Uncertainty behind who benefits from $2m Mount Isa Rodeo bailout
A political battle between politicians, locals and the administrator is being held over the future of Mount Isa Rodeo, and on who will directly benefit from a $2m state funded bailout.
News
Don't miss out on the headlines from News. Followed categories will be added to My News.
Concerns have been levelled over who will benefit from the $2m state funded bailout to save the Mount Isa Rodeo, which has directly been given to the local council.
Even as Tourism Minister Andrew Powell announced funds would be directed to the Mount Isa City Council to restore the rodeo at a grassroots level, he also expressed concerns about fluctuating debt figures being reported to him.
In October the biggest rodeo in the Southern Hemisphere was placed into voluntary administration after running for 65 years, and administrator SV Partners began working to recover debts of $1.9m for creditors.
While the State Government has intervened, there are concerns the funds are being redirected from a $20m transitional fund being used to increase the city’s economic resilience once Glencore lays off 1200 copper mine workers from mid next year.
The Mount Isa Regional Council aimed to give half the bailout to the creditors owed.
The rodeo’s former ambassador Tony ‘Tonka’ Toholke blasted the former rodeo board’s decision making that led to insolvency, the creditors that allowed themselves to be put in debt with at least one owed more than $100,000, and the administrator’s handling of the issue.
“I did throw my hand up to be part of the new board, but the way that it’s travelled, I’ve pulled, withdrawn, any support for it,” Mr Toholke said.
“The more this goes on it’s going to be harder to organise the event.”
Mr Toholke was referring to the next rodeo tentatively set to be held in August, but given that there would be a creditors’ meeting in January he was concerned there would not be enough time to ready the contractors and competitors.
“Are you going to have a successful event if you don’t get off your ass and do something?” he said.
Mount Isa historian Kim-Maree Burton had apprehensions about a government funding a sporting event of such significance to the community, believing it could then set the terms of its operations.
But she backed the push for a locally driven rodeo, believing the event lost touch after it moved from Kalkadoon Park to the more centrally located Buchanan Park.
“Let the community be a little bit humble and start basically from scratch again,” Ms Burton said.
“Do the basics well and build on the sport of rodeo as we did in the early days of Kalkadoon Park.
Administrator from SV Partners Michael Brennan said he had been directed by creditors to seek an explanation as to why the Mount Isa City Council received the $2m, when it was the administrators that had lobbied for it.
This lobbying began early last month when financial investigations were continuing and when it was uncertain the rodeo remained viable.
Mr Brennan accused the council of taking the credit for the funding, comparing it to “commercial cattle duffing on a grand scale”.
“I need the council to finally start being open and honest with creditors and their community about whether they want to support the Rodeo or try to steal it off the people that have paid for it – the creditors,” he said.
“Creditors do not trust the Council and will not support any rodeo if the council continues to treat them with contempt.
“Without the goods and services supplied by creditors, there will be no rodeo and the whole community suffers.”
He said he would also pursue debt on behalf of creditors if a “phoenix company” was used to create another rodeo.
Mount Isa Mayor Peta MacRae said she previously wrote to the Minister seeking $1m, a figure supplied to her by Mr Brennan.
But she was critical of the administrator’s approach to pursuing debt.
“We are Mount Isa, he doesn’t own the concept of a rodeo and he doesn’t own the weekend,” Ms MacRae said.
She said the solution to the rodeo’s future, and payment to creditors was not her decision or even the administrator’s.
“It’s the creditors’ decision, they need to come together and decide whether they’re going to be accepting this offer,” Ms MacRae said.
“But my advice to them, take the million dollars and move on, and let’s just get this happening as quickly as we can and wind this up.”
State MP Robbie Katter was also concerned with the direction the administrator had taken, and disagreed with saving the former rodeo board in its current incorporated form.
“I’d much rather the council get their money on their hands than the administrator because who knows what will be left, there will only be pocket change left after the administrator ripped through it with their bill,” Mr Katter said.
Mr Powell said in the first weeks of being a minister he had been informed the debt owed to creditors was set at about $1m.
“We heard loud and clear that the community felt, I guess, disenfranchised from where the rodeo got to, and wanted to have some of that community buy in again,” Mr Powell said during a visit to Mount Isa on Wednesday.
“For the rodeo to be successful moving forward it has to have that connection to Mount Isa.”
More Coverage
Originally published as Uncertainty behind who benefits from $2m Mount Isa Rodeo bailout
Crikey! Sleeping python takes over kids’ playground
It looks like the wet weather is getting to everyone after a massive python was spotted drying out on a children’s playground in North Queensland.
Goose killed in hit and run by Hilux driver
Pet rescue volunteers are outraged after witnessing what they believe was a driver deliberating running down a goose which died in their arms.