Published Monday, 22 September, 2008 at 05:45 AM

Minister for Main Roads and Local Government
The Honourable Warren Pitt

QTC to review council funding applications

The State Government today announced that the Queensland Treasury Corporation (QTC) will evaluate submissions received from councils for additional costs associated with council amalgamations.

Local Government Minister Warren Pitt said the evaluation process required a rigorous examination of submissions to satisfy all the parties involved.

“An important aspect of this evaluation is impartiality. It is vital that councils have confidence in the process and feel that their applications have been judged on their merits,” Mr Pitt said.

“In order to remove any perception of bias, these reviews will be conducted outside the Department of Local Government.

“That’s why I’ve decided to appoint the Queensland Treasury Corporation to conduct these impartial financial reviews.”

Mr Pitt said he had asked Queensland Treasury Corporation to analyse the actual and potential savings a council could accrue through amalgamation, as well as its costs.

“Each council submission will be treated fairly, with a focus on both the costs and savings from the amalgamation process,” he said.

“The evaluation process must include an assessment of savings to determine whether a council has been unduly financially burdened by amalgamation.

“Due to the wide variation in council amalgamation conditions, the evaluation must also be flexible enough to examine, and take into account, unique factors from each submission.

“This process will enable councils to confidently submit their applications for an impartial review.

“By setting up a consistent and robust process, we will be able to provide each council with a timely response to their submission, enabling all parties to act on the evaluation findings and move forward in building strong, sustainable and prosperous councils across Queensland.

“To date, the department has received two applications for additional funding as a result of amalgamation, with several other councils indicating that submissions are being prepared.

“These two funding applications – from Rockhampton Regional Council and Townsville City Council – will be the first to be reviewed under this process,” Mr Pitt said.

Media contact: Minister Pitt’s Office 3227 8819 or 0417 789 208