❓ A parliamentary question addresses the Shire of Cunderdin's financial difficulties, the government's response, and a loan for an Ettamogah hotel franchise. The response details timelines, actions taken, and legislative frameworks governing loan approvals.
AnsweredQoN 430Legislative Council
QuestionView source ↗
I refer to the recent exposure of the financial difficulties being experienced by the Shire of Cunderdin. (1) When did the government become aware that the Shire of Cunderdin was experiencing financial difficulties? (2) What steps did the minister instruct the Department of Local Government and Regional Development to take to rectify the situation? (3) Did the Western Australian Treasury approve a loan application from the Shire of Cunderdin to purchase an Ettamogah hotel franchise without receiving an appropriate business plan from the shire? (4) Did Treasury provide any advice on the viability of the hotel venture? (5) If yes to (4), why did Treasury advance the loan if it believed the project was not viable? Hon JON FORD
AnswerView source ↗
I thank the member for some notice of this question. The Minister for Local Government and Regional Development has provided the following answer - (1) When the Chief Executive Officer of the Shire of Cunderdin, Mr Michael Keeble, met with officers of the Department of Local Government and Regional Development on 19 April 2005 to discuss the current financial problems of the shire, the DLGRD was invited to conduct a financial health check of the shire on 20 April 2005 by the shire president. The DLGRD undertook this as a high priority. (2) The minister did not instruct DLGRD to rectify the situation. However, the DLGRD prepared a report on the financial situation of the shire for the council’s consideration. The minister was kept informed of progress on the matter. The minister met with council members and affirmed the need for immediate action to address the issue. (3) The Local Government Act 1995 provides local authorities with the power to borrow. The application for the loan was approved by the Department of Treasury and Finance consistent with the provisions of section 6.21 of the act. This section provides for approval to be conditional upon the local authority certifying that it has met the requirements stipulated under the act. These include the requirement under section 6.20 of the act for the inclusion of borrowings in the annual budget for the financial year. Section 6.21(2) stipulates that the security of any state lending to local authorities is over the general funds of the local government; for example, rate revenue. In addition to the requirements under the act, guidelines were provided by DTF to all local authorities to assist them to comply with the requirement for the application and approval of loans. These were provided directly to all local authorities in September 2002. These guidelines stipulate that - . . . in line with the objectives of the Local Government Act 1995 , you - That is the local authority - will be fully accountable and responsible for your borrowing/re-borrowing decisions. In short, the local authority is required by both the act and the guidelines for the exercise of borrowing powers under the act to be fully accountable for its own decision making. (4) No, as under the act, the certification required by the CEO of the local authority requires the local authority to comply with the act and the DTF guidelines. (5) Not applicable.
(1) When did the government become aware that the Shire of Cunderdin was experiencing financial difficulties? (2) What steps did the minister instruct the Department of Local Government and Regional Development to take to rectify the situation? (3) Did the Western Australian Treasury approve a loan application from the Shire of Cunderdin to purchase an Ettamogah hotel franchise without receiving an appropriate business plan from the shire? (4) Did Treasury provide any advice on the viability of the hotel venture? (5) If yes to (4), why did Treasury advance the loan if it believed the project was not viable? Hon JON FORD replied: I thank the member for some notice of this question. The Minister for Local Government and Regional Development has provided the following answer - (1) When the Chief Executive Officer of the Shire of Cunderdin, Mr Michael Keeble, met with officers of the Department of Local Government and Regional Development on 19 April 2005 to discuss the current financial problems of the shire, the DLGRD was invited to conduct a financial health check of the shire on 20 April 2005 by the shire president. The DLGRD undertook this as a high priority. (2) The minister did not instruct DLGRD to rectify the situation. However, the DLGRD prepared a report on the financial situation of the shire for the council’s consideration. The minister was kept informed of progress on the matter. The minister met with council members and affirmed the need for immediate action to address the issue. (3) The Local Government Act 1995 provides local authorities with the power to borrow. The application for the loan was approved by the Department of Treasury and Finance consistent with the provisions of section 6.21 of the act. This section provides for approval to be conditional upon the local authority certifying that it has met the requirements stipulated under the act. These include the requirement under section 6.20 of the act for the inclusion of borrowings in the annual budget for the financial year. Section 6.21(2) stipulates that the security of any state lending to local authorities is over the general funds of the local government; for example, rate revenue. In addition to the requirements under the act, guidelines were provided by DTF to all local authorities to assist them to comply with the requirement for the application and approval of loans. These were provided directly to all local authorities in September 2002. These guidelines stipulate that - . . . in line with the objectives of the Local Government Act 1995 , you - That is the local authority - will be fully accountable and responsible for your borrowing/re-borrowing decisions. In short, the local authority is required by both the act and the guidelines for the exercise of borrowing powers under the act to be fully accountable for its own decision making. (4) No, as under the act, the certification required by the CEO of the local authority requires the local authority to comply with the act and the DTF guidelines. (5) Not applicable.
