Published Thursday, 13 November, 2008 at 01:21 PM
Minister for Main Roads and Local Government
The Honourable Warren Pitt
Minister welcomes final report on council financial sustainability
Local Government Minister Warren Pitt has welcomed the release of the Queensland Treasury Corporation’s final report into the financial wellbeing of Queensland’s pre-amalgamation local government sector.
Mr Pitt said QTC’s ‘Financial sustainability in Queensland local government – findings and recommendations’ report once again showed the need to build a stronger local government sector for Queensland’s future.
“The statewide financial review of local government began in 2006, involving councils in the former voluntary Size, Shape and Sustainability initiative,” Mr Pitt said.
“The final QTC report released today confirms that of the 109 councils reviewed, 38.5 per cent of councils were either ‘weak’, ‘very weak’ or ‘financially distressed’.
“In particular, concerns were once again raised about an over-reliance on rates revenue, under-utilisation of appropriate debt funding for capital projects and the lack of financial forecasting beyond three to five years.
“The results of the financial sustainability reviews carried out by QTC were one of the indicators supporting the local government reform program – and the release of the final report today has confirmed this decision.
“The findings also align with the national report by PriceWaterhouseCoopers in 2006, which showed councils across the country faced major financial sustainability challenges and, without reform, up to 30 per cent might not be sustainable.
“As a result of the historic March 15 elections this year, the face of local government in Queensland has changed significantly.
“We now have a system of local government that is better equipped to manage Queensland’s growing population, and better placed to tackle the challenges of planning not just for this term of council, but over a 10 or 20-year horizon.”
Mr Pitt said QTC had also developed an evidence-based methodology, which would facilitate continued research and development into future financial sustainability of councils.
“As part of its review of the financial position of councils in Queensland, QTC has developed a set of indicators tailored to the unique requirements of local government,” Mr Pitt said.
“There has been significant interest in this methodology from local governments in other states as, like Queensland, they work towards better long-term planning and financial sustainability.”
The report is available on QTC’s website www.qtc.com.au.
Media contact: Minister Pitt’s Office 3227 8819
Mr Pitt said QTC’s ‘Financial sustainability in Queensland local government – findings and recommendations’ report once again showed the need to build a stronger local government sector for Queensland’s future.
“The statewide financial review of local government began in 2006, involving councils in the former voluntary Size, Shape and Sustainability initiative,” Mr Pitt said.
“The final QTC report released today confirms that of the 109 councils reviewed, 38.5 per cent of councils were either ‘weak’, ‘very weak’ or ‘financially distressed’.
“In particular, concerns were once again raised about an over-reliance on rates revenue, under-utilisation of appropriate debt funding for capital projects and the lack of financial forecasting beyond three to five years.
“The results of the financial sustainability reviews carried out by QTC were one of the indicators supporting the local government reform program – and the release of the final report today has confirmed this decision.
“The findings also align with the national report by PriceWaterhouseCoopers in 2006, which showed councils across the country faced major financial sustainability challenges and, without reform, up to 30 per cent might not be sustainable.
“As a result of the historic March 15 elections this year, the face of local government in Queensland has changed significantly.
“We now have a system of local government that is better equipped to manage Queensland’s growing population, and better placed to tackle the challenges of planning not just for this term of council, but over a 10 or 20-year horizon.”
Mr Pitt said QTC had also developed an evidence-based methodology, which would facilitate continued research and development into future financial sustainability of councils.
“As part of its review of the financial position of councils in Queensland, QTC has developed a set of indicators tailored to the unique requirements of local government,” Mr Pitt said.
“There has been significant interest in this methodology from local governments in other states as, like Queensland, they work towards better long-term planning and financial sustainability.”
The report is available on QTC’s website www.qtc.com.au.
Media contact: Minister Pitt’s Office 3227 8819