The Western Australian Local Government Association (WALGA) has stated that legislation to reduce rent and rate increases amongst mining tenement holders fails to also address non-payment of legitimate Local Government rates.
WALGA Deputy President Councillor Lynne Craigie said whilst the legislation recently announced will address State land valuation anomalies which have led to large rent and rate increases for some mining tenement holders, opportunities for Local Governments to ensure payment and collection of unpaid tenement rates are still lacking.
“Council rates on mining tenements are calculated according to a State land valuation, and we welcome changes that ensure that this process and the rates derived from it, remains appropriate.
“However, a number of tenement holders are failing to pay any rates at all and the changes necessary to address this also need attention from the government.”
Cr Craigie said the non-payment of legitimate rate bills by some tenement holders was creating revenue shortfalls in a number of remote and regional Local Governments, which means general ratepayers are footing the bill for these recalcitrant tenement holders.
“State Government has the power to terminate a tenement for not paying the required annual State rent, but Local Governments face great difficulty in enforcing the payment of rates from the same tenement holders.
“Tenements can be sold without ensuring rates payments are up to date; and many tenement holders are shelf companies with no other assets, making it difficult and costly for Councils to pursue outstanding rates.”
Cr Craigie said the situation would be significantly improved if Local Government rates were included in forfeit conditions for non-payment of rent to the Department of Mines and Petroleum.
“Whilst we welcome legislation that will safeguard interests vested in mining exploration and industry, the government needs to equally safeguard the interests of local communities by ensuring that the mining companies carrying out that exploration actually pay their rates.”
Cr Craigie indicated that WALGA would be seeking a meeting with the Minister to pursue this issue further.