(2) What steps did the minister instruct the Department of Local Government and Regional Development to take to rectify the situation? (3) Did the Western Australian Treasury approve a loan application from the Shire of Cunderdin to purchase an Ettamogah hotel franchise without receiving an appropriate business plan from the shire? (4) Did Treasury provide any advice on the viability of the hotel venture? (5) If yes to (4), why did Treasury advance the loan if it believed the project was not viable? Hon JON FORD replied: I thank the member for some notice of this question. The Minister for Local Government and Regional Development has provided the following answer - (1) When the Chief Executive Officer of the Shire of Cunderdin, Mr Michael Keeble, met with officers of the Department of Local Government and Regional Development on 19 April 2005 to discuss the current financial problems of the shire, the DLGRD was invited to conduct a financial health check of the shire on 20 April 2005 by the shire president. The DLGRD undertook this as a high priority. (2) The minister did not instruct DLGRD to rectify the situation. However, the DLGRD prepared a report on the financial situation of the shire for the council’s consideration. The minister was kept informed of progress on the matter. The minister met with council members and affirmed the need for immediate action to address the issue. (3) The Local Government Act 1995 provides local authorities with the power to borrow. The application for the loan was approved by the Department of Treasury and Finance consistent with the provisions of section 6.21 of the act. This section provides for approval to be conditional upon the local authority certifying that it has met the requirements stipulated under the act. These include the requirement under section 6.20 of the act for the inclusion of borrowings in the annual budget for the financial year. Section 6.21(2) stipulates that the security of any state lending to local authorities is over the general funds of the local government; for example, rate revenue. In addition to the requirements under the act, guidelines were provided by DTF to all local authorities to assist them to comply with the requirement for the application and approval of loans. These were provided directly to all local authorities in September 2002. These guidelines stipulate that - . . . in line with the objectives of the Local Government Act 1995 , you - That is the local authority - will be fully accountable and responsible for your borrowing/re-borrowing decisions. In short, the local authority is required by both the act and the guidelines for the exercise of borrowing powers under the act to be fully accountable for its own decision making. (4) No, as under the act, the certification required by the CEO of the local authority requires the local authority to comply with the act and the DTF guidelines. (5) Not applicable.
(3) Did the Western Australian Treasury approve a loan application from the Shire of Cunderdin to purchase an Ettamogah hotel franchise without receiving an appropriate business plan from the shire? (4) Did Treasury provide any advice on the viability of the hotel venture? (5) If yes to (4), why did Treasury advance the loan if it believed the project was not viable? Hon JON FORD replied: I thank the member for some notice of this question. The Minister for Local Government and Regional Development has provided the following answer - (1) When the Chief Executive Officer of the Shire of Cunderdin, Mr Michael Keeble, met with officers of the Department of Local Government and Regional Development on 19 April 2005 to discuss the current financial problems of the shire, the DLGRD was invited to conduct a financial health check of the shire on 20 April 2005 by the shire president. The DLGRD undertook this as a high priority. (2) The minister did not instruct DLGRD to rectify the situation. However, the DLGRD prepared a report on the financial situation of the shire for the council’s consideration. The minister was kept informed of progress on the matter. The minister met with council members and affirmed the need for immediate action to address the issue. (3) The Local Government Act 1995 provides local authorities with the power to borrow. The application for the loan was approved by the Department of Treasury and Finance consistent with the provisions of section 6.21 of the act. This section provides for approval to be conditional upon the local authority certifying that it has met the requirements stipulated under the act. These include the requirement under section 6.20 of the act for the inclusion of borrowings in the annual budget for the financial year. Section 6.21(2) stipulates that the security of any state lending to local authorities is over the general funds of the local government; for example, rate revenue. In addition to the requirements under the act, guidelines were provided by DTF to all local authorities to assist them to comply with the requirement for the application and approval of loans. These were provided directly to all local authorities in September 2002. These guidelines stipulate that - . . . in line with the objectives of the Local Government Act 1995 , you - That is the local authority - will be fully accountable and responsible for your borrowing/re-borrowing decisions. In short, the local authority is required by both the act and the guidelines for the exercise of borrowing powers under the act to be fully accountable for its own decision making. (4) No, as under the act, the certification required by the CEO of the local authority requires the local authority to comply with the act and the DTF guidelines. (5) Not applicable.
