Mayor Tony McGrady said he would lobby for the state government to pay general rates when he presented at the Local Government Association of Queensland annual conference held in Mackay this week. 

Cr McGrady said he addressed a letter regarding his concern for lack of payments of general rates to the association last year, after the Department of Health bought about 36 units for its employees in Angela Boulevarde, Soldiers Hill.

As far as the Mount Isa mayor knew, the state government never paid general rates to local councils. 

“The whole thing is in need of a general overhaul,” Cr McGrady said. 

Cr McGrady said a recent response from Local Government Minister David Crisafulli highlighted such a proposal was “not the done thing”. 

The Mayor welcomed government departments buying properties in Mount Isa, because it made it easier to attract employees to the city. 

But the state government should pay the general rates even if it had to increase rental rates for government employees, Cr McGrady said. 

“These tenants still use facilities the council provides,” Cr McGrady said. 

Mr Crisafulli said in a letter addressed to the president of the LGAQ that the state government not paying general rates was “a long-standing exemption”. 

“An equivalent exemption applies to properties owned or held by local government,” Mr Crisafulli said. 

“Removal of the rate exempt status of either unallocated state land or land occupied by the state would not be appropriate.” A Mount Isa City Council spokesperson said the state government owned 369 assets in Mount Isa. 

The council could not easily identify how many assets were owned by each department, the spokesperson said.