1. thesundaymail.com.au
thesundaymail.com.au SPECIAL INVESTIGATION NEWS 9
Mergers under fire
as rates, debt soar
Rising bills Councils hit
mean extra
work shifts credit limits
Kelmeny Fraser
RISING rates and fees have forced GROWING
Simmone Miszuk to take on extra RATES have jumped by up to PAINS
shifts at work. 30 per cent since Queens-
Both Simmone and husband land’s controversial council ■ Rate rises of up to 30%
Walter work, but with two primary amalgamations, defying prom- since mergers
school-aged children, Mrs Miszuk ises of cost savings.
said she had been forced to take on And debt has leapt to record ■ Water bills jumped up to
an extra shift to make ends meet. levels, with struggling councils 40% in one year in
The couple, who live in Margate approaching their maximum southeast
in the Moreton Bay Regional credit limit three years after
Council area north of Brisbane, pay the State Government pushed ■ Council debt tripled in four
$1200 a month in mortgage through its controversial years – to hit $6 billion by
repayments, $300 a month on council reforms against wide- 2012
school fees for Alek, 6, and Lily, 8, spread community opposition.
and $325 a quarter just on their While some mayors said
water bills. benefits had emerged, rate- Financial documents for a
The Miszuk family had an payers have complained sky- dozen merged councils show
annual rates bill of $1729 in rocketing rates and fees, they have become mired in
2007-08. Their total bill for this mounting debt and staff blow- debt since the amalgamation,
financial year, including water, will outs paint a different picture. with an average debt per
come to $2651.60 – mostly driven It comes amid a war of capita of $1153. Borrowings by
by increases in water and sewerage. words over whether the Bligh the 12 merged councils rose
Mrs Miszuk said rising rates bills Government’s plans to dis- from about $880 million be-
had added to the rising living costs, mantle the southeast’s water fore the amalgamations to
forcing her to ‘‘scrimp and scrape’’ distribution system will cap $1.7 billion this financial year.
to afford the basics. steep water price rises. Townsville City Council
‘‘It is quite a lot extra you have to Natural Resources Minister loans soared by more than
find and we have had mortgage Stephen Robertson said estab- $200 million since 2008 to
increases as well,’’ she said. lishing the retailers had cost $390 million – more than
‘‘We still want to do school $80 million, and he did not $2000 of debt per person.
holidays and have a lifestyle as believe it would be as expens- Local Government Associ-
well, so to do that and pay all the ive to dissemble. ation of Queensland executive
extra rates I have had to pick up an But councils estimate scrap- director Greg Hallam said
extra day’s work.’’ ping the three retailers and councils would soon be forced
Mrs Miszuk’s mother Pauline returning water to councils to stop borrowing and ration
McDonnell, 72, who also lives at could cost at least $300 mil- spending as they grew close to
Margate, is refusing to pay the lion. reaching their credit limits. He
increase in sewerage and water Councils have reached bor- blamed population growth and
fees. rowing limits, with loan repay- the need to upgrade infra-
Doing it tough: Simmone Miszuk, ments expected to chew-up structure in areas neglected by
with children Alek, 6, and Lily, 8, and about 30 per cent of their councils over past decades for
mother Pauline has had to take on revenue. Council debt will driving up debt.
extra shifts to make ends meet. have tripled from $2 billion to
$6 billion by June next year, Council rates comparison
hitting $8.5 billion by 2014. P10-11
Je
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