(4) Did Treasury provide any advice on the viability of the hotel venture? (5) If yes to (4), why did Treasury advance the loan if it believed the project was not viable? Hon JON FORD replied: I thank the member for some notice of this question. The Minister for Local Government and Regional Development has provided the following answer - (1) When the Chief Executive Officer of the Shire of Cunderdin, Mr Michael Keeble, met with officers of the Department of Local Government and Regional Development on 19 April 2005 to discuss the current financial problems of the shire, the DLGRD was invited to conduct a financial health check of the shire on 20 April 2005 by the shire president. The DLGRD undertook this as a high priority. (2) The minister did not instruct DLGRD to rectify the situation. However, the DLGRD prepared a report on the financial situation of the shire for the council’s consideration. The minister was kept informed of progress on the matter. The minister met with council members and affirmed the need for immediate action to address the issue. (3) The Local Government Act 1995 provides local authorities with the power to borrow. The application for the loan was approved by the Department of Treasury and Finance consistent with the provisions of section 6.21 of the act. This section provides for approval to be conditional upon the local authority certifying that it has met the requirements stipulated under the act. These include the requirement under section 6.20 of the act for the inclusion of borrowings in the annual budget for the financial year. Section 6.21(2) stipulates that the security of any state lending to local authorities is over the general funds of the local government; for example, rate revenue. In addition to the requirements under the act, guidelines were provided by DTF to all local authorities to assist them to comply with the requirement for the application and approval of loans. These were provided directly to all local authorities in September 2002. These guidelines stipulate that - . . . in line with the objectives of the Local Government Act 1995 , you - That is the local authority - will be fully accountable and responsible for your borrowing/re-borrowing decisions. In short, the local authority is required by both the act and the guidelines for the exercise of borrowing powers under the act to be fully accountable for its own decision making. (4) No, as under the act, the certification required by the CEO of the local authority requires the local authority to comply with the act and the DTF guidelines. (5) Not applicable.
(5) If yes to (4), why did Treasury advance the loan if it believed the project was not viable? Hon JON FORD replied: I thank the member for some notice of this question. The Minister for Local Government and Regional Development has provided the following answer - (1) When the Chief Executive Officer of the Shire of Cunderdin, Mr Michael Keeble, met with officers of the Department of Local Government and Regional Development on 19 April 2005 to discuss the current financial problems of the shire, the DLGRD was invited to conduct a financial health check of the shire on 20 April 2005 by the shire president. The DLGRD undertook this as a high priority. (2) The minister did not instruct DLGRD to rectify the situation. However, the DLGRD prepared a report on the financial situation of the shire for the council’s consideration. The minister was kept informed of progress on the matter. The minister met with council members and affirmed the need for immediate action to address the issue. (3) The Local Government Act 1995 provides local authorities with the power to borrow. The application for the loan was approved by the Department of Treasury and Finance consistent with the provisions of section 6.21 of the act. This section provides for approval to be conditional upon the local authority certifying that it has met the requirements stipulated under the act. These include the requirement under section 6.20 of the act for the inclusion of borrowings in the annual budget for the financial year. Section 6.21(2) stipulates that the security of any state lending to local authorities is over the general funds of the local government; for example, rate revenue. In addition to the requirements under the act, guidelines were provided by DTF to all local authorities to assist them to comply with the requirement for the application and approval of loans. These were provided directly to all local authorities in September 2002. These guidelines stipulate that - . . . in line with the objectives of the Local Government Act 1995 , you - That is the local authority - will be fully accountable and responsible for your borrowing/re-borrowing decisions. In short, the local authority is required by both the act and the guidelines for the exercise of borrowing powers under the act to be fully accountable for its own decision making. (4) No, as under the act, the certification required by the CEO of the local authority requires the local authority to comply with the act and the DTF guidelines. (5) Not applicable.
Hon JON FORD replied: I thank the member for some notice of this question. The Minister for Local Government and Regional Development has provided the following answer - (1) When the Chief Executive Officer of the Shire of Cunderdin, Mr Michael Keeble, met with officers of the Department of Local Government and Regional Development on 19 April 2005 to discuss the current financial problems of the shire, the DLGRD was invited to conduct a financial health check of the shire on 20 April 2005 by the shire president. The DLGRD undertook this as a high priority. (2) The minister did not instruct DLGRD to rectify the situation. However, the DLGRD prepared a report on the financial situation of the shire for the council’s consideration. The minister was kept informed of progress on the matter. The minister met with council members and affirmed the need for immediate action to address the issue. (3) The Local Government Act 1995 provides local authorities with the power to borrow. The application for the loan was approved by the Department of Treasury and Finance consistent with the provisions of section 6.21 of the act. This section provides for approval to be conditional upon the local authority certifying that it has met the requirements stipulated under the act. These include the requirement under section 6.20 of the act for the inclusion of borrowings in the annual budget for the financial year. Section 6.21(2) stipulates that the security of any state lending to local authorities is over the general funds of the local government; for example, rate revenue. In addition to the requirements under the act, guidelines were provided by DTF to all local authorities to assist them to comply with the requirement for the application and approval of loans. These were provided directly to all local authorities in September 2002. These guidelines stipulate that - . . . in line with the objectives of the Local Government Act 1995 , you - That is the local authority - will be fully accountable and responsible for your borrowing/re-borrowing decisions. In short, the local authority is required by both the act and the guidelines for the exercise of borrowing powers under the act to be fully accountable for its own decision making. (4) No, as under the act, the certification required by the CEO of the local authority requires the local authority to comply with the act and the DTF guidelines. (5) Not applicable.
