Amalgamations to blame for higher rates?

The Queensland Government says amalgamation is not to blame for higher rates increases in some council budgets. Local Government Association of Queensland (LGAQ) president Paul Bell says rates increases have jumped from around 5 per cent to an average of 10 per cent in the two years since amalgamation.

But Queensland Local Government Minister Desley Boyle says international economic pressures have caused high rates increases in all councils. "It's very mischievous," she said. "They've gone up just as much in non-amalgamated councils such as Brisbane, Gold Coast, Mt Isa. The cost of construction is one of the key factors affecting local government."

She says the global financial crisis affected local government income through reduced development applications and housing developments. "The much more likely connection is the huge global financial crisis," she said. "That would explain, for example, why non-amalgamated councils like Brisbane raised their rates over 6 per cent. Gold Coast raised its rates by 11.4 per cent, Mt Isa had a rate rise of 17 per cent."