Tasmanian councils have shown value and resilience amid COVID-19 pandemic but concerned about second wave, inquiry hears

Desperate councils have taken part in the State Government’s $200 million no interest loans program as they fear a second wave of COVID-19 will take them beyond the point of financial recovery. Read the latest on the inquiry >>

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CASH-strapped councils have shown resilience amid the coronavirus pandemic but they are worried about a second wave of the deadly virus, an inquiry into Tasmania’s COVID-19 response has heard.

Local Government Association of Tasmania chief executive Katrena Stephenson told the Parliamentary Joint Standing Committee of Public Accounts into the state’s financial response to coronavirus that the pandemic had created significant economic headwinds.

Katrena Stephenson, Chief Executive Officer LGAT. LGAT Annual general meeting. Picture: RICHARD JUPE

“I think overall councils showed their value and resilience throughout this COVID period, but they certainly took a hit,’’ she said.

Dr Stephenson said that left councils vulnerable to respond to further potential economic challenges and impacted the ability to deliver on capital expenditure programs.

“They have a strong level of expertise in recovery, admittedly normally in a natural disaster situation, but we have strong expertise in recovery in every council,’’ she said.

But she said councils were concerned about the potential for a second wave of COVID-19 in Tasmania and were trying to reduce operating costs where possible.

She said about 20 of the state’s councils had taken up loans as part of the State Government’s $200 million No Interest Loans Program.

Windermere MLC Ivan Dean.

In response to a question from Windermere MLC Ivan Dean about the ability of people to afford payments like rates, Dr Stephenson said relief measures adopted by councils were constantly evolving.

“I think the immediate relief measures were broad brush but some of the work LGAT did was developing hardship model policies so relief could be more targeted,’’ she said.

But Dr Stephenson said there were some learnings for councils out of the coronavirus pandemic, including digital readiness, an issue highlighted due to the need for remote meetings and social distancing.

“Some councils have been able to continue livestreaming even when they are meeting face-to-face,’’ she said.

“For others it will take some more investment ... they need good audio and cameras in the council chamber.

“Some were set up to do that, and others were not.”

The inquiry heard the need for remote working due to coronavirus restrictions had created an opportunity to review flexible working arrangements.

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