Friends of Douglas Shire (FODS) has called on the Cairns Regional Council to provide more detailed financial information about rate income and capital works projections for a new Douglas Shire.

The group, who has been the primary driver for deamalgamation, are also requesting dialogue with Queensland Treasury about those estimates and projections.

Spokesperson for FODS, Robert Hanan, said the "flat refusal by CRC" to provide further details of their financial modelling has become the greatest obstacle to re-establishing Douglas Shire.

Mr Hanan said FODS' estimated cost of deamalgamation is $3 million while Council's estimate was similar at $3.7 million.

“Even if the actual cost is at the upper end at $4.1 million, it will not noticeably affect rates, so that number is not a sticking point,” Mr Hanan said.

“As well, FODS' estimates for total rate and utility (including water, sewerage and waste collection and treatment) increases also aligns closely to the actual figure provided by CRC of approximately 30 per cent, so we are in agreement on that too.

“At odds are firstly the estimate of future capital works required in Douglas, secondly the whereabouts of the $24 million in cash and cash equivalents in the Douglas bank account at the time of amalgamation, and thirdly projected capital works costs of $17 million.

“In summary CRC is saying Douglas, while cheap enough to de-amalgamate, cannot fund the capital works that are required going forward. In other words, while we were rated by QTC in 2007 as highly capable of meeting our future financial commitments this, according to the CRC's calculations, apparently is no longer the case."
 
Mr Hanan said Council has also refused to identify the current cash balance he believes is due to be "refunded" to a re-formed Douglas Shire.

“Given Cairns is proposing to charge a new Douglas $430,000 for deamalgamation costs, refusing to supply basic data they can readily access at minimal cost or effort is nothing short of a disgrace.

“The matter is further compounded by the tight timelines the State is imposing on the process for a decision on whether or not to proceed to a referendum.

"Those timelines would be okay if Cairns would co-operate but we are now concerned the Queensland Treasury Corporation, on whose analysis the state will depend to make decisions, may be forced to accept CRC’s misleading numbers.

Council's Acting CEO Peter Tabulo said that Council has done everything required of them by the Queensland Treasury Corporation.

“CRC has provided financial data as requested by the QTC. At this point, no further information has been requested by QTC. Council will cooperate with the QTC and Boundaries Commissioner in providing any information they require.”

FODS has written to the Minister for Local Government David Crisafulli arguing there is insufficient information to schedule a referendum for March next year, a decision on which will be made in December.

“On the contrary, more work needs to be done to properly understand rate income, capital works projections and the unaccountable disappearance of $24 million,” Mr Hanan said.