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HomeNewsCostly break-up

Costly break-up

By JONATHON HOWARD

A CLOUD of financial questions is gathering over Noosa Council, as residents seek clarification around the total cost of de-amalgamation and greater certainty for Noosa’s financial future.
During the past week Noosa residents have switched their focus from the zero rate rise success story of the 2014-’15 Noosa budget, to questions around a request for $20 million from the Sunshine Coast Council.
Noosa Council last week called on the Sunshine Coast Council to approve a further $20 million cash transfer.
Noosa Council claims it has unfinished business with Sunshine Coast Council in regards to determining how the joint assets and liabilities of the former regional council were split.
The matter has now been referred to the Minister for Local Government David Crisafulli, who Noosa Council said would act as the umpire after Sunshine Coast Council Mayor Mark Jamieson slammed the move.
Speaking with local media sources, Mayor Jamieson said the Sunshine Coast Council had already handed over $40 million since de-amalgamation under advice from the Queensland Treasury Corporation.
Mayor Jamieson now believes the regional council owes just $582,000 to Noosa Council.
Mr Jamieson said Noosa Council’s bid for the $20 million was “contrary to the Transfer Committee’s agreed process” and he has urged Sunshine Coast MPs to block the request.
Before de-amalgamation, Local Government Minister David Crisafulli and Queensland Treasury Corporation warned the split would cost more than $13 million.
However, when Noosa won the vote and de-amalgamated, Mayor Noel Playford said the new council’s cost-cutting measures would reduce that figure to just $2.23 million.
In a media statement, Noosa Council said it had detailed some facts on the progress of the transfer from the former regional council into the two separate councils of the Sunshine Coast and Noosa.
“The State Government established a process last year to determine how the joint assets and liabilities of the former regional council were to be split,” the statement read.
“Assets included funds contributed jointly by the people of the Sunshine Coast, including the Noosa community.
“The Transfer Committee, consisting of the CEOs of both Noosa and Sunshine Coast councils, had agreed on most issues by the time the committee was wound up on June 30 this year. However, eight issues were not agreed.
“Of these, three were referred to Mr Crisafulli earlier this year and decided some time ago.
Five technical accounting issues remain to be decided by the Minister.”
Noosa Council Mayor Noel Playford said the minister would take appropriate advice, and council would abide by what was properly decided under this agreed process.
“Noosa Council will continue to act in good faith; not by putting pressure on State Government MPs, not by pre-empting the process, not through the media, and not by spreading misinformation,” Mr Playford said.

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