Inflation Bites as Council Seeks to Balance Budget
Supply chain shortages and a tightening labour market are just some of the things keeping the cost of business stubbornly high as Livingstone Shire Council seeks to balance it’s 2023/24 Budget in the coming weeks.
According to Mayor Andy Ireland, it is increasingly difficult to keep rates rises at or below the Consumer Price Index (CPI).
"While regional Queensland has experienced a stronger than expected recovery out of the COVID-19 pandemic, Livingstone Shire is subject to the same economic headwinds that are affecting families and households,” Mayor Ireland said.
“We don’t want to be adding to those headaches for people, but we’ve got to be responsible with the public purse as well.
“We have seen a 2.7% increase in Livingstone’s estimated population growth in the twelve months to 30 June 2022, compared to regional Queensland’s 1.9% and Queensland’s 2.1%.
“According to Regional Australia Institute’s Regional Movers Index for the March Quarter 2023, Livingstone Shire has experienced a 479% annual growth in net capital-regional migration. In other words, out of all the regional areas in Australia, Livingstone is the top pick for capital city dwellers seeking a tree, or sea-change.
“While population growth brings economic benefit, it also requires more investment in community infrastructure.
“This investment is compounded by the rise in costs of building and maintaining community infrastructure. Between April 2022 and April 2023, we have seen a 13.4% increase in the costs of road and bridge construction and 25% increase in concrete product manufacturing.
“Economic conditions are tough around the country with inflation, interest rate rises, and rising fuel and energy costs putting significant pressure on households and the local economy. Livingstone Shire Council is not immune to these conditions, and we need to make some tough decisions now to ensure the long-term financial stability and viability of the region. We recognise that by increasing rates we are placing additional pressures on households, but with 46 percent on Queensland’s local councils at medium to high risk of becoming unviable, Livingstone does not want to become one of these.
“Council will endeavour to keep any potential rates rise below the current CPI rate (Brisbane) of 7.4%. It is a challenge, but it is a challenge that we will meet head on.
“The future is bright for Livingstone Shire, and we can be optimistic about where our Shire is heading.
“The community can be assured that we are committed to delivering a responsible budget while minimising the impact on ratepayers as much as possible, who are always at the centre of our decisions.”