Speaking at a meeting of the New England Strategic Alliance (NESAC) in Bundarra this week, he said the Commonwealth was squeezing the states in the same way the states put pressure on local government.

“A century ago the Feds took 13 per cent of national revenue, now it’s 83 per cent,” he said.

“The three tier system is out of balance with the top tier taking more of the tax and at the same time cost shifting to the states which in their turn cost shift to the councils.

“It’s an untenable and unsustainable situation.”

Mr Torbay told the NESAC meeting that rate pegging in NSW should be abolished and that local councils should learn to collaborate effectively to become more sustainable.

“Shires Association president Bruce Miller raised the alert again this week suggesting a third of NSW Councils were unviable and as a result would be unable to supply essential services,” he said.

“This opens the door to fresh speculation on forced amalgamations and the reason that could occur is because of the number of councils that are unsustainable.”

He urged the NESAC councils, Armidale Dumaresq, Guyra and Uralla to settle any differences and create a more workable structure, including management structures.

He said the Alliance had yet to deliver on many of its stated goals.

Mr Torbay advised the NESAC mayors, general managers and councillors at the meeting to capitalise on progress achieved early in the process and to seek out collaboration where possible with other councils and communities.