Qld govt denies rate hikes claim | QLD News | Breaking News in Queensland

THE state government says there's no relationship between higher rates and the forced amalgamation of Queensland councils.

Some amalgamated councils have increased rates by up to 20 per cent because forecast savings from the mergers two years ago have not eventuated, media reports say.

But Local Government Minister Desley Boyle has blamed the global financial crisis for driving up rates across all councils.

"In 2009, amalgamated and non-amalgamated councils had no choice but to raise rates," she said.

"Their revenue is down, yet there is no less an imperative for councils to keep their capital works programs running and jobs flowing."

She said rate rises across Queensland's councils were commonly between five and eight per cent.

She said some examples of amalgamated councils increasing their rates were Tablelands (six per cent), Gladstone (5.3 per cent), and Townsville, Cairns, and Isaac Regional Council (all up eight per cent).

The minister said non-amalgamated councils that increased rates included Bollon (five per cent), Ipswich (5.7 per cent), Brisbane (6.4 per cent), Burdekin (7.5 per cent), Redland (7.92 per cent) and Gold Coast and Mt Isa (both more than 11 per cent).

"These figures show that rate rises did not correlate with amalgamations," she said.

"Many amalgamated councils such as Moreton Bay, Cairns, Bundaberg, Somerset, Townsville, Central Highlands and Fraser Coast have spoken about the financial and other benefits they're seeing, consequent on amalgamation.

"I have to compliment the amalgamated councils for their tremendous work ... especially due to the impact of the global financial crisis."