Joint Statement:

Premier and Minister for Trade
The Honourable Peter Beattie

Minister for Local Government, Planning and Sport
The Honourable Andrew Fraser

Friday, May 18, 2007

FINANCIALLY DISTRESSED COUNCILS NAMED

Premier Peter Beattie and Local Government Minister Andrew Fraser today released a list of Councils outlined in the Queensland Treasury Corporation’s (QTC) advice to the government, naming those which fall into the 43 per cent found to be either “weak”, “very weak” or “financially distressed”.

The statewide Financial Sustainability Review of Local Governments in Queensland report by the QTC assessed 94 Queensland councils involved in the former voluntary Size, Shape and Sustainability review.

At the time the Government called for all Councils to disclose their financial status to their communities.

Releasing the full list of Councils involved in the review, Mr Beattie today urged each of them to make the actual contents of each report public.

“Following the Government’s announcement about Local Government Reform in April the Minister for Local Government wrote to all mayors urging them to make their individual QTC review assessments publicly available on their websites as soon as possible.

“Some Councils have complied, others have not.

“Ratepayers across Queensland deserve transparency and to know that Local Government Reform aims to deliver better services for all communities.”

Mr Fraser said reform needed to happen and the government was determined to achieve reform.

An independent report by PricewaterhouseCoopers, commissioned by the Australian Local Government Association, found that without reform between 25 and 40 per cent of local governments may not be sustainable across Australia.

“The specific Queensland advice tabled previously shows that figure to be 43%,” Mr Fraser said.

The Queensland Auditor General’s annual report into the finances of Councils for 2005-06 and that report showed 59 Queensland Councils had audit issues in the moderate or high risk categories.

The report also showed that long term viability remains a significant issue for the local government sector with an aggregate deficit of $290 million for 68 Councils in the period.
“Without reform we face a situation where many local governments will collapse under the weight of mounting pressure,” Mr Fraser said.

“There are challenges ahead but doing nothing is not an option.

“With a week before submissions close, I urge each and every Queenslander – not just Councils, Mayors and Councillors – to make a submission to the Local Government Reform Commission.”

18 May, 2007

Media Contacts: Office of the Premier (07) 3224 4500
Office of the Minister Chris Taylor 0419 710 874

PLEASE NOTE: LIST ATTACHED BELOW

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List of Councils outlined in the Queensland Treasury Corporation’s (QTC) advice to the government
MediaAttachments/2007/doc/Shire List.doc