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Why Amalgamations Don’t Work

By Kevin Thomason

Published in June 2019

Quite simply, most amalgamations don’t work and have been shown, time and time again to result in significantly higher costs, less representation and bloated, less responsive bureaucracies. They seldom achieve the expected efficiencies or cost savings, and many amalgamated municipalities end up investigating ways to de-amalgamate after learning that bigger isn’t always better.

Unique Communities

The reason why amalgamation has been consistently rejected is that we are unique communities – separate cities with different neighbourhoods, ambitions, priorities and approaches.  Each Official Plan demonstrates the differences in our goals, challenges, budgeting and decision-making approaches. Sit through a Wellesley Township Council Meeting and contrast it to a City of Waterloo or Cambridge Council Meeting. In one community rural Mennonite issues are important, in others it is rapid transit, or high-tech issues. We already have successful custom governance solutions tailored to the needs of each community.

Consistently Rejected

The City of Waterloo and Kitchener have consistently rejected amalgamation discussions. It was recently rejected resoundingly by a two to one ratio by the citizens of Waterloo in 2010, and has been rejected by every other municipality in Waterloo Region at various times. Don’t even talk to anyone in Cambridge about amalgamation – they are still reeling from 1973….

Most Corporate Mergers Fail

The Harvard Business Review estimates that 70 to 90 percent of all corporate mergers and acquisitions fail. Any CEO knows that alignment is essential and the companies need to share common strategies, goals, and ambitions for a merger to be successful. Our communities have different goals and ambitions – some want to grow others want to stay the way they are. The City of Waterloo has an official “Environment First” motto and has taken extraordinary steps to protect vast tracts of natural areas – even repealing their urban boundary, while other municipalities have prioritized development.  

If leading companies run by highly compensated experts, can’t be successful 70 to 90 percent of the time, how can a rushed review with far fewer resources have any chance of making our communities better?

Loss of Representation and Control

We currently have an incredible array of dozens of Councillors from all walks of life representing communities and neighbourhoods.  We only have four full-time municipal politicians in the entire Region, while many Councillors put in almost full-time hours, for low compensation. We are going to be hard-pressed to find a more effective, economical solution. If hard working community representatives are replaced with staff, this lessens democracy and makes government more expensive.  

Lower Involvement and Engagement

Amalgamated cities have discovered that people tend to participate less in larger cities – volunteer rates decline, there are fewer neighbourhood initiatives such as local arts and cultural events, fewer sporting activities and teams, as well as often the loss of local newspapers when there is no longer a local municipal government to report on. A single Regional large bureaucratic government could undermine civic participation.

Amalgamation Isn’t Necessary

Amalgamation isn’t necessary. Many of the most successful cities in the world are actually clusters of communities.  Silicon Valley is comprised of 40 different municipalities, London England is made up of 33 different boroughs, and Boston is a staggering 282 municipalities.  

Do we need amalgamation to make a bigger impact globally? In fact, many highly successful cities are like Waterloo Region, diverse clusters of communities working together.

Conclusion

In conclusion, why would anyone want to pay more for fewer services, less representation, diminished democracy, and reduced control, while facing a significant loss of community and identity, along with staggering odds that things aren’t going to work out nearly as well expected?

We are already the envy of the world. Our current community structure isn’t a problem to be solved, our diverse community of communities working together are a large part of the reason for our success.

 

Kevin is a Waterloo-Wilmot Township Resident

Good Work News is The Working Centre’s quarterly newspaper that reports on our latest community building efforts and seeks out ideas which redefine work, consumerism, and sustainable living. First published in 1984, we have now published over 150 issues with a circulation of 13,000.

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