The area around the City of Newcastle as it existed in the late 19th century was divided into a series of small, physically discrete townships—each with their own sense of local identity, Between 1870 and 1890 each of these townships eventually established their own municipal body to deliver essential services such as roads, drainage and nightsoil collection. This fragmented system of local administration created some problems including the unequal distribution of resources, high administration costs and a poor standard of public administration. By as early as 1891, the Newcastle Morning Herald was already speculating about the future amalgamation of these townships into a Greater Newcastle, stating " It is possible that, in the near future, similar action will be taken with regard to the Borough of Newcastle and adjacent municipalities; for the open spaces which at one time separated the parent municipality from its children are being quickly built upon, and the indisposition of councils to co-operate for the carrying out of necessary improvements have been often unfavourable to the health and interests of the ratepayers of the municipalities concerned". Arthur Griffith, the New South WalesMember of Parliament for Waratah, proposed a scheme for the creation of Greater Newcastle in 1901. At a meeting in February 1901, Griffith expressed his surprise at the number of "pocket-handkerchief municipalities" and his concern about their solvency - offering as a solution a £30,000 grant to kick start a newly unified city council. The abortive proposal soon lapsed, the result of a lack of enthusiasm from both the municipalities and the general public. In 1919, the New South Wales government held a Royal Commission into the question of the Constitution of a Greater Newcastle. The Royal Commission made three broad recommendations:
It defined boundaries for a future Greater Newcastle - including "essential" and "additional" areas;
It recommended a 20-member council elected from five wards and a directly elected mayor. Day-to-day administration was recommended to be vested in a general manager in a council–manager government arrangement.
It recommended the new council should be given an extensive range of powers, including utilities such as electricity, gas, water and sewerage as well as services such as transport and slaughter yards.
A change of the New South Wales government and subsequent responsible minister combined with hostility from some of the municipalities and other vested interests saw these recommendations lapse.
Amalgamation success
The Great Depression had a significant effect on Newcastle and on the finances and operations of its constituent municipalities. In an attempt to address some of the problems of the struggling Councils, in 1933 the Mayor of Newcastle, William Shedden and the New South Wales Minister for Local GovernmentEric Spooner revived the idea of a Greater Newcastle. Much of the ensuing debate regarding amalgamation related to rating and land values; the City of Newcastle had higher property values and hence a larger and stronger rate base than the suburban municipalities. The push for amalgamation stalled when PremierBertram Stevens pledged that Greater Newcastle would not happen if it would lead to an increase in rates, followed closely by the death of Shedden, the amalgamation's leading local advocate. It wasn't until 1937 that Spooner was able to bring the issue of a Greater Newcastle to a head. Spooner introduced the Greater Newcastle Bill in November that year - with minimal consultation with the affected Councils. The Bill had the qualified support of the localMembers of Parliament and was passed and given assent in less than a month. The Act set the date for amalgamation as 1 March 1938 or "such later day as may be proclaimed by the Governor." The actual amalgamation date was set by proclamation as 2 April 1938.
