Mayor Playford confident Noosa can weather Abbott's storm

NOOSA Mayor Noel Playford is confident his council is big enough to absorb the shock of federal belt tightening without having to increase rates.

The federal Opposition claims the Abbott Government's decision to freeze indexation of financial assistance grants from July 1 would "rob councils of more than $900 million they now use for local road maintenance and the provision of services".

But Cr Playford (pictured) said that was only a very small proportion of Noosa's total budget.

"If the federal assistance grants do not decrease in real terms, then the effect it will have on those that do not rely on it very heavily, like us, is negligible.

"For us it would make less than $100,000 in a $90 million budget," he said.

If there had to be a pause in increasing revenue for councils, the mayor said now was not a bad time to have it while inflation was low.

He also believed the financial resetting was needed and even with the fuel levy indexation rises, every level of government had to learn to live within its means.

"We had a tough budget process at council, but I tell you what, our budget didn't have the structural problems the federal budget's got and they had to do something about.

"Otherwise as a nation we just keep going down, down and down."

Cr Playford said a council review of its telephone connections had already produced a major saving.

"We've we've saved over $100,000 in the last four months just by going through and saying 'that's not needed, this is not needed'," he said.

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