There’s no longer a need for Council to obtain an overdraft to ensure payment for road repairs as a hiccup in accessing funding appears to have been resolved … but they’re going to keep it up their sleeve, anyway.
The South Burnett Regional Council and the Queensland Reconstruction Authority (QRA) agree there is “no issue” between them over payments for road repairs.
A recent news report suggested Council had not yet received $25.9 million to pay for the repairs, and for this reason was establishing an overdraft facility to make payments.
However, southburnett.com.au understands Council had received the funding.
The issue actually lay with the processing of QRA approvals allowing it to access the funds.
It was for this reason the Council voted recently to establish an overdraft facility to cover any possible cash flow issues in paying contractors and sub-contractors.
On Friday, Member for Nanango Deb Frecklington said Council had received payments of $30.9 million from the QRA and had spent $22.4 million.
“My understanding is that the South Burnett Regional Council has no financial issues with payments from the Queensland Reconstruction Authority,” she said.
Mayor Wayne Kratzmann said today that following Council’s decision to source an overdraft, the QRA had released more funds to cover payments.
“Since Council’s decision QRA has released the necessary funds to cover the cost of works to date plus the necessary advance to avoid having to use the overdraft facility,” he said.
Deputy Mayor Cr Keith Campbell said that as the overdraft facility had now been established, and it was not a cost to Council, it would remain in place until the flood works are finished in mid-2013.
“Holding the overdraft will protect the interests of local sub-contractors and local suppliers,” he said.
CEO Mr Ken McLoughlin said the QRA was currently inundated with claims and was “under significant pressure from many Councils across Queensland”.
“QRA and Council enjoy a very professional relationship and South Burnett Regional Council has a high regard for the work they are doing to help get the flood recovery done,” Mr McLoughlin said.
