Are councils fit for the future

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Are councils fit for the future?

The Property Council of Australia has strongly questioned whether the current crop of 29 councils for 515,000 people provides a fit for the future governance structure in Tasmania.

In the wake of the Auditor-General’s Report which highlighted that 14 councils delivered a net underlying deficit to rate payers, Executive Director Brian Wightman called on local government leaders as a matter of urgency to inform their constituents of why they were in debt, how they were going to resolve the situation and the reasons underpinning why many councils have increased rates more than the consumer price index.

Mr. Wightman recognised that an issue was regional infrastructure, including events and festivals where a small number of councils were paying for the majority of rate payers across the state.

“For example, regional infrastructure such as Aurora Stadium and the Aquatic Centre benefit all northern Tasmanians yet they are supported by Launceston City Council rate payers who not only pay to enter, they pay for the upkeep via their rates.

“Launceston City Council rate payers also support the iconic Cataract Gorge and the Queen Victoria Museum and Art Gallery which again is of benefit to everyone across the region,” he said.

Mr. Wightman also acknowledged the ongoing dispute between the Northern Midlands Council and the Launceston Airport.

“While it may be fine for the Northern Midlands Council to complain about not receiving rates from the Launceston Airport, the question must be asked, how much capital have they injected into the redevelopment?

“The reality is that infrastructure such as the Airport should be in the municipality of Launceston.  A Launceston City Council Alderman sits on the Board; they are 10 per cent owners and significant stakeholders.  Northern Midlands would not even be collecting rates for this property if our council structure in Tasmania was fit for the future,” he said.

Mr. Wightman reiterated that there was now a significant body of research and opinion polling which supported the call for action on local government reform.  The Southern Tasmanian Councils Authority’s independent report commissioned by the councils themselves and then ignored, the Deloitte Access Economics Report, the 2013 Sansom Report in NSW followed by the recently released IPart Report which, when combined with regular opinion polling over the last four years, strongly articulates the reasons why change must occur.

“The Property Council strongly believes that the current number of councils in Tasmania delivers a structure which is not fit for the future.  In a rapidly changing and connected world, combined with an ageing population Tasmania’s local government sector must conduct business in a far more cost effective manner,” he concluded. 

Media contact:  Brian Wightman  |M  0429 073 773  |E  [email protected]