Bundaberg Regional Council plans to cut 70 jobs

A major regional Qld council is planning to slash 10 percent of its workforce in an effort to save millions of dollars from its bottom line and stave off a monster rate rise in the future.

Almost 10 per cent of Bundaberg Regional Council’s 800-strong workforce is expected to be cut as the organization continues to face budget shortfalls of several million dollars. (Mayor Helen Blackburn inset)

Almost 10 per cent of Bundaberg Regional Council’s 800-strong workforce is expected to be cut as the organisation continues to face budget shortfalls of several million dollars.

About 70 jobs are reportedly on the chopping block at the organisation, with the Services Union revealing the looming cuts are expected to primarily come from the council’s “non-front facing, white-collar workforce”.

In a media release on the cuts, Services Union Local Government Lead Tom Rivers said the job losses were part of a “huge restructure” planned at the organisation.

“The council are proposing to reduce employee numbers by 70,” Mr Rivers said.

“The council informed unions that with current vacancies included in that figure, this would mean that the council are looking at around 45 redundancies.”

Some of the cuts would be in positions already vacant.

In a council media release Mayor Helen Blackburn said the council was still facing an operating deficit of $14.9 million. This was down from a $17 million deficit originally revealed shortly after Ms Blackburn was elected in March, but “still $9 million more than expected”.

The council’s 2022-23 annual report said the council employed the full-time equivalent of 867 workers.

The planned cuts come in the wake of a 4.89 per cent rate rise handed to the region’s homeowners in July.

Mr Rivers said the cuts fell at the feet of “poor financial decisions …, including rate freezes and discounted rates over the last few years”.

“What this could lead to is a reduction in services for the wider community and a significant additional workload on those employees that choose to stay or don’t get the redundancy that they want,” Mr Rivers said.

The council’s CEO Rob Williams said Monday the organisation was in the “planning” stages of making changes to its operational costs.

It was not yet known exactly how many jobs would be affected, Mr Williams said.

“This will be a multi-faceted approach that will include finding efficiencies in non-capital projects, payroll, major projects and wherever else possible,” he said.

“ Removing existing vacancies and voluntary redundancies forms part of this process.”

The council’s failing financial situation was highlighted by Ms Blackburn on Friday.

In a council media release she said the council was still facing an operating deficit of $14.9 million.

Department of Local Government data accompanying a Bundaberg Regional Council media release on the organisation’s financial state said the amount of the council’s operating budget spent on staff was well above neighbouring councils.

This was down from a $17 million deficit originally revealed shortly after Ms Blackburn was elected in March, but “still $9 million more than expected”.

“It’s the highest deficit since 2009,” Ms Blackburn said.

“Unfortunately too much of (the) council’s spending is baked in and much more work needs to be done to make permanent savings for the long term and provide efficiencies to ratepayers.”

She said the council’s cash reserves were vanishing “at an alarming rate”.

Queensland councils are required to have enough money in reserves to cover three months of operational costs.

Division 3 councillor Deb Keslake said in the council’s media release said the council needed to “significantly” cut its costs to avoid hitting ratepayers with a rate rise of up to 20 per cent.

Ms Blackburn said continuing with its high spending policies had the council on track to sink below this level “within two to three years”.

Councillor Deb Keslake said in the release without the cuts ratepayers would be facing a large rate rise.

“The last thing the community needs in the middle of a cost of living crisis is a 20 per cent rate rise,” Ms Keslake said.

“The only way to avoid that is to significantly reduce council costs and live within our means.”

Department of Local Government data accompanying the release said the amount of the council’s operating budget spent on staff was well above neighbouring councils.

It says 39 per cent of the Bundaberg council’s budget was spent on salaries, compared to 34.9 per cent at the Fraser Coast Regional Council, 35 per cent at Gympie Regional Council, and 32.7 per cent at Gladstone Regional Council.

Mr Rivers declined to comment further.

The Bundaberg council and Ms Blackburn have also been contacted.