Opinion: Urgent action needed on existential threat to local councils

One-third of local governments in Queensland are now at high risk of becoming financially unsustainable – and I don’t know why no one is talking about it, writes Rachel Chambers.

Growing up in Brisbane I never dreamt that I would one day be forced to regard having access to adequate road maintenance, drinking water, recycling, sewerage and community swimming pools as a luxury.

Yet last week, as mayor, I stood in front of my community, and shared the shocking news that due to the uncertainty of future funding, their council must consider restricting service delivery with such severity that all these essential services would be affected.

Imagine that, essential services which are only essential if you have the money within a geographic boundary to regard them as such. This is not the Queensland we want.

One-third of local governments in Queensland are now at high risk of becoming financially unsustainable.

And I don’t know why no one is talking about it.

Well no one, except everyone in local government, and many parliamentary reports and papers dating back more than a decade. Given local governments’ role as the foundation on which all communities are built, the fact so many of these foundations are unstable, and crumbling, should sound deafening alarm bells at 1 William St.

Right now, local government is concerned. State and federal governments have heavily relied on borrowings, to stimulate the Queensland and Australian economies. The grants which so many councils rely on are at risk. Councils have already been told to consider how to continue providing essential services in a “cost-affordable manner” and are bracing themselves for more uncertainty to come.

But recent data tells a different story – the exact opposite is needed, and more funding secured as a vital piece of the local government puzzle.

The ability of local governments in Queensland to source their own revenue is vastly different based on location, population size, rate base and the ability to levy user charges. On the surface, spending less than you earn is a sound financial approach. Dig a bit deeper and this unrealistic and unfair demand on some Queensland communities begins to unravel.

The system of financial sustainability as it stands draws a “line” around a geographic area (council) and implies a closed system where ratepayers must pay for the assets and services within this ‘area’. The folly in this, lies in the fact that as Queenslanders we all use each other’s infrastructure and even let people from other states, territories and countries use it on occasion.

When the ratepayers of a “geographic area” are unable to afford to maintain the shared assets within this “council area” alone, they are expected to cut costs by reducing maintenance and lowering service levels. This results in job losses and loss of liveability.

For councils like the North Burnett, just three hours northwest of Brisbane CBD, it’s more like hiking barefoot up Everest, with the hopes and dreams of the community on your back.

With over a billion dollars in assets (including the 12th longest road network in Australian councils) and only 6287 ratepayers the ability for this council to fund its own way has never been an option and will never be an option unless of course, the community can live without roads and water. As Queenslanders living in 2021, our expectations are similar regardless of our home address. The difference is, as Queenslanders our home address dictates the level of services provided. The system is broken. And there’s work to do on all sides. The future of Queenslanders depends on it.

Councils have work to do, to get their long-term planning and asset management in order. I have confidence the sector can do that.

State Government must harness a better understanding and appreciation of the work councils do on behalf of Queenslanders.

And the Federal Government must learn how to share the “common wealth” starting with restoring federal assistance grants to 1 per cent.

In this era of “buy now, pay later” and instant gratification, communities also have a role to play.

The gap between community expectations and governments’ ability to deliver them is ever widening.

It’s time to shine a light on these challenges, not leave them, and Queenslanders, in the dark.

Rachel Chambers is the Mayor of North Burnett Regional Council

Originally published as Opinion: Urgent action needed on existential threat to local councils