Douglas Shire Council records $2.2m deficit in annual report

A Far North mayor has revealed a controversial purchase “was not the perfect result” after his council revealed its pandemic-induced budget deficit.

DOUGLAS Shire Mayor Michael Kerr has revealed the purchase of the Daintree River ferry “was not the perfect result we were looking for” with council recording a $2.2m deficit in this year’s annual report.

Council acquired the Daintree River vessel for $4.5m from Sirron Enterprises Pty Ltd in May, almost four times the independent valuation of the cable ferry, with Cr Kerr adamant it was the better option for the long term future of the region.

The contract with the former operator was due to expire in June.

Cairns Regional Council mayor Bob Manning and Douglas Shire Council mayor Michael Kerr. Picture: Brendan Radke

Despite posting the multimillion shortfall, the Far North council significantly outperformed the dire pandemic-influenced budget deficit forecast of $3.66m.

“We still managed to get a record amount of capital works completed this year, so we still had a very successful year in that respect considering all the challenges,” he said.

“With Covid and all the issues we had with staff having to work from home over that period, I think we have done really well.

“I’ll be the first to admit the (ferry) decision was not the perfect result we were looking for, but it was financially sound, and it protected our community from significant financial damage.”

Cairns-based reef operator Divers Den have been operating the ferry service since July 1.

Council completed its biggest ever suite of capital works initiatives, committing more than $29.4m into the market and finishing 107 projects.

Douglas Shire Council purchased the Daintree River ferry in May.

Cr Kerr said he was “absolutely positive” the next 12 months would be a boon for the destination with southern visitors expected to arrive from December 17, although it won’t be without challenges.

He said a lack of hospitality staff and affordable accommodation in Port Douglas would create a “rocky road” at times.

“I think we will start seeing a real shift in the town, people are looking forward to being able to travel again and quite a few people from down south will be coming up here,” he said.

“I believe we will have quite an extended and busy season next year.

“But it is still going to be a rocky road, I don’t think it will be smooth sailing by any means with all the little challenges that we could face along the way.

“We have some issues as far as staffing and housing go, and we are going into what could be a volatile cyclone season, but we will meet all these challenges head on.”

Originally published as Douglas Shire Council records $2.2m deficit in annual report