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Auditor's report a warning sign for governments

News Release

Tuesday, 11 October 2016

Auditor's report a warning sign for governments

Today’s report by the Queensland Auditor’s Office on long term financial sustainability for local councils serves as a reminder to state and federal governments about the mounting challenges the local government sector faces due to rising costs and dwindling funding support.
 
Local Government Association of Queensland Acting President Jenny Hill said the difficult job of managing and maintaining community assets is being made much harder due to reduced funding for infrastructure and increased workforce costs due to more and more regulation.
 
Cr Hill said the LGAQ accepted the report’s findings and was working with councils on several fronts to improve their asset management capacity and ensure their financial sustainability was on a firm footing.
 
“With our help, councils are improving their practices around asset management and introducing strategies to ensure better financial outcomes,’’ she said.
 
“But both the state and federal governments need to acknowledge that reducing grants and subsidies to councils has driven up rates and charges.
 
“Driving up their costs in other areas like compliance is bound to affect the ability of local governments to maintain a consistent record on financial management."
 
“Councils need support in maintaining and renewing assets, rather than funding of new capital.”
 

Local Government Association of Queensland
LG House, 25 Evelyn Street, Newstead Qld 4006


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