Before making a decision on any local mergers, the government will review an alternative proposal by Port Stephens Council to merge with Dungog Shire Council. We will have to wait until that review process is completed.

Newcastle City Council would prefer to remain as a standalone council but nominated Port Stephens as our preferred merger partner in the event of forced amalgamations.

We have delivered projects and improved services while also balancing our budget to be deemed financially fit by IPART. We are committed to restoring trust and collaborative leadership and refocusing our efforts on delivering our long-term goal of a financially sound council and a smart, liveable and sustainable city.

Newcastle is on the cusp of transitioning from a great regional city to an emerging global city and we are doing our bit to attract investment, jobs and opportunity. We are in good shape to stand alone or be merged into an entity that could become a global city encompassing port, airport, defence, university, industrial and health hubs.

I'd like to thank Newcastle City Council staff for continuing to deliver high-quality services and facilities to the community during this uncertain time.

A public inquiry into the Port Stephens-Dungog alternative merger proposal has been announced by the Office of Local Government. The inquiry is open to public comment to June 26, 2016.