Shire of Coolgardie hits back at minister following show-cause notice, insists it is not ‘dysfunctional’

The Shire of Coolgardie has hit back at the local government minister following her issuing of a show-cause notice on Tuesday, saying it was not warned of the move. And the Goldfields local government which is under extreme financial pressure because of a crippling debt — which new documents reveal got as high as $30.49 million in 2023-24 — insists it is not “dysfunctional”, unlike other WA councils facing ministerial intervention. Minister Hannah Beazley’s show-cause notice gives the shire 21 days to demonstrate why it should not be suspended. The notice outlines the State Government’s serious concerns regarding the shire’s financial management and governance that has led to its current financial position. It also expresses the Government’s concerns about the shire’s governance decisions, long-term financial planning, and ability to restore financial stability. Shire president Malcolm Cullen on Thursday expressed disappointment about receiving the notice. “The shire was not advised in advance of the minister’s intention to issue the notice and was only made aware shortly before its public release, when (I) received a direct call from the minister,” he said. “We are very disappointed that there has been no prior engagement from the minister’s office or the department given our ongoing co-operation. “We are also disappointed that there has been no support from the minister’s office or the department when we’ve asked for it throughout this whole process, and have concerns with the lack of procedural fairness. “We have consistently provided the department regular updates, responded to requests for information, acknowledged past mistakes, and are demonstrating substantial progress toward financial recovery. “However, we have done this alone. “At no stage has anyone from the department or the minister’s office liaised directly with this council to work through the matters raised.” Cr Cullen said if concerns had existed at ministerial level, they could have been addressed much earlier through open dialogue, rather than this course of action which only detracted from the 10 months of positive work already undertaken. “Despite our commitment to openness and transparency, we feel that council and the Shire of Coolgardie community have been left in the dark, particularly with regards to the City of Kalgoorlie-Boulder’s boundary adjustment submission still remaining confidential,” he said. “Additionally, we are only two months away from local government elections, so the timing of this is concerning given that the electoral process is already well under way.” He said the shire would thoroughly review the content of the show-cause notice and provide a formal response within the required timeframe. “We will continue to work with the minister and the department of local government, but these processes continue to detract from progressing recovery and delivering important on-ground outcomes for our residents,” he said. “Our focus remains firmly on progressing our recovery, delivering services and rebuilding trust with our community. “Council has been working constructively with the (shire) administration and we are making real strides towards recovery. “Unlike a number of other councils facing ministerial intervention currently, this council is not dysfunctional — we are united in our focus and purpose and are working well together with the administration to turn this situation around.” Cr Cullen said while the shire had faced challenges, significant progress had been made since last November, including this week’s council endorsement of the financial recovery plan. The plan charts a 10-year pathway to pay off the debt — which it reveals rose from $690,000 in 2017-18 to $30.49m in 2023-24, before reducing to $27.52m at June 30 this year and is being forecast to be $25.8m at June 30 next year. The plan stated the “most substantial increase in debt occurred from 2022-23 when, over a three-year period, $27.3m was borrowed (inclusive of a $3.8m lease) to fund the construction of Bluebush Village”. The village is a workers accommodation facility in Kambalda, and the plan reveals its impending sale could substantially improve the shire’s debt situation. It states the “disposal of this asset is occurring in Q1 of 2025-26” — which means by the end of next month — and places a “conservative” price of $19m on the facility. “It should be noted that if Bluebush Village is sold during this period, many of the indicators will change significantly, particularly the debt ratio which will immediately place the shire back into acceptable ranges,” the plan states.