Mr NATT - 2005-08-17
To give the Minister for Employment, Education and Training a rest, could the minister please inform members about the latest developments regarding suspension of the Yuendumu Community Government Council?
ANSWER
Madam Speaker, I thank the member for Drysdale for his question. The Yuendumu Community Government Council is awaiting formal suspension of the previous council and the appointment of a manager under section 264 of the Local Government Act. The process of suspending the council is now under way. The documentation to appoint a manager is being prepared.
There will be a need for the council to borrow up to $700 000 in order to pay creditors and to provide some working capital. It would appear that the council has been supplementing operational funds with tied funds. This has placed the council in jeopardy, as tied funds are required to be spent on specific purposes. The council grossly underestimated labour costs in its profit margin when it tendered for some National Aboriginal Health Strategy (NAHS) project programs. A NAHS housing progress payment of $125 000 is presently owed to council, and payment of this amount is being negotiated. Additional payments will be made for further work later in this financial year.
The situation at Yuendumu was exacerbated by the failure of the council to meet on more than one occasion …
Ms Carney: You must have known this before the election.
Mr McADAM: I cannot comment on that …
Ms Carney: Waited until after the election, did you?
Madam SPEAKER: Order!
Mr McADAM: I cannot comment on it, Leader of the Opposition. Obviously, it was an issue that was being addressed by the previous minister ...
Ms Carney: Yes, after the election. Smells a bit.
Mr McADAM: Appropriate action has been taken in accordance with appropriate legislation, so you can think whatever you wish.
Further, member for Drysdale, a new CEO has been recruited by the Local Government Association of the Northern Territory and that person has commenced duties. A manager has been appointed by government who will be required, amongst other things, to return the council to normality as soon as possible. The community has been briefed by inspectors of Local Government regarding the situation, and the department is writing to the CEO confirming administrative arrangements.
A meeting held at Yuendumu community on 3 August 2005 resolved that the advisory committee of six to eight members would be established to assist the CEO and the manager, and meetings would be attended by the manager with that committee on a monthly basis. The first meeting will be held on 23 August. The committee will participate along the lines of a normal council, but will not have any power to make any resolutions.
The Yuendumu Community Government Council services Willowra community as well, and the existing arrangements will continue. There has been some concern in the Willowra community regarding Yuendumu Council and Willowra’s share of expenditure. However, as I understand it, I spoke to the member for Stuart only Friday of last week …
Ms CARNEY: A point of order, Madam Speaker! The matters the minister is raising are very serious and go to alleged improprieties at the Yuendumu Community Government Council. I would have thought that this matter is best dealt with by way of ministerial report. He is also going on and on. If this is as important as you believe it is, and as we believe it is, bring on a ministerial report or statement.
Madam SPEAKER: Leader of the Opposition, there is no point of order. The minister is answering a question that has been asked. Continue, minister.
Mr McADAM: Thank you, Madam Speaker. Of course, the member for Drysdale has asked me a question and I will respond accordingly. This venue, this time, this place, is the appropriate place to respond in the manner that I am.
As I was saying previously, I have also spoken to the member for Stuart because he raised some concerns with me in regard to Willowra …
Ms Carney: After the election.
Mr McADAM: No, not at all.
Ms Carney: You knew this stuff before the election and now you close it down …
Madam SPEAKER: Order, Leader of the Opposition, cease interjecting. Order, Leader of the Opposition! Please continue, minister. Perhaps you could hasten your answer.
Mr McADAM: As I was saying, I spoke to the member for Stuart. He is the member representing that electorate. He is of the view now that things are in place which will allow the Yuendumu community, as well as the Willowra community, to get back on its feet. I know that there will be considerable support, not only from the Northern Territory government but also the Commonwealth in respect to supporting this community. I trust that they will be able to be fully functional as a council, hopefully by February/March 2006.
ANSWER
Madam Speaker, I thank the member for Drysdale for his question. The Yuendumu Community Government Council is awaiting formal suspension of the previous council and the appointment of a manager under section 264 of the Local Government Act. The process of suspending the council is now under way. The documentation to appoint a manager is being prepared.
There will be a need for the council to borrow up to $700 000 in order to pay creditors and to provide some working capital. It would appear that the council has been supplementing operational funds with tied funds. This has placed the council in jeopardy, as tied funds are required to be spent on specific purposes. The council grossly underestimated labour costs in its profit margin when it tendered for some National Aboriginal Health Strategy (NAHS) project programs. A NAHS housing progress payment of $125 000 is presently owed to council, and payment of this amount is being negotiated. Additional payments will be made for further work later in this financial year.
The situation at Yuendumu was exacerbated by the failure of the council to meet on more than one occasion …
Ms Carney: You must have known this before the election.
Mr McADAM: I cannot comment on that …
Ms Carney: Waited until after the election, did you?
Madam SPEAKER: Order!
Mr McADAM: I cannot comment on it, Leader of the Opposition. Obviously, it was an issue that was being addressed by the previous minister ...
Ms Carney: Yes, after the election. Smells a bit.
Mr McADAM: Appropriate action has been taken in accordance with appropriate legislation, so you can think whatever you wish.
Further, member for Drysdale, a new CEO has been recruited by the Local Government Association of the Northern Territory and that person has commenced duties. A manager has been appointed by government who will be required, amongst other things, to return the council to normality as soon as possible. The community has been briefed by inspectors of Local Government regarding the situation, and the department is writing to the CEO confirming administrative arrangements.
A meeting held at Yuendumu community on 3 August 2005 resolved that the advisory committee of six to eight members would be established to assist the CEO and the manager, and meetings would be attended by the manager with that committee on a monthly basis. The first meeting will be held on 23 August. The committee will participate along the lines of a normal council, but will not have any power to make any resolutions.
The Yuendumu Community Government Council services Willowra community as well, and the existing arrangements will continue. There has been some concern in the Willowra community regarding Yuendumu Council and Willowra’s share of expenditure. However, as I understand it, I spoke to the member for Stuart only Friday of last week …
Ms CARNEY: A point of order, Madam Speaker! The matters the minister is raising are very serious and go to alleged improprieties at the Yuendumu Community Government Council. I would have thought that this matter is best dealt with by way of ministerial report. He is also going on and on. If this is as important as you believe it is, and as we believe it is, bring on a ministerial report or statement.
Madam SPEAKER: Leader of the Opposition, there is no point of order. The minister is answering a question that has been asked. Continue, minister.
Mr McADAM: Thank you, Madam Speaker. Of course, the member for Drysdale has asked me a question and I will respond accordingly. This venue, this time, this place, is the appropriate place to respond in the manner that I am.
As I was saying previously, I have also spoken to the member for Stuart because he raised some concerns with me in regard to Willowra …
Ms Carney: After the election.
Mr McADAM: No, not at all.
Ms Carney: You knew this stuff before the election and now you close it down …
Madam SPEAKER: Order, Leader of the Opposition, cease interjecting. Order, Leader of the Opposition! Please continue, minister. Perhaps you could hasten your answer.
Mr McADAM: As I was saying, I spoke to the member for Stuart. He is the member representing that electorate. He is of the view now that things are in place which will allow the Yuendumu community, as well as the Willowra community, to get back on its feet. I know that there will be considerable support, not only from the Northern Territory government but also the Commonwealth in respect to supporting this community. I trust that they will be able to be fully functional as a council, hopefully by February/March 2006.
Last updated: 09 Aug 2016