2 days ago
Local government minister warns Shire of Coolgardie not to treat ratepayers as 'cash cows'
Western Australia's local government minister has criticised an outback shire's bid to hike mining rates by 97 per cent saying ratepayers should not be treated as "cash cows".
The cash-strapped Shire of Coolgardie, 500 kilometres east of Perth in WA's Goldfields, proposed the rates increase despite strong opposition from the local mining sector.
This has now been refused by the state government.
In a statement Local Government Minister Hannah Beazley said the shire needed to be held accountable for its "dire financial situation".
"The decision was made in the best interests of the community and state, as well as addressing concerns expressed by impacted ratepayers," she said.
Ms Beazley said the size of the proposed rates increase "did not meet the values of consistency, equity and fairness".
In a written statement Coolgardie shire president Malcolm Cullen said the government's decision was "disappointing".
"While it may have looked ambitious in its scope the motivation was always to restore and future-proof infrastructure for the benefit of the mining sector," he said.
"In light of this decision the shire will now implement its alternative budget strategy."
He said a number of key infrastructure projects, including road upgrades, would now need to be deferred.
Mr Cullen declined the ABC's request for an interview.
He said the shire, which faces a budget deficit of $6.5 million, would work towards a "sustainable solution" for ratepayers.
Multiple mining operators had warned the shire about the potential impact of the proposed rates hike.
Wyloo Metals, owned by WA mining magnate Andrew Forrest, said its rates bill would have increased from $725,471 to $1.74 million.
ASX-listed company WIN Metals said its bill would jump from $299,000 to more than half a million dollars annually.
Speaking to the ABC, Eastern Goldfields Prospectors Association president Cranston Edwards welcomed the government's decision but said the shire's "underlying issues" needed to be addressed.
"I think it sends a message that you can't keep hitting the ratepayers," he said.
Mr Edwards said the shire needed more scrutiny and called on the councillors to resign.
"Just like any other company would do if they go broke, they've got to face the music," he said.
The Western Australian Local Government Association has been contacted for comment.
