WA Local Government Minister, Hannah Beazley, has announced her decision not to suspend the Coolgardie Shire Council.
The decision follows a show cause notice issued to the Shire in late August that outlined the Government’s serious concerns regarding the Shire’s financial management and governance.
Under section 8.15B of the Local Government Act 1995, the Shire was required to provide the Minister with a written response outlining why the council should not be suspended.
The Minister said the decision not to suspend the council was made following careful consideration of the information provided in the Shire’s response.
The response outlined the council is working with the Shire’s administration on its financial management and strategic planning.
She said the council had made some initial effort to address the substantial financial challenges facing the Shire.
“While I have decided not to suspend the Shire council, I am concerned that significant risks remain regarding the Shire’s ongoing financial position,” said Ms Beazley.
“Given these risks, I have set clear expectations for the Shire to report on its progress, and have asked the Department of Local Government, Industry Regulation and Safety to closely monitor the Shire moving forward.
“It is deeply disappointing that it has taken substantial State Government intervention to get the council to be accountable and to start to address the serious financial situation that the council’s poor financial oversight and decision-making has placed them in.
“I will give the Shire up to 12 months to get its house in order and will be paying close attention to its financial position over that time.
“The priority is to ensure that the council provides stable and effective governance that delivers the necessary services for the Coolgardie community.”
The Minister says she has set clear expectations for the Shire to support the rebuilding of its financial position.
These include that all council members complete financial management training and that the Shire provides regular updates to the Department of Local Government, Industry Regulation and Safety on the implementation of the Financial Recovery Plan and its Long-Term Financial Plan.
The Shire’s financial position will be continually assessed over the next 12 months, she said.
