Legislative Council Wednesday 11 July, 2018

Ms  FORREST question  to LEADER of the GOVERNMENT in the LEGISLATIVE COUNCIL, Mrs HISCUTT

(1)  Regarding a recent media release by Regional Express that the King Island Council claims King Island Airport is making a $470 000 loss on airport operations, does the Treasurer and Minister for Local Government have any concerns regarding the council's financial management?

(2)  Has the Treasurer initiated any discussions with the King Island Council regarding the claims made by Regional Express last week?  If not, in light of the serious allegations made by Regional Express, would the Treasurer and minister investigate these claims?

ANSWER 

Mr President, I thank the member for Murchison for her question. 

(1)  The King Island Council endorsed its 2018-19 budget at its 26 June 2018 meeting.  The budget includes a planned underlying deficit of $703 000 which the council attributes to significant one-off regulatory compliance costs in 2018-19 that relate to its airport, quarry and waste management operations.  The council's new general manager, Mr Troy Brice, is leading a review of key strategic council documents to ensure the council is compliant with all relevant regulatory and financial management requirements.  Mr Brice was appointed general manager in April 2018 following a period of acting general manager arrangements at the council.  Mr Brice has advised the council will have a long-term financial management plan in place by October 2018 and a new 10-year strategic plan completed by November 2018.  The minister is confident the council is managing its affairs appropriately.

(2)  Yes, the Treasurer has spoken directly with the mayor and the council, and the council will be providing further information on this matter.