Is the anticipated financial pain of de-amalgamation worth the touted community gain? That's the question Local Government Minister David Crisafulli has posed to rate payers in the Douglas region.

Speaking with The Newsport yesterday, Mr Crisafulli had a pessimistic outlook on the prospects for success of a re-formed Douglas Shire Council.

"In the case of Douglas there will be huge financial challenges and in fact it will be very weak, but there is a prospect, albeit highly unlikely, of creating a separate entity."

Despite the forecast based on economic information provided by the Queensland Treasury Corporation (QTC), Mr Crisafulli was adamant the community should decide on the future of their region.

"I can't, in good faith, deny the community the opportunity to have a vote where that is possible," he said.

"My preference has always been for the amalgamated council to work. I've been upfront about that, the Government has been upfront about that, but at the start of the process we said we'd give every opportunity for people to exercise a vote and weigh up whether or not the financial pain is worth the community gain."

The Queensland Boundaries Commissioner Proposed Douglas De-amalgamation report outlines the financial impact of de-amalgamation for rate payers.

For Douglas, QTC found the initial cost to de-amalgamate would be $8,146,000 (a figure contested by a Friends Of Douglas Shire spokesperson whose submission suggested the cost would be less than half that amount) which would add an extra $701 per rate payer in the first year.

There would also be ongoing costs of an extra $462 per ratepayer every year thereafter, rising with inflation, according to the report.

VIEW THE QUEENSLAND BOUNDARIES COMMISSIONER PROPOSED DOUGLAS DE-AMALGAMATION REPORT HERE

"People will make their own assessment on whether that is affordable, and whether or not they think it's worth the community identity that comes with a separate council," Mr Crisafulli said.

"We don't want them to go to the ballot box with blinkers on. We went to QTC and spoke with some people who not only understand local government but understand finances.

"The brief was clear - don't give us a gold-plated version, give us a like-for-like service. The costs are very high."

Mr Crisafulli was quick to lay blame on the former Labor government for forcing amalgamation on a number of regions within Queensland.

"It's a shame that this argument wasn't had five years ago. Five years ago the cost to unscramble that wouldn't have been there because we had two separate councils.

"But we are where we are, and my role is to try and mop up the blood on the floor that Andrew Fraser (former Queensland Treasurer) left on local government, be upfront with people and say 'these are the costs' and then get them to make a decision.

"One way or another, from March, we're going to draw a line in the sand...we're going to put this to bed and we're going to finally get local government doing the things it needs to do years after Andrew Fraser put them to the sword without any consultation."

Mr Crisafulli reiterated that people should make a decision based only on facts, which will be communicated in more detail over the coming months, despite the passion and emotion of people from either side of the debate.

"I don't want people to wake up the day after or a year after (the referendum) and say 'If only I had known that fact I would've voted a different way'.

"Local people are best placed to control their own destiny, here are the costs, you weigh up whether or not the benefits are there, and here is our assessment of the viability of it.

"That's being as upfront as you can be."

MONDAY ON THE NEWSPORT: Interview with FODS spokesperson Robert Hanan.