I thank the member for some notice of this question. The Minister for Local Government and Regional Development has provided the following answer - (1) When the Chief Executive Officer of the Shire of Cunderdin, Mr Michael Keeble, met with officers of the Department of Local Government and Regional Development on 19 April 2005 to discuss the current financial problems of the shire, the DLGRD was invited to conduct a financial health check of the shire on 20 April 2005 by the shire president. The DLGRD undertook this as a high priority. (2) The minister did not instruct DLGRD to rectify the situation. However, the DLGRD prepared a report on the financial situation of the shire for the council’s consideration. The minister was kept informed of progress on the matter. The minister met with council members and affirmed the need for immediate action to address the issue. (3) The Local Government Act 1995 provides local authorities with the power to borrow. The application for the loan was approved by the Department of Treasury and Finance consistent with the provisions of section 6.21 of the act. This section provides for approval to be conditional upon the local authority certifying that it has met the requirements stipulated under the act. These include the requirement under section 6.20 of the act for the inclusion of borrowings in the annual budget for the financial year. Section 6.21(2) stipulates that the security of any state lending to local authorities is over the general funds of the local government; for example, rate revenue. In addition to the requirements under the act, guidelines were provided by DTF to all local authorities to assist them to comply with the requirement for the application and approval of loans. These were provided directly to all local authorities in September 2002. These guidelines stipulate that - . . . in line with the objectives of the Local Government Act 1995 , you - That is the local authority - will be fully accountable and responsible for your borrowing/re-borrowing decisions. In short, the local authority is required by both the act and the guidelines for the exercise of borrowing powers under the act to be fully accountable for its own decision making. (4) No, as under the act, the certification required by the CEO of the local authority requires the local authority to comply with the act and the DTF guidelines. (5) Not applicable.
(1) When the Chief Executive Officer of the Shire of Cunderdin, Mr Michael Keeble, met with officers of the Department of Local Government and Regional Development on 19 April 2005 to discuss the current financial problems of the shire, the DLGRD was invited to conduct a financial health check of the shire on 20 April 2005 by the shire president. The DLGRD undertook this as a high priority. (2) The minister did not instruct DLGRD to rectify the situation. However, the DLGRD prepared a report on the financial situation of the shire for the council’s consideration. The minister was kept informed of progress on the matter. The minister met with council members and affirmed the need for immediate action to address the issue. (3) The Local Government Act 1995 provides local authorities with the power to borrow. The application for the loan was approved by the Department of Treasury and Finance consistent with the provisions of section 6.21 of the act. This section provides for approval to be conditional upon the local authority certifying that it has met the requirements stipulated under the act. These include the requirement under section 6.20 of the act for the inclusion of borrowings in the annual budget for the financial year. Section 6.21(2) stipulates that the security of any state lending to local authorities is over the general funds of the local government; for example, rate revenue. In addition to the requirements under the act, guidelines were provided by DTF to all local authorities to assist them to comply with the requirement for the application and approval of loans. These were provided directly to all local authorities in September 2002. These guidelines stipulate that - . . . in line with the objectives of the Local Government Act 1995 , you - That is the local authority - will be fully accountable and responsible for your borrowing/re-borrowing decisions. In short, the local authority is required by both the act and the guidelines for the exercise of borrowing powers under the act to be fully accountable for its own decision making. (4) No, as under the act, the certification required by the CEO of the local authority requires the local authority to comply with the act and the DTF guidelines. (5) Not applicable.
(2) The minister did not instruct DLGRD to rectify the situation. However, the DLGRD prepared a report on the financial situation of the shire for the council’s consideration. The minister was kept informed of progress on the matter. The minister met with council members and affirmed the need for immediate action to address the issue. (3) The Local Government Act 1995 provides local authorities with the power to borrow. The application for the loan was approved by the Department of Treasury and Finance consistent with the provisions of section 6.21 of the act. This section provides for approval to be conditional upon the local authority certifying that it has met the requirements stipulated under the act. These include the requirement under section 6.20 of the act for the inclusion of borrowings in the annual budget for the financial year. Section 6.21(2) stipulates that the security of any state lending to local authorities is over the general funds of the local government; for example, rate revenue. In addition to the requirements under the act, guidelines were provided by DTF to all local authorities to assist them to comply with the requirement for the application and approval of loans. These were provided directly to all local authorities in September 2002. These guidelines stipulate that - . . . in line with the objectives of the Local Government Act 1995 , you - That is the local authority - will be fully accountable and responsible for your borrowing/re-borrowing decisions. In short, the local authority is required by both the act and the guidelines for the exercise of borrowing powers under the act to be fully accountable for its own decision making. (4) No, as under the act, the certification required by the CEO of the local authority requires the local authority to comply with the act and the DTF guidelines. (5) Not applicable.
