Published Monday, 28 July, 2008 at 04:43 PM
Minister for Main Roads and Local Government
The Honourable Warren Pitt
Minister expects detailed submission on funding for amalgamation costs
Local Government Minister Warren Pitt says he looks forward to receiving a detailed submission from the Mackay Regional Council justifying its claim for extra funding to cover amalgamation costs.
Mr Pitt, who will meet with the council tomorrow morning, said he doubted he would be able to give an on-the-spot decision on the submission – either for or against.
“Hopefully, the council will present a comprehensive submission on the issue of amalgamation costs and savings, and if that happens it will need to be examined and absorbed.
“If, however, the council fails to address the savings side of the equation, then I will be able to provide an immediate response.
“In a nutshell, I will be reinforcing what I have said many times now, and that is any submission the council puts on the table must address the question of savings before the government is prepared to consider it.
“From newspaper reports, the council seems to believe it has a strong case and will be able to justify its claim for additional funding.
“I will certainly be interested to receive and review the council’s submission.
“I’m yet to be convinced it does have a case. Experience elsewhere has shown that savings arising from operational efficiencies and economies of scale outweigh the costs a council may incur as a result of being amalgamated with another council,” Mr Pitt said.
“There have been a number of reported claims that the council faces a $750,000 shortfall between the amalgamation costs it is facing and the money that has been provided so far by the State Government.
“I am unable to comment on the veracity of this figure, as I have received no information from the Mackay Regional Council in support of its claim.”
Media contact: Minister Pitt’s Office 3227 8819
Mr Pitt, who will meet with the council tomorrow morning, said he doubted he would be able to give an on-the-spot decision on the submission – either for or against.
“Hopefully, the council will present a comprehensive submission on the issue of amalgamation costs and savings, and if that happens it will need to be examined and absorbed.
“If, however, the council fails to address the savings side of the equation, then I will be able to provide an immediate response.
“In a nutshell, I will be reinforcing what I have said many times now, and that is any submission the council puts on the table must address the question of savings before the government is prepared to consider it.
“From newspaper reports, the council seems to believe it has a strong case and will be able to justify its claim for additional funding.
“I will certainly be interested to receive and review the council’s submission.
“I’m yet to be convinced it does have a case. Experience elsewhere has shown that savings arising from operational efficiencies and economies of scale outweigh the costs a council may incur as a result of being amalgamated with another council,” Mr Pitt said.
“There have been a number of reported claims that the council faces a $750,000 shortfall between the amalgamation costs it is facing and the money that has been provided so far by the State Government.
“I am unable to comment on the veracity of this figure, as I have received no information from the Mackay Regional Council in support of its claim.”
Media contact: Minister Pitt’s Office 3227 8819