The independent pricing regulator has quietly dropped a review of the financial model for local government that was announced earlier this year.

IPART called for submissions for the inquiry in January,  flagging plans to review the financial and operational performance of councils, including whether the current funding system delivered value for money and could sustainably support community needs.

However in a statement on its website IPART says it received a letter from the state government on March 19, two days after the consultation period closed, withdrawing the referral for the review.

In the letter to IPART chair Carmel Donnelly, Premier Chris Minns says he is withdrawing the referral made to IPART on January 11 to avoid doubling up with a parliamentary committee that was established on March 14 inquire into the ability of local governments to fund infrastructure and services.

“The reason this referral is being withdrawn is to avoid unnecessary duplication, as the matter will now instead be considered by the NSW Parliament’s Standing Committee on State Development,” Mr Minns writes.

The committee, which will open hearings on  May 17, is expected to report back to the government ahead of local government elections on September 14, Mr Minns said.

IPART says it will consider all feedback received in response to its original draft terms of reference and provide a summary of issues to the NSW Government.

It will also publish all non-confidential submissions.

Extension for federal probe

It comes as ALGA president Linda Scott announced the local government peak had successfully requested a four week extension for submissions to a federal inquiry into the sustainability of councils.

The House of Representatives Standing Committee on Regional Development Infrastructure and Transport will consider a range of issues including financial  sustainability and funding, changing infrastructure and service delivery obligations and workforce attraction and retention.

Cr Scott urged councils to have their say.

“ALGA will provide a comprehensive, evidence-based submission on behalf of all local governments,” she said.

“However, it’s important that the Parliamentary Committee have a full understanding of the challenges facing Australian councils – as well as how we could support our communities to thrive with more sustainable funding – so I encourage all councils to provide their own submissions.”

The committee will accept submissions until May 31.