Boswell should put money where his mouth is: Fraser

30 April 2007

Boswell should put money where his mouth is: Fraser

Federal Senator Ron Boswell is way off track in seeking Commonwealth Government intervention in Queensland’s Local Government Reform program, which he proposes should include withholding Financial Assistance Grants to local councils.

Local Government and Planning Minister Andrew Fraser today dismissed Mr Boswell’s claims that Queensland’s councils needed to be the subject of a joint review by the Federal and State Governments.

“The last thing local government in this state needs is another review – what it needs is action to prevent those councils which are not currently sustainable becoming more so in the future and that’s precisely what the State Government is doing,” Mr Fraser said.

“The Australian Local Government Association commissioned Price Waterhouse Coopers to prepare a review of council sustainability across the country and what that recommended was the Federal Government establish a $250 million infrastructure fund to help get local government out of the precarious situation it is in.

“Instead of writing to the Commonwealth Local Government Minister asking him to consider whether Financial Assistance Grants be withheld, he should be writing to Peter Costello asking him what became of that $250 million fund.

“Nobody ever solved a crisis of financial shortfalls – such as many of our existing councils are facing – by withholding money.”

Mr Fraser said Queensland Treasury Corporation reports on the finances of Queensland councils which had been taking part in the voluntary Size, Shape and Sustainability program showed that 43 per cent were either financially weak, very weak or distressed.

“There’s no question that local government in Queensland needs to become more sustainable and by instituting this program of reform that is precisely what the government is doing.

“The process should be left to the independent, seven-member Reform Commission which has been established by the government and is headed by Bob Longland, a former electoral commissioner, and representatives from all sides of politics.

“We will be listening to the Commission when it makes its recommendations in August and I urge everyone on all sides of politics to do the same.”

Media Contact Chris Taylor 0419 710 874