January 22, 2021- COUNCIL VOTES ON PORT HINCHINBROOK SEWERAGE
Cassowary Coast Regional Council yesterday voted unanimously against a proposal to take on ownership of the Port Hinchinbrook sewage scheme, which required a sewerage treatment plant replacement.
Council has been working with stakeholders in an effort towards long-term solutions to a number of issues within the Port Hinchinbrook development, mainly in relation to the Sewerage Treatment Plant (STP).
Cassowary Coast Mayor Mark Nolan said that since 2018, Council had been operating and maintaining the current STP at Port Hinchinbrook under an interim funding agreement with Department of State Development, Tourism and Innovation (DSDTI).
“In September 2020, a proposal was put to Council from DSDTI for a long term solution that would see Council take ownership and control of the STP. The proposal included a $4.3million contribution from the state government and required a $2 million contribution from Council.
“Understandably this is a complicated matter and one that needed to be investigated thoroughly. Council needed to consider the ongoing funding of operations from a small rate base and investigations showed the total project cost is estimated to be upwards of $8.6 million. This includes construction of the STP, acquisition of STP and roads land within the Port Hinchinbrook Estate and additionally to this, there are related works to the sewerage network.
“In late 2020, Council undertook community engagement surveys on the proposal and proposed solutions. Feedback from impacted residents in the Port Hinchinbrook estate was that the indicative charge of $3,000 per annum with an additional $1,500 per year for ten years as a special charge for the capital contribution would be unaffordable with some property owners indicating that they were attempting to sell their properties and had been unable to do so,” Councillor Nolan said.
Councillor Nolan stated that residents from the wider Cassowary Coast region who provided feedback also indicated their preference that the general rate payer should not be burdened with this cost and this should be borne by the residents of the estate.
“I could not in good conscience place our residents of not only Port Hinchinbrook, but also the wider ratepayer base in financial hardship. The majority of our residents have said that they don’t want this and we need to listen.
“It has been a tough year with covid impacts and with the current Council focus on asset rationalisation and reducing our operating costs - it would not be appropriate to take on a large asset that is in poor condition without a concrete plan on how this cost would be supported,”
Mayor Nolan reiterated discussions from the Council meeting regarding keeping the entire conformed deed* in place as he and the other Councillors were concerned that eroding the full content of the deed would potentially weaken the Council’s and the broader community’s position.
*The conformed deed sets out the roles and responsibilities of the owner, council, local and federal government in regards to Port Hinchinbrook.