Dear residents and ratepayers of North Burnett Regional Council,
I write to you all collectively following a series of complaints to my office about the significant rate rises imposed in the latest budget by NBRC.
Firstly, it’s tough and it’s incredibly hard for the residents and ratepayers of the North Burnett to cop. I also appreciate that the community would expect their rates and charges to reflect the services and infrastructure delivery in their area.
To be clear, rates and charges set by each council is a matter for them, and we do not have the powers to intervene in these decisions directly. Instead, as your state member, below are a few things on what the Queensland Government can do and is doing to address systemic issues within Local Governments across our state, and to improve the local economy. These changes and improvements are necessary to ensure we as a state are not contributing further to the financial challenges of our local councils.
GROWING RATEPAYER BASE AND LOCAL ECONOMY
In the immediate future, we need more economic opportunities in the region, attracting industries that pay higher rates. Our $90 million commitment to building Cooranga Weir is progressing, with $18.6 million allocated in this year’s budget to get this project started. This will enable more tree crops to be planted in the area – which are charged higher rates than other farms. It will also provide an economic boost to the area during construction. We are getting on with the job of rebuilding Paradise Dam which will also have broader economic flow on benefits.
We are investing in the business case for Mt Rawdon pumped hydro – should it go ahead, this will be another big industry that council can seek further rating revenue from. It will also provide important jobs at the now end-of-life Mt Rawdon gold mine. I continue to advocate for important local road upgrades, including those needed to allow road trains into our region. This will improve freight costs in and out of the region and encourage more tourists to the area.
WORKING WITH LOCAL GOVERNMENTS
Local Governments have not been treated with respect by the state for many years, meaning they did not get the resourcing, access and regulatory changes they were calling for. The Crisafulli Government has reset this partnership, committing to working with local governments on a wide range of legislative and regulatory changes. We have appointed former mayors and councillors – those who understand local government – to the Local Government Grants Commission, helping ensure that Federal Assistance Grants (FAGs) are distributed appropriately across the state.
FUNDING SOURCES
I note that councils across Australia have been calling for an increase in FAGs from the federal government for many years, and these pleas have fallen on deaf ears.
Further to this, Queensland has now lost more than $5 billion in GST revenue from the federal government over the next three years. We are being punished for being a prosperous state, and the Prime Minister is allowing Victoria to be rewarded for their numerous failures. This is $5 billion less we now have to deliver critical services as a state, making it difficult to prop up councils further than we already do. Our priorities as a state are to rein in public sector spending, reduce infrastructure blowouts and deliver targeted cost of living relief while navigating not only this GST shortfall, but the challenging fiscal environment we inherited from our predecessors.
The federal government is the master of the purse strings and as such, it is clear that further federal advocacy is needed to improve funding sources such as FAGs, and reverse the horrendous decision to strip us of important GST revenue.
COST BURDENS ON COUNCILS
Red tape in government has gotten out of hand. Earlier this year, we launched the Red Tape Reduction Taskforce for local governments. From this, we will work with councils to reduce their regulatory burden.
Local Government Laws also need to be changed to empower elected council officials once again. We are committed to changing these laws, and this is currently in process with further announcements to be made shortly.
The depreciation requirements imposed on councils for their assets are challenging – and expensive – for them to manage. We know this needs improving, and accordingly, we are working with councils to address this as best we can. There are further federal government restrictions on this matter that also cause challenges.
As outlined by NBRC, costs for sourcing gravel and building roads have grown exponentially. This makes the maintenance of roads incredibly costly for both councils and the state. There are several changes we are making that will assist. Firstly, too much red tape has prevented councils from sourcing gravel locally. The Minister for Local Government is currently working with relevant agencies to make reforms. Some of these changes will be made imminently.
Productivity in the construction sector impacts civil construction – including roads – as well. Queensland has the worst productivity of any state in the nation, increasing costs on important projects. The CFMEU is a key cause of these inefficiencies and costs. We have launched the Productivity Commission, whose first responsibility is to investigate the construction sector. Over the weekend we launched a Commission of Inquiry into the CFMEU, to shine a light on their bullying and intimidation tactics which held departments and construction companies to ransom over many years. This may feel well removed from the North Burnett, but this issue flows through to impact on local projects, including tenders released by NBRC.
MINOR, TARGETED RELIEF
The cost of living has been challenging for all Queenslanders. While there are many fundamental changes we are working on as a state, something of note is the Queensland pension rate subsidy. This is up to a value of $200 per year for those eligible. While this is only a fraction of your rate bill, if you are not yet receiving this, I encourage you to check your eligibility. Find out more about this subsidy here: qld.gov.au/community/cost-of-living-support/concessions/property-concessions/rates-subsidy
I note I am formally writing to the Minister responsible for this subsidy, asking them to consider a review into the amount offered, and place on record my request for an increase in the future.
I note that all this information does not fix the problem in front of you at present regarding the significant rate rises. These many changes outlined will take time to flow through, but ideally, some of these benefits will be seen by the time of the next council budget. The new Crisafulli Government knows there is a lot of work to be done and is working on reforms to reduce red tape and cut costs for councils. We are being thorough and measured in our approach to improving things, as we do not wish to unnecessarily burden councils with unintended consequences of changes. This makes a big change from the previous decade of neglect by the former Labor Government.
I would encourage everyone to continue engaging with your local councillors, particularly if you have suggestions on where savings could be found to improve council’s financial position.
HOW TO CONTACT ME
I had been planning mobile offices over the next month across the region, but given this matter and my unavoidable absence from community meetings, I will be having them as soon as practical, starting next week. Please contact my office on 4845 1100 or Callide@parliament.qld.gov.au.
My next mobile offices will be:
Gayndah (21 July): 8:30 – 10:30am
Coalstoun Lakes (21 July): 11:30am – 12:30pm
Biggenden (21 July): 1:30 – 3pm
Mt Perry (23 July): 2:30 – 4pm
Mundubbera (30 July): 9 -11am
Eidsvold (30 July): 12-1.30pm
Monto: TBC
I feel for the ratepayers and residents of the NBRC at this time. I will continue to do what I can within my responsibilities as your state representative, to improve this situation for all ratepayers.
Yours sincerely,
Bryson Head MP, Member for Callide
