Bill Shorten's promise to bankroll council merger plebiscites is a political stunt that proves he's not up to making tough decisions, NSW Premier Mike Baird says.
Labor has called the state Liberal plan to reduce the number of councils from 152 to 115 "undemocratic" and has pledged $20 million for plebiscites on the issue.
Mr Baird says the federal opposition is just trying to win votes, and merger decisions would still be the responsibility of the state, regardless of the public polls.
He said credit agencies wanted political leaders willing to get the economy in order, claiming Mr Shorten's opposition to mergers raised a "white flag" on Australia's triple-A rating.
"What they're (rating agencies) looking for ... is for a government to have the political will to make the long-term decisions that are required to ensure your finances are in order," he said on Monday.
"What Bill Shorten has shown is he's not prepared to make those sort of tough decisions for the people of Australia."
Mr Baird says his government conducted years of consultation and an examination process before councils were merged.
Mr Shorten was now intervening in NSW issues despite previously calling the Victorian government's dispute with the Country Fire Authority a state problem, he said.
"Today here he is changing his mind (on intervention in state issues)," Mr Baird said.
"I say to Bill Shorten, what's his proposal when the majority of councils here in NSW have expenditure greater than revenue?"
Labor says plebiscites would give councils the chance to show voter support against amalgamations, and could even be held by councils that were not slated for mergers to send a message to parliament.
The party says the move is similar to that of the Howard government in 2007 when Queensland amalgamated councils.
"The Liberals' plan to sack directly elected representatives and force councils to amalgamate is an insult to democracy and the people of New South Wales," Mr Shorten said on Monday.
The NSW Greens says Labor's commitment is a "good start" but wants the party to go one step further and legislate to make them binding.
"It's good to give people a say in plebiscites, but to be more than just a political gesture there must be a commitment to legislating to enforce the outcome of any vote," Greens MP David Shoebridge said.
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