State Government rejects Isis de-amalgamation bid

UPDATE: Former Isis mayor Bill Trevor "gutted" by State Government refusal of de-amalgamation bid.

BID REJECTED: Former Isis mayor Bill Trevor has responded to the State Government's refusal to allow Isis to de-amalgamate from Bundaberg Regional Council. Picture: Scott Thompson

UPDATE: AS THE smallest shire of the five to pursue de-amalgamation, the Isis was told they will remain a part of the Bundaberg Regional Council and continue their scramble for resources into the future.

The $6,791,000 cost in the first year to de-amalgamate, estimated by the Queensland Treasury Corp (QTC), was deemed too expensive by the Boundaries Commissioner, Col Meng, to progress the application to a referendum.

Former Isis Shire mayor Bill Trevor said he was personally, "absolutely gutted" by the outcome presented by the Boundaries Commissioner this morning.

"I'm in Brisbane on business today and haven't had a chance to go through the figures presented in the report," Mr Trevor said.

"I'm going to hold fire on commenting until I have had a chance to go through the financial justifications."

"I'm bewildered that they have presented with even higher figures than those detailed in the Bundaberg Regional Council's report."

Mr Trevor said he intended to meet with the Minister for Local Governments and the Boundaries Commissioner tomorrow morning to the discuss the outcome in detail.

"We were the smallest by a long shot, but we showed real passion," Mr Trevor said.

The Boundaries Commissioner's report said ratepayers of the proposed Isis Shire council would have to contribute a minimum increase of $1,054 in the first year and a minimum of $569 over the following four years to support the change.

Member for Burnett Stephen Bennett said the Queensland Government had thoroughly investigated the proposal but were not in favour of passing these costs on to the community.

"While a lot of people are bitterly disappointed by the outcome, the reports, including figures from the QTC and commissioner, are now public and show how expensive the changes would have been," Mr Bennett said.

EARLIER: Local government minister David Crisafulli has said expert analysis of the former Isis Shire Council's bid to split from Bundaberg Regional Council would leave the Isis area financially distressed from day one. 

Mr Crisafulli said the same financial disciplines that had been applied to the other four areas that wanted to de-amalgamate - Douglas, Mareeba, Noosa and Livingstone - clearly highlighted Isis Shire Council would not be viable and therefore would not proceed to a vote.

"While there's no doubting the community's passion, a reinstated council would be financially distressed from day one," he said.

"We have given communities every chance to have a say, including areas that would have increased costs and obvious challenges.

"But in the case of Isis, the costs would be so severe and the council so distressed I can't recommend a poll.

"This is not a reflection on those who put in the bid, or the council, but the reality is that five years after amalgamation the costs for such a small council was always going to be a challenge."

For Isis, Queensland Treasury Corporation (QTC) found the cost to de-amalgamate would be $6,791,000 or an extra $1,054 per ratepayer in the first year.

There would also be ongoing costs of an extra $569 per ratepayer in the second year, rising every year thereafter.

Boundaries Commissioner Col Meng and QTC have spent the past two months working with proponents, stakeholders and BRC to work out all of the costs involved.

The commissioner's report included:

• Wages for a mayor and councillors
• Wages for council staff
• Cost of equipment and IT
• Cost of de-amalgamation to the remaining council
• Cost of conducting a referendum
• Ongoing costs, such as annual licencing fees and insurance

Mr Crisafulli said he understood the community would be disappointed but he was determined to get some good from this.

One of Mr Meng's recommendations is for the existing BRC to move to an undivided basis at the 2016 elections to foster regional over divisional decision making; and greater emphasis on land-use planning, rates and charges, and tourism. 

"We have closely examined each proposal and know better than before what needs to be done to achieve a more representative, unified council area," Mr Crisafulli said.

"I'll be working closely with the proponents, the local member, and BRC to bring this about."

>> Queensland Boundaries Commissioner reports on each area 

More to come