Speaker and Denison Liberal MP Sue Hickey wants the state government to urgently lend $5 million to the Glenorchy City Council.
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Ms Hickey said on Monday night that she had written to the Premier and Treasurer, seeking the loan after extensive discussions with Glenorchy Mayor Kristie Johnson about the council’s “dire financial position.”
“This loan will allow the newly elected council to repair the financial integrity of the City’s finances, whilst at the same time keeping rate rises to a level that people can afford,” Ms Hickey said.
“The loan for $5m should be for 10 years and repayments would only start in the 2019-20 financial year.
“The loan should be interest free.”
Ms Hickey said Glenorchy had a much higher proportion of people who were homeowners, but living on fixed incomes and Centrelink benefits, than other municipalities
She said they simply cannot afford rate rises over the CPI.
“The impact of very large rate rises of 19% would be devastating to their ability to maintain their standard of living,” Ms Hickey said.
“The ability of the City of Glenorchy to recover from the financial disaster recognised in the Board of Enquiry report is very limited.
“I have sought this loan from the Government so that the City of Glenorchy can recover and focus on delivery of essential services to ratepayers, which the previous Council seemed to have forgotten about.
“I look forward to further discussions with the Premier and Treasurer in regard to this support for the recovery of the City from its present disastrous financial position.
“I will also be asking for the costs of the Board of Enquiry to be met by the Government and not the ratepayers given the inordinate length of time and expense involved.”
The council will set its rates at a meeting in June.
Ms Hickey’s partner Peter Bull was elected to the Glenorchy City Council at the elections held this year.
Alderman Bull was elected on the Mayor’s ticket.