The State Government will provide $300,000 bridging finance to the Shire of Cunderdin securing the jobs of staff and provision of services.
Local Government and Regional Development Minister John Bowler said the repayable short-term loan would provide the shire with working capital until it started receiving rates for the 2005-06 financial year.
“The State Government has come to the rescue of a council with poor financial management,” Mr Bowler said.
The Department of Local Government and Regional Development and Treasury today met with the Cunderdin Shire to consider the council’s financial situation and arrived at the financial support outcome. The funding will enable the council to continue its operations, but requires further negotiations surrounding the restructure of existing finances with WA Treasury Corp.
Mr Bowler said the Cunderdin Shire Council had made a range of decisions over a period of time that had resulted in a bad financial situation.
“The council has looked to capitalise on several situations including the ownership of the hotel and support of the airshow, but they have not provided the outcomes as hoped.
“The position of the Cunderdin Shire highlights some of the social and economic sustainability issues faced by small local governments that do not have the financial ability to handle negative outcomes.
“While the resolution provides short-term aid to the shire, it is highly undesirable for any council to require such assistance.
“It is one of the reasons that with the department, I will be looking to strengthen the auditing process of local government to help prevent other councils can end up in this situation,” Mr Bowler said.
Minister's office: 9213 6500