Article: Brisbane City Council fury as Treasurer stalls on cash

[ozbob]

From the Courier Mail click here!

Brisbane City Council fury as Treasurer stalls on cash

Brisbane City Council fury as Treasurer stalls on cash
Article from: The Courier-Mail

Bruce McMahon

March 09, 2009 11:00pm

BRISBANE'S $2.8 billion budget and infrastructure plans could be in jeopardy as Queensland Treasury is unable to commit to major council borrowings past next financial year.
At risk are Brisbane City Council's $1.2 billion Road Action Program, $100 million for public transport infrastructure plus $117 million for bikeways and six new CityCats.

And Lord Mayor Campbell Newman's plan to go the private sector for alternative council funding was yesterday stalled by State Treasurer Andrew Fraser.

Mr Fraser told Cr Newman that under the Statutory Bodies Financial Arrangements Act he could not provide "in-principle" approval as requested. If BCC wanted to enter a specific financial arrangement that could be considered.

"There are thousands of jobs and billions of dollars of infrastructure projects hanging in the balance across every council in southeast Queensland, including Brisbane, and the Treasurer is ducking the issue," Cr Newman said.

"If the State Government does not have the money - which clearly it does not - they should let us go to the private sector banks. Councils and government-owned corporations have only a few weeks to produce budgets.

"We have to sign contracts for over 63 road projects in Brisbane alone and it is disappointing the Treasurer took a week to tell us nothing."

Last night, Mr Fraser said Queensland raised finance year on year.

"Predictions beyond the next two years are very difficult given credit market dysfunction," he said. "As I have communicated to Brisbane City Council, if they come forward with a proposal I am able to consider it under the Act."

Cr Newman wrote to Queensland Treasury Corporation's chief executive Stephen Rochester in February outlining concerns about the ability of QTC to finance his promised infrastructure program.

In reply, Mr Rochester assured BCC that $450 million for Clem7 and $154 million for the Hale Street Link were covered.

But he added: "At this point in time, QTC is not able to provide this same level of commitment to fund BCC's borrowing requirements beyond FY2009-10"

Cr Newman wrote to Mr Fraser last week seeking approval in principle to obtain alternative funding.

Local Government Association of Queensland chief executive Greg Hallam remains optimistic about infrastructure funding after consulting with QTC's chief executive.

"In light of the current economic crisis we're as comfortable as we can be with the assurances that we've received from QTC," Mr Hallam said.

[stephenk]

Did I just read $1.2b on roads, and just $100m for public transport? Disgusting!