Rates bill paid Government offers one-off Thales deal
The Federal Government has agreed to pay this year’s rates of nearly $450 000 for the Thales munitions factory as what may be a one-off gesture to Benalla Rural City Council to avert a shortfall in rates.
The government informed the council in late July that, as the munitions facility had been sold back to the Commonwealth, it no longer had any liability to pay rates under the Australian Constitution Act.
Benalla Rural City Council chief executive officer Tony McIlroy met on Monday with Senator Bridget McKenzie, Defence Minister Marise Payne and the government solicitor to see if there could be a compromise.
‘‘There was an open forum for a discussion between myself and the secretary of the Department (of Defence) and senior management of the department to establish what the future might hold in terms of transitional arrangements,’’ Mr McIlroy said.
‘‘There’s a bit less than $448 000 . . . That gives us an opportunity to get it into our longterm 10-year forward-financial plan.
‘‘The department was conscious this would have put the council in a financial position of hardship, that’s why its been sympathetic to try and assist us and they’ve discussed the possibility of additional support.
‘‘I think it’s fair to say there’s been a change of policy from the days of old in terms of the agreement that was reached in 1993 and from my local government management point of view, I’ve been in senior management roles for the last 25 years and I’ve never seen such a wind back at both federal and state government in relation to programs and financial assistance, so I think it’s the order of the day for the immediate future.’’
Senator McKenzie said it was great news as it would have impacted the wider Benalla community.
‘‘This would have been devastating for a rural council like Benalla, which is doing everything it can to spend ratepayers dollars effectively, an environment made harder by the state Labor Government cap on rates,’’ Senator McKenzie said.
When the munitions factory opened in 1993, the council waived rates for the first five years and charged discounted rates for a further five years as an incentive for the facility to be built in Benalla.
The site’s rates equate to three per cent of Benalla’s entire rate base.