(3) The Local Government Act 1995 provides local authorities with the power to borrow. The application for the loan was approved by the Department of Treasury and Finance consistent with the provisions of section 6.21 of the act. This section provides for approval to be conditional upon the local authority certifying that it has met the requirements stipulated under the act. These include the requirement under section 6.20 of the act for the inclusion of borrowings in the annual budget for the financial year. Section 6.21(2) stipulates that the security of any state lending to local authorities is over the general funds of the local government; for example, rate revenue. In addition to the requirements under the act, guidelines were provided by DTF to all local authorities to assist them to comply with the requirement for the application and approval of loans. These were provided directly to all local authorities in September 2002. These guidelines stipulate that - . . . in line with the objectives of the Local Government Act 1995 , you - That is the local authority - will be fully accountable and responsible for your borrowing/re-borrowing decisions. In short, the local authority is required by both the act and the guidelines for the exercise of borrowing powers under the act to be fully accountable for its own decision making. (4) No, as under the act, the certification required by the CEO of the local authority requires the local authority to comply with the act and the DTF guidelines. (5) Not applicable.
(5) Not applicable.
(1) When did the government become aware that the Shire of Cunderdin was experiencing financial difficulties? (2) What steps did the minister instruct the Department of Local Government and Regional Development to take to rectify the situation? (3) Did the Western Australian Treasury approve a loan application from the Shire of Cunderdin to purchase an Ettamogah hotel franchise without receiving an appropriate business plan from the shire? (4) Did Treasury provide any advice on the viability of the hotel venture? (5) If yes to (4), why did Treasury advance the loan if it believed the project was not viable? Hon JON FORD replied: I thank the member for some notice of this question. The Minister for Local Government and Regional Development has provided the following answer - (1) When the Chief Executive Officer of the Shire of Cunderdin, Mr Michael Keeble, met with officers of the Department of Local Government and Regional Development on 19 April 2005 to discuss the current financial problems of the shire, the DLGRD was invited to conduct a financial health check of the shire on 20 April 2005 by the shire president. The DLGRD undertook this as a high priority. (2) The minister did not instruct DLGRD to rectify the situation. However, the DLGRD prepared a report on the financial situation of the shire for the council’s consideration. The minister was kept informed of progress on the matter. The minister met with council members and affirmed the need for immediate action to address the issue. (3) The Local Government Act 1995 provides local authorities with the power to borrow. The application for the loan was approved by the Department of Treasury and Finance consistent with the provisions of section 6.21 of the act. This section provides for approval to be conditional upon the local authority certifying that it has met the requirements stipulated under the act. These include the requirement under section 6.20 of the act for the inclusion of borrowings in the annual budget for the financial year. Section 6.21(2) stipulates that the security of any state lending to local authorities is over the general funds of the local government; for example, rate revenue. In addition to the requirements under the act, guidelines were provided by DTF to all local authorities to assist them to comply with the requirement for the application and approval of loans. These were provided directly to all local authorities in September 2002. These guidelines stipulate that - . . . in line with the objectives of the Local Government Act 1995 , you - That is the local authority - will be fully accountable and responsible for your borrowing/re-borrowing decisions. In short, the local authority is required by both the act and the guidelines for the exercise of borrowing powers under the act to be fully accountable for its own decision making. (4) No, as under the act, the certification required by the CEO of the local authority requires the local authority to comply with the act and the DTF guidelines. (5) Not applicable.
(2) What steps did the minister instruct the Department of Local Government and Regional Development to take to rectify the situation? (3) Did the Western Australian Treasury approve a loan application from the Shire of Cunderdin to purchase an Ettamogah hotel franchise without receiving an appropriate business plan from the shire? (4) Did Treasury provide any advice on the viability of the hotel venture? (5) If yes to (4), why did Treasury advance the loan if it believed the project was not viable? Hon JON FORD replied: I thank the member for some notice of this question. The Minister for Local Government and Regional Development has provided the following answer - (1) When the Chief Executive Officer of the Shire of Cunderdin, Mr Michael Keeble, met with officers of the Department of Local Government and Regional Development on 19 April 2005 to discuss the current financial problems of the shire, the DLGRD was invited to conduct a financial health check of the shire on 20 April 2005 by the shire president. The DLGRD undertook this as a high priority. (2) The minister did not instruct DLGRD to rectify the situation. However, the DLGRD prepared a report on the financial situation of the shire for the council’s consideration. The minister was kept informed of progress on the matter. The minister met with council members and affirmed the need for immediate action to address the issue. (3) The Local Government Act 1995 provides local authorities with the power to borrow. The application for the loan was approved by the Department of Treasury and Finance consistent with the provisions of section 6.21 of the act. This section provides for approval to be conditional upon the local authority certifying that it has met the requirements stipulated under the act. These include the requirement under section 6.20 of the act for the inclusion of borrowings in the annual budget for the financial year. Section 6.21(2) stipulates that the security of any state lending to local authorities is over the general funds of the local government; for example, rate revenue. In addition to the requirements under the act, guidelines were provided by DTF to all local authorities to assist them to comply with the requirement for the application and approval of loans. These were provided directly to all local authorities in September 2002. These guidelines stipulate that - . . . in line with the objectives of the Local Government Act 1995 , you - That is the local authority - will be fully accountable and responsible for your borrowing/re-borrowing decisions. In short, the local authority is required by both the act and the guidelines for the exercise of borrowing powers under the act to be fully accountable for its own decision making. (4) No, as under the act, the certification required by the CEO of the local authority requires the local authority to comply with the act and the DTF guidelines. (5) Not applicable.
