated councils could follow Cootamundra-Gundagai's lead.

"There's no blueprint for this, it's something we're prepared to work with [Cootamundra MP] Steph Cooke and the minister to try and design a process that would work well," he said.

The council last year commissioned a business case for the demerger that estimated the cost at $1.75 million with a $451,000 annual benefit to ratepayers after eight years.

Cr Sheahan said those figures were still relevant and the demerger would be easier due to a lot of the previous structures of both councils still being in place.

Ms Tuckerman's spokesperson said the minister would "make further announcements regarding timeframes and organisational structure of the existing council and the two new councils in due course".

"It is anticipated council elections for the de-amalgamated shires will be held in line with the local government general elections in September 2024," the spokesperson said.

When asked if returning Snowy Valleys Council to separate Tumut and Tumbarumba shires could now move forward, the spokesperson said "currently there is no demerger proposal from any council submitted to the Boundaries Commission".

Wagga MP Joe McGirr said Snowy Valleys mayor Ian Chaffey had said the council would now proceed with a demerger business case and he personally supported the move.

"Snowy Valleys now has a pathway and their council can proceed and I think that's a great outcome," Dr McGirr said.

Gundagai Council in Exile group chairman Dr Paul Mara said he wanted the demerger as soon as possible.

"It should be done transparently and with local people involved, unlike the original merger proposal," he said.

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Ms Cooke said she was "delighted" with the demerger decision.

"I have fought incredibly hard to secure this outcome in response to the collective and sustained feedback from constituents on the issue," she said.

"I am grateful to the individuals and organisations who contributed to the Boundaries Commission process, and I thank those who trusted my judgement in pursuing this course of action."

Labor spokesperson for local government Greg Warren said he welcomed the Coalition's "backflip" on the merger, which he described as a debacle from day one.

"It's now critical the Minister for Local Government releases details about the demerger process and any subsequent timelines as a matter of urgency." Mr Warren said.

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