Harden Shire Council and Young Shire Council Financial Position
Reverend the Hon. Dr GORDON MOYES: I address my question without notice to the Minister for Local Government. Is the Minister aware that Harden Shire Council and Young Shire Council are listed on the Department of Local Government’s financial watch list? Is the Minister aware that those shire councils have never been informed that they are on the financial watch list? By what criteria are councils placed on the financial watch list? Will the Minister please explain why Harden and Young shire councils are on the financial watch list when their annual reports, of which I have copies, show that those councils are financially sound, both having shown a positive surplus in 2003?
The Hon. TONY KELLY: During 2002-03 the Department of Local Government prepared a list of 30 councils whose financial position at 30 June 2002 indicated that they were experiencing a form of financial difficulty. The department is now reviewing the 2002-03 financial reports for all councils and will shortly update that list. I have instructed the department to closely monitor the performance of councils in financial difficulties and to keep me informed of their progress. If progress is not forthcoming, I will not hesitate to take appropriate action. Some councils are on the list not only because they are financially destitute but because they are not complying with the Local Government Act or accounting procedures. Councils could be on that list for a whole host of reasons, and I do not know those reasons are so far as Harden and Young councils are concerned.
Reverend the Hon. Dr GORDON MOYES: I ask a supplementary question. Will the Minister explain how shire councils can be taken off the watch list?
The Hon. TONY KELLY: The watch lists are constantly reviewed. As I said, I have asked the department to review the financial reports for all councils. In fact, a few councillors have visited me, and have made appointments with departmental officers for this purpose, to go through their problems. A number of councils are working towards getting off the list. The department’s annual report for last year refers to the reports of the councils for the previous year, a matter that sometimes complicates the issue.
