However, councillors said the move did not necessarily mean they were in favour of an amalgamation.

Under the NSW government’s local government reform package “Fit for the Future”, Gunnedah is listed as “potentially merging” with Liverpool Plains.

The reform package concentrates heavily on amalgamation of councils, dedicating hundreds of millions of dollars to assisting with mergers.

Gunnedah mayor Owen Hasler said it had been indicated that councils mentioned in the process should “have discussions” about mergers.

“I believe it is important that we have those discussions,” Cr Hasler said.

“We need to indicate to Liverpool Plains that we would be prepared to have those discussions – not in a predatory way, but it seems to me a bit silly that 10 years down the track we should have to look at those discussions.”

He said Gunnedah Shire Council was in a strong financial position and would have to be wary of taking on a “lame duck”.

Council general manager Eric Groth said the councils had been listed as “potentially merging”, rather than just “merging” or “no change”, suggesting council could have some say in the matter.

Cr Gae Swain council needed to be “on the front foot” for when the state government came looking for answers.

Cr David Quince said he was against any merger.

“I am definitely against any sort of amalgamation that detracts from a shire’s identity,” Cr Quince said.

“Queensland has created vast super-councils and I don’t think there has been any benefit at all.

“Where councils are self-sufficient, it is definitely not necessary. That’s my feeling on it.”

Cr Rebecca Ryan said council could not be expected to make any decision unless it had discussions with Liverpool Plains about the implications.

Cr Swain said while councillors may not like the idea, they still had to consider it.

Cr Quince said he would support discussions with Liverpool Plains on the basis that they could provide fuel for an argument against amalgamation.

Council voted to begin talks with Liverpool Plains.

If Liverpool Plains Shire Council agrees to participate in talks, the results will need to be included in council’s submission to the state government which is due next year.

Council also voted to express its interest in the Namoi Councils group becoming a pilot for the joint organisations system.

Cr Hasler said Namoi Councils had been held up as a good example of how an organisation of regional councils should operate, but to be in the running for one of up to six pilot spots, council would have to put in a submission by Friday.

If the Namoi Councils is chosen to be a pilot joint organisation, it will be eligible for $300,000 in funding and will help set the agenda for other joint organisations.

“Namoi Councils would be able to set up the parameters for what a joint organisation would do,” Cr Hasler said.

“It is better that we are the ones setting the parameters rather than have them set for us.”

Council voted in favour of writing to Namoi Councils committing to Gunnedah Shire Council participating in the pilot program.

Cr Hasler said the joint organisations were a separate issue to mergers, and being part of a joint organisation did not commit the council to any amalgamation.

The NSW government released its Fit for the Future package last month, saying many councils were already in financial trouble and the current system would not work into the future.

The government has committed $1 billion to the program which will see a number of changes come into effect in 2016, including two-year terms for mayors elected by fellow councillors.

There has been a statewide call for the election of mayors at full elections, rather than within council, particularly for larger councils.