Rates impact from budget

Arthur Gorrie | 11th July 2009

GYMPIE Region ratepayers and homebuyers are looking towards tough times ahead, thanks to major State Government funding cuts.

AAP

GYMPIE Region ratepayers and homebuyers are looking towards tough times ahead, according to their council's Works and Services Committee chairman Larry Friske.

“The future looks a little grim,” Cr Friske told this week's council meeting, in a comment on major State Government funding cuts affecting the likely cost of council services and the price of housing.

The State Government's self-described “tough budget for tough times” will impact heavily on council's budget, which will undoubtedly pass on to ratepayers and property developers any major impost from the subsidy cuts, including the fuel subsidy loss which on its own will add an estimated $65,000 to council's fuel bill.

Cr Friske was responding to a letter from the Local Government Association of Queensland, warning of other cost pressures, from the government's decision to scrap water and sewerage subsidies for councils. This was expected to cost Queensland home buyers “$1 billion over the next decade.”

Council did, however, “gratefully receive” $1.65 million in disaster assistance after this year's extreme wet weather. But there is more, according to advice to council.

“THAT'S $1.6 million gratefully received,” Cr Friske told the weekly council meeting, after receiving the advice of emergency funding from Local Government Minister Desley Boyle.

In a letter formally received by council this week, Ms Boyle confirmed advice from Engineering director Bob Fredman that there is more where that came from, with separate funding for longer term repair works. “That's a separate application,” he said.

Ms Boyle said the money, under the Natural Disaster Relief and Recovery Arrangements” scheme, was for “emergency works and immediate post-disaster repairs caused by flooding during April 2009.

“I am pleased to approve a grant of $1,685,598 towards the cost of emergency works and immediate post-disaster repairs.”

Less welcome at the meeting was news from the Local Government Association of Queensland that State Government budget cuts would have an adverse effect on either council's own budget or the hip pockets of developers and/or home buyers.

The letter, from LGAQ executive director Greg Hallam, said: “The State Government's decision to scrap the water and sewerage subsidy for urban councils will add thousands to the price of a new home - more than $1 billion over the next decade.”

Mr Hallam's letter quoted Acting LGAQ president and Sunshine Coast Mayor Bob Abbot warning that the move would cost councils “about $85 million annually and was at odds with efforts to tackle housing affordability.”