(3) Did the Western Australian Treasury approve a loan application from the Shire of Cunderdin to purchase an Ettamogah hotel franchise without receiving an appropriate business plan from the shire? (4) Did Treasury provide any advice on the viability of the hotel venture? (5) If yes to (4), why did Treasury advance the loan if it believed the project was not viable? Hon JON FORD replied: I thank the member for some notice of this question. The Minister for Local Government and Regional Development has provided the following answer - (1) When the Chief Executive Officer of the Shire of Cunderdin, Mr Michael Keeble, met with officers of the Department of Local Government and Regional Development on 19 April 2005 to discuss the current financial problems of the shire, the DLGRD was invited to conduct a financial health check of the shire on 20 April 2005 by the shire president. The DLGRD undertook this as a high priority. (2) The minister did not instruct DLGRD to rectify the situation. However, the DLGRD prepared a report on the financial situation of the shire for the council’s consideration. The minister was kept informed of progress on the matter. The minister met with council members and affirmed the need for immediate action to address the issue. (3) The Local Government Act 1995 provides local authorities with the power to borrow. The application for the loan was approved by the Department of Treasury and Finance consistent with the provisions of section 6.21 of the act. This section provides for approval to be conditional upon the local authority certifying that it has met the requirements stipulated under the act. These include the requirement under section 6.20 of the act for the inclusion of borrowings in the annual budget for the financial year. Section 6.21(2) stipulates that the security of any state lending to local authorities is over the general funds of the local government; for example, rate revenue. In addition to the requirements under the act, guidelines were provided by DTF to all local authorities to assist them to comply with the requirement for the application and approval of loans. These were provided directly to all local authorities in September 2002. These guidelines stipulate that - . . . in line with the objectives of the Local Government Act 1995 , you - That is the local authority - will be fully accountable and responsible for your borrowing/re-borrowing decisions. In short, the local authority is required by both the act and the guidelines for the exercise of borrowing powers under the act to be fully accountable for its own decision making. (4) No, as under the act, the certification required by the CEO of the local authority requires the local authority to comply with the act and the DTF guidelines. (5) Not applicable.
(4) Did Treasury provide any advice on the viability of the hotel venture? (5) If yes to (4), why did Treasury advance the loan if it believed the project was not viable? Hon JON FORD replied: I thank the member for some notice of this question. The Minister for Local Government and Regional Development has provided the following answer - (1) When the Chief Executive Officer of the Shire of Cunderdin, Mr Michael Keeble, met with officers of the Department of Local Government and Regional Development on 19 April 2005 to discuss the current financial problems of the shire, the DLGRD was invited to conduct a financial health check of the shire on 20 April 2005 by the shire president. The DLGRD undertook this as a high priority. (2) The minister did not instruct DLGRD to rectify the situation. However, the DLGRD prepared a report on the financial situation of the shire for the council’s consideration. The minister was kept informed of progress on the matter. The minister met with council members and affirmed the need for immediate action to address the issue. (3) The Local Government Act 1995 provides local authorities with the power to borrow. The application for the loan was approved by the Department of Treasury and Finance consistent with the provisions of section 6.21 of the act. This section provides for approval to be conditional upon the local authority certifying that it has met the requirements stipulated under the act. These include the requirement under section 6.20 of the act for the inclusion of borrowings in the annual budget for the financial year. Section 6.21(2) stipulates that the security of any state lending to local authorities is over the general funds of the local government; for example, rate revenue. In addition to the requirements under the act, guidelines were provided by DTF to all local authorities to assist them to comply with the requirement for the application and approval of loans. These were provided directly to all local authorities in September 2002. These guidelines stipulate that - . . . in line with the objectives of the Local Government Act 1995 , you - That is the local authority - will be fully accountable and responsible for your borrowing/re-borrowing decisions. In short, the local authority is required by both the act and the guidelines for the exercise of borrowing powers under the act to be fully accountable for its own decision making. (4) No, as under the act, the certification required by the CEO of the local authority requires the local authority to comply with the act and the DTF guidelines. (5) Not applicable.
