Mayor’s View – 14th August, 2008
Politics is a strange business. It’s not for the faint hearted and it’s just as well I enjoy it! Whether one is working too hard for rate payers, or not working hard enough, is clearly in the eyes of the beholder. It’s hard to win!
The Minister for Local Government, Warren Pitt, has criticised me for standing up for rate payers when I pointed out that in the new Cassowary Coast Region they have been disadvantaged by the amalgamation. On the other hand, in the same week, I have been censured by a previous southern mayoral opponent for not standing up to the State Government for rate payers, post amalgamation.
My comments about the outcomes of amalgamation, referred to by Minister Pitt as “untrue” “unhelpful” “playing the blame game” and “making the State Government the scapegoat for local government’s problems”, were made in the context of the serious $23.5 million error the State Government made pre amalgamation, in wrongly counting one-off Cyclone Larry money as annual, recurrent funding. As I have previously said on many occasions, it is this error which has left us in a financially weak position, post amalgamation. The decision to amalgamate the former Johnstone and Cardwell Shires, to form a viable new region, was made on calculations which were simply wrong. We are therefore entitled to more support than has already been forthcoming from the State Government, in addition to assistance with amalgamation costs, as offered to other new regions.
It is not a matter of making the State Government our scapegoat, or asking for handouts or rewards for the poor financial management of the past. To again quote the Orion Report ” The current circumstances of the Johnstone Shire council coming into this amalgamation means that the outcome will not meet the Queensland Government objective of creating stronger councils”.
The CCRC has received $350,000 for transition costs and an extra $1 million in recognition of its weak financial position, possibly because of the $23.5 million error noted above. We are grateful for the extra $1 million and also for the recently proposed engagement of an experienced advisor to assist with the CCRC’s financial modelling and business practices.
I really don’t want to play the blame game or engage in swapping weekly letters. However I repeat, we have been left in the lurch and more compensation is due. To quote David Spearritt in the Orion Report “When this additional $1 million was announced it is understood the then Minister reassured the Council that this was only the first instalment”.
The infrastructure backlog can be alleviated, according to Spearritt, by the State Government taking over the two main Innisfail bridges (which in fact are part of their main road system) and providing high level subsidies for water and sewerage works, accompanied of course by sound financial management by the CCRC.
I remain a supporter of the concept of amalgamations and regional government and there will be efficiencies over time from this amalgamation. In the meantime however there are costs to bear far in excess of any efficiencies that it will yield, and these costs should be appropriately shared.