Cash-strapped councils tell inquiry of soaring infrastructure cost woes

A federal parliamentary inquiry has heard from Queensland councils are struggling to pay for infrastructure as the state’s population growth surges.

Logan City Council mayor Jon Raven addressed a federal parliamentary inquiry into the sustainability of local government held in Beaudesert on Friday, October 18.

Logan City Mayor Jon Raven has called for urgent federal and state government support to address infrastructure challenges facing local councils during a federal inquiry on local government sustainability.

The inquiry, run by the Standing Committee on Regional Development, Infrastructure, and Transport, aims to examine how councils across Australia are grappling with increased responsibilities while lacking the necessary financial resources.

Along with the Logan council, Banana, Scenic Rim, Brisbane, Toowoomba, North Burnett and the Western Queensland Alliance of Councils made submissions to Friday’s hearing, chaired by Northern Territory MP Luke Gosling at Beaudesert.

Speaking at the inquiry, Cr Raven said councils were struggling under the growing strain on infrastructure due to rapid population growth and rising construction costs.

The Logan mayor said the council’s infrastructure costs had soared with construction costs rising by as much as 35 per cent in recent years.

The state government’s push for “out-of-sequence” developments such as the Priority Development Areas of Yarrabilba and Greater Flagstone in Logan, were also blamed for adding to councils’ costs with developers only meeting 40 per cent of infrastructure costs.

Yarrabilba in Logan is one of the state government’s Priority Development Areas which is ‘out of sequence’. Picture: LOED

“Local government is really struggling to deliver the infrastructure needed for more houses during this housing crisis,” he said.

“If other levels of government don’t start to help, we’re going to have to stop building the roads, water, and treatment plants that people need if they want to keep building homes.

“We’re facing a 22 per cent increase in electricity costs, nearly 20 per cent in landscaping, and a staggering 35 per cent increase in insurance.

“Yet, we’ve only raised rates by 4.6 per cent — about $120 per year for the average household. That’s not enough to keep up.

“We have an obligation to build infrastructure that connects these (out-of-sequence) developments to the main part of our city, which is the most expensive way to deliver infrastructure.”

Logan’s submission included six recommendations including reinstating the Financial Assistance Grant to at least 1 per cent of federal taxation revenue to help councils manage unforeseen costs and create more certainty in budgeting.

Councils say they are being crippled by the burden of soaring infrastructure costs to keep pace with the population boom. Picture: Logan City Council

Another recommendation was for cost-sharing funding between federal, state, and local governments to help manage and eradicate the ongoing threat posed by Red Imported Fire Ants.

Adjusting state government waste management payment schedules to prevent unnecessary financial strain on ratepayers was also recommended along with a legislative review of housing infrastructure funding, to align with the National Housing Accord 2022.

The Logan submission also called for more flexible industrial policies to allow councils to attract and retain skilled workers.

Inquiry chair Mr Gosling said the committee would examine labour hire and retention trends and opportunities to support local government sustainability and service delivery.

Findings are expected to be handed down early next year.