(5) If yes to (4), why did Treasury advance the loan if it believed the project was not viable? Hon JON FORD replied: I thank the member for some notice of this question. The Minister for Local Government and Regional Development has provided the following answer - (1) When the Chief Executive Officer of the Shire of Cunderdin, Mr Michael Keeble, met with officers of the Department of Local Government and Regional Development on 19 April 2005 to discuss the current financial problems of the shire, the DLGRD was invited to conduct a financial health check of the shire on 20 April 2005 by the shire president. The DLGRD undertook this as a high priority. (2) The minister did not instruct DLGRD to rectify the situation. However, the DLGRD prepared a report on the financial situation of the shire for the council’s consideration. The minister was kept informed of progress on the matter. The minister met with council members and affirmed the need for immediate action to address the issue. (3) The Local Government Act 1995 provides local authorities with the power to borrow. The application for the loan was approved by the Department of Treasury and Finance consistent with the provisions of section 6.21 of the act. This section provides for approval to be conditional upon the local authority certifying that it has met the requirements stipulated under the act. These include the requirement under section 6.20 of the act for the inclusion of borrowings in the annual budget for the financial year. Section 6.21(2) stipulates that the security of any state lending to local authorities is over the general funds of the local government; for example, rate revenue. In addition to the requirements under the act, guidelines were provided by DTF to all local authorities to assist them to comply with the requirement for the application and approval of loans. These were provided directly to all local authorities in September 2002. These guidelines stipulate that - . . . in line with the objectives of the Local Government Act 1995 , you - That is the local authority - will be fully accountable and responsible for your borrowing/re-borrowing decisions. In short, the local authority is required by both the act and the guidelines for the exercise of borrowing powers under the act to be fully accountable for its own decision making. (4) No, as under the act, the certification required by the CEO of the local authority requires the local authority to comply with the act and the DTF guidelines. (5) Not applicable.
Hon JON FORD replied: I thank the member for some notice of this question. The Minister for Local Government and Regional Development has provided the following answer - (1) When the Chief Executive Officer of the Shire of Cunderdin, Mr Michael Keeble, met with officers of the Department of Local Government and Regional Development on 19 April 2005 to discuss the current financial problems of the shire, the DLGRD was invited to conduct a financial health check of the shire on 20 April 2005 by the shire president. The DLGRD undertook this as a high priority. (2) The minister did not instruct DLGRD to rectify the situation. However, the DLGRD prepared a report on the financial situation of the shire for the council’s consideration. The minister was kept informed of progress on the matter. The minister met with council members and affirmed the need for immediate action to address the issue. (3) The Local Government Act 1995 provides local authorities with the power to borrow. The application for the loan was approved by the Department of Treasury and Finance consistent with the provisions of section 6.21 of the act. This section provides for approval to be conditional upon the local authority certifying that it has met the requirements stipulated under the act. These include the requirement under section 6.20 of the act for the inclusion of borrowings in the annual budget for the financial year. Section 6.21(2) stipulates that the security of any state lending to local authorities is over the general funds of the local government; for example, rate revenue. In addition to the requirements under the act, guidelines were provided by DTF to all local authorities to assist them to comply with the requirement for the application and approval of loans. These were provided directly to all local authorities in September 2002. These guidelines stipulate that - . . . in line with the objectives of the Local Government Act 1995 , you - That is the local authority - will be fully accountable and responsible for your borrowing/re-borrowing decisions. In short, the local authority is required by both the act and the guidelines for the exercise of borrowing powers under the act to be fully accountable for its own decision making. (4) No, as under the act, the certification required by the CEO of the local authority requires the local authority to comply with the act and the DTF guidelines. (5) Not applicable.
I thank the member for some notice of this question. The Minister for Local Government and Regional Development has provided the following answer - (1) When the Chief Executive Officer of the Shire of Cunderdin, Mr Michael Keeble, met with officers of the Department of Local Government and Regional Development on 19 April 2005 to discuss the current financial problems of the shire, the DLGRD was invited to conduct a financial health check of the shire on 20 April 2005 by the shire president. The DLGRD undertook this as a high priority. (2) The minister did not instruct DLGRD to rectify the situation. However, the DLGRD prepared a report on the financial situation of the shire for the council’s consideration. The minister was kept informed of progress on the matter. The minister met with council members and affirmed the need for immediate action to address the issue. (3) The Local Government Act 1995 provides local authorities with the power to borrow. The application for the loan was approved by the Department of Treasury and Finance consistent with the provisions of section 6.21 of the act. This section provides for approval to be conditional upon the local authority certifying that it has met the requirements stipulated under the act. These include the requirement under section 6.20 of the act for the inclusion of borrowings in the annual budget for the financial year. Section 6.21(2) stipulates that the security of any state lending to local authorities is over the general funds of the local government; for example, rate revenue. In addition to the requirements under the act, guidelines were provided by DTF to all local authorities to assist them to comply with the requirement for the application and approval of loans. These were provided directly to all local authorities in September 2002. These guidelines stipulate that - . . . in line with the objectives of the Local Government Act 1995 , you - That is the local authority - will be fully accountable and responsible for your borrowing/re-borrowing decisions. In short, the local authority is required by both the act and the guidelines for the exercise of borrowing powers under the act to be fully accountable for its own decision making. (4) No, as under the act, the certification required by the CEO of the local authority requires the local authority to comply with the act and the DTF guidelines. (5) Not applicable.
