A new report proposes a major merger of Tasmanian councils.

The KPMG report says merging four municipalities into a super council in the south-east could save ratepayers more than $7 million a year.

The report outlines four merger options: 

  1. Clarence City, Sorell, Tasman and the Glamorgan-Spring Bay councils
  2. Clarence City, Sorell and Tasman councils
  3. Sorell and Tasman councils
  4. Sorell, Glamorgan-Spring Bay and Tasman councils

It said amalgamating all four councils would bring the greatest savings for ratepayers, while there was merit to other three options as well.

The authorities say merging the councils could save $7.6 million per annum in back of house and contract efficiencies, but that the transition would cost about $6.3 million.

The plans would reduce the number of councillors from 36 to 15 during the transition, and then down to 12 councillors in the longer term.

The report says redundancies or redeployment would have to be offered to staff doing duplicate roles after a merger, but says there would be no changes to customer-facing staff and council shopfronts would remain in each area.

Local Government Minister Peter Gutwein says it is a compelling argument.

“The report very clearly indicates that there are options that would be in the best interests of ratepayers to proceed with,” Mr Gutwein said.

“The full amalgamation option offers the highest level of savings, but these are matters to be considered by the individual councils.

“By the end of the year I would hope that all councils are in a position where they could make a decision as to whether or not we take the next step, which would be to have a conversation fully with their communities.”

The mayors of some of the potentially-affected towns have responded to the report.

“I think the rural councils will continue to struggle in the years to come. This is an opportunity to have a look at the benefits out of KPMG's report and we've got to look at those long term,” said Michael Kent, Glamorgan Spring-Bay mayor.

Doug Chipman, mayor of Clarence City said; “At this stage it's premature to say exactly where we ought to be going. What we need now is a full comprehensive briefing to each council ... so we understand the implications for our communities.”

“I think most people in the community are conscious that we need council reform in the state and this will provide a lot of data where they will be able to analyse and actually see some of the benefits or problems associated with those reforms,” said Sorell mayor Kerry Vincent.

“The staff losses are a huge concern and we will be ... hoping that that is not too big an issue for us,” said Tasman mayor Roseanne Heyward.