Some of Queensland’s smallest councils are rejoicing after a review will see them receive a bigger slice of the pie from the state government.
The Queensland Local Government Grants Commission took a closer look at its financial assistance grants (FAGs) program and although it kept its ungainly name, the revenue will be more fairly distributed across the state.
North West councils were some of the biggest winners. Four shires will benefit by more than $1 million each financial year.
Greg Hoffman, chief executive of the North West Queensland Regional Organisation of Councils, said the review had been a major win for remote municipalities.
“We’ve done particularly well as a region with our FAGs allocation going from $47.8 million to $57.4 million, so just short of $10 million or a 20 per cent increase,” he told North West Weekly.
“All councils in Western Queensland, except one, received a significant funding increase.”
That one council was Maranoa, which saw its road funding go up by 34 per cent, but overall FAGs allocation drop by two per cent.
“The FAGs funding has always been done by a formula which looks at a council’s ability to raise revenue and the cost challenges you have,” Mr Hoffman said.
“In this review, which was the first major one for a decade, it looked closely at the challenges we face in remote Queensland, especially compared to our coastal counterparts.
“Our costs are higher due to our location and we think the review has come up with a fairer formula.”
Mr Hoffman said the funding was mostly used for staff and pro-viding essential services, complemented by revenue from rates.
“This is so valuable because it’s untied to any project. Some councils will use the FAGs funding for capital works and projects within their shires,” he said.
“The FAGs funding is guaranteed revenue which keeps the doors open for a lot of councils.”
Richmond Shire CEO Peter Bennett said his council’s FAGs funding had increased from $3.8 million to $5.1 million as a result of the review.
“It means we are in a much better position to be financially stable,” he said.
“We still have a shortfall of about $3.8 million and we fill that gap through contract roadworks for the Department of Main Roads and Transport, as well as applying for other grants.
“This is actually a bit of a lean year for Main Roads contracts so we’re also looking at potentially providing roadworks services for mines and in other council areas.
“We are federally certified to do roadworks, one of just a handful of shires in the country.”
Funding increases
- Boulia: 45% to $4.8 million
- Burke: 44% to $4.7 million
- Carpentaria: 25% to $7.1 million
- Cloncurry: 24% to $7.3 million
- Doomadgee: 46% to $2.5 million
- Etheridge: 10% to $6.8 million
- Flinders: 9% to $8.6 million
- McKinlay: 15% to $6.7 million
- Mount Isa: 12% to $8.1 million
- Richmond: 34% to $5.1 million
This article appeared in North West Weekly, 25 August 2022.