(1) When the Chief Executive Officer of the Shire of Cunderdin, Mr Michael Keeble, met with officers of the Department of Local Government and Regional Development on 19 April 2005 to discuss the current financial problems of the shire, the DLGRD was invited to conduct a financial health check of the shire on 20 April 2005 by the shire president. The DLGRD undertook this as a high priority. (2) The minister did not instruct DLGRD to rectify the situation. However, the DLGRD prepared a report on the financial situation of the shire for the council’s consideration. The minister was kept informed of progress on the matter. The minister met with council members and affirmed the need for immediate action to address the issue. (3) The Local Government Act 1995 provides local authorities with the power to borrow. The application for the loan was approved by the Department of Treasury and Finance consistent with the provisions of section 6.21 of the act. This section provides for approval to be conditional upon the local authority certifying that it has met the requirements stipulated under the act. These include the requirement under section 6.20 of the act for the inclusion of borrowings in the annual budget for the financial year. Section 6.21(2) stipulates that the security of any state lending to local authorities is over the general funds of the local government; for example, rate revenue. In addition to the requirements under the act, guidelines were provided by DTF to all local authorities to assist them to comply with the requirement for the application and approval of loans. These were provided directly to all local authorities in September 2002. These guidelines stipulate that - . . . in line with the objectives of the Local Government Act 1995 , you - That is the local authority - will be fully accountable and responsible for your borrowing/re-borrowing decisions. In short, the local authority is required by both the act and the guidelines for the exercise of borrowing powers under the act to be fully accountable for its own decision making. (4) No, as under the act, the certification required by the CEO of the local authority requires the local authority to comply with the act and the DTF guidelines. (5) Not applicable.
(2) The minister did not instruct DLGRD to rectify the situation. However, the DLGRD prepared a report on the financial situation of the shire for the council’s consideration. The minister was kept informed of progress on the matter. The minister met with council members and affirmed the need for immediate action to address the issue. (3) The Local Government Act 1995 provides local authorities with the power to borrow. The application for the loan was approved by the Department of Treasury and Finance consistent with the provisions of section 6.21 of the act. This section provides for approval to be conditional upon the local authority certifying that it has met the requirements stipulated under the act. These include the requirement under section 6.20 of the act for the inclusion of borrowings in the annual budget for the financial year. Section 6.21(2) stipulates that the security of any state lending to local authorities is over the general funds of the local government; for example, rate revenue. In addition to the requirements under the act, guidelines were provided by DTF to all local authorities to assist them to comply with the requirement for the application and approval of loans. These were provided directly to all local authorities in September 2002. These guidelines stipulate that - . . . in line with the objectives of the Local Government Act 1995 , you - That is the local authority - will be fully accountable and responsible for your borrowing/re-borrowing decisions. In short, the local authority is required by both the act and the guidelines for the exercise of borrowing powers under the act to be fully accountable for its own decision making. (4) No, as under the act, the certification required by the CEO of the local authority requires the local authority to comply with the act and the DTF guidelines. (5) Not applicable.
(3) The Local Government Act 1995 provides local authorities with the power to borrow. The application for the loan was approved by the Department of Treasury and Finance consistent with the provisions of section 6.21 of the act. This section provides for approval to be conditional upon the local authority certifying that it has met the requirements stipulated under the act. These include the requirement under section 6.20 of the act for the inclusion of borrowings in the annual budget for the financial year. Section 6.21(2) stipulates that the security of any state lending to local authorities is over the general funds of the local government; for example, rate revenue. In addition to the requirements under the act, guidelines were provided by DTF to all local authorities to assist them to comply with the requirement for the application and approval of loans. These were provided directly to all local authorities in September 2002. These guidelines stipulate that - . . . in line with the objectives of the Local Government Act 1995 , you - That is the local authority - will be fully accountable and responsible for your borrowing/re-borrowing decisions. In short, the local authority is required by both the act and the guidelines for the exercise of borrowing powers under the act to be fully accountable for its own decision making. (4) No, as under the act, the certification required by the CEO of the local authority requires the local authority to comply with the act and the DTF guidelines. (5) Not applicable.
(5) Not applicable.
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