North-west Tasmanian councils cool about merger talks

Councils in Tasmania's north-west are willing to investigate the merits of merging, but doubt it will benefit ratepayers.

Local Government Minister Peter Gutwein continued a round of discussions on voluntary amalgamations with mayors and councillors in Ulverstone this morning.

He is meeting the rest of the state's 29 councils in Launceston this afternoon.

Mr Gutwein reassured councils there would be no forced amalgamations, but offered up to $50,000 for feasibility studies into voluntary amalgamations.

Circular Head Mayor Daryl Quilliam said the issue was worth investigating and councils would be foolish not to take up the offer.

"We all agree that we need to look at what's best for ratepayers and the community and we would need to be convinced that it is going to be in the best interest if there was any amalgamations," Cr Quilliam said.

"I think most of us don't want to be amalgamated."

He said the study would also consider the cost savings of sharing more services, rather than amalgamating.

Mr Gutwein said a third of the state's 29 councils had expressed interest in amalgamating.

The state's two largest councils, Hobart and Launceston, are strongly pushing to extend their boundaries, and have argued it would provide rates relief and more efficient services.

But most other southern councils which attended a meeting with the Minister yesterday were lukewarm on the idea.

Council mergers have been on the agenda in Tasmania for many years but successive governments have shied away from pursuing amalgamations.