The Victoria Daly Council, based in Katherine, has taken the unprecedented step of refusing to pass its budget as a protest over government funding cutbacks.

The NT Government today gave the council a Monday deadline to pass its budget or face the consequences.

Community Development Minister Gerald McCarthy said there would be no negotiation on further funding with Vic Daly until it backed down.

“The council must pass their budget and declare rates by July 31 to do the right thing by the people they represent and ensure they are in a position to provide important services to their communities,” Mr McCarthy said.

Mr McCarthy said he had issued an order to Vic Daly to comply.

“It would be highly irresponsible of the council to create a problem of this magnitude and I have issued a rectification order in order to see the budget passed,” he said.

Vic Daly mayor Brian Pedwell said his council was willing to risk its own sacking, as has happened to Palmerston, and “knew what it was doing” when it voted last week to refuse to pass its budget.

“We have just been told we have to wear another $800,000 cut, well we are not going to do it,” Mayor Pedwell said.

He said even with a 15 per cent rate rise, a cut in councillor pay and other cutbacks, there would be still be large job losses, especially in remote communities.

“We have had a gutful.

“I don’t care if we are sacked, if the NT Government want to come and get the keys, they can take over and make this work.”

Minister McCarthy today said in a written statement that Vic Daly had not been able to clearly explain their need for additional support, despite being asked on a number of occasions.

“In 2016-17 they had an operating surplus of $2 million and substantial cash reserves. Based on this information there should be no need to cut any jobs or services,” he said.

“Expert advice and support is available to assist the council to comply with the July 31 deadline, as required by the Local Government Act, but councillors must provide an approved budget before any further negotiations for government support could formally commence,” he said.

“Since the CLP split the Victoria Daly Regional Council to create the West Daly Regional Council , the Victoria Daly Regional Council has received Budget Assistance Grants approaching an additional of $7 million over the last four years, with a further $1.3 million committed this year.

“These Budget Assistance Grants were provided on the understanding that council would take time to transition to normal operations, stabilise costs and review business practices. The grants were not on-going and were only offered to each council on the condition they implement measures to reduce costs or increase revenue. 

“The failure to pass a budget by a council would have a serious detrimental impact on everyone living in the council area and on the new council formed following the August election. 

“The door is open to the Victoria Daly Regional Council and with 31 July quickly approaching, I strongly encourage them to fulfil their responsibilities in the best interests of the people they represent,” Mr McCarthy said.