Laverton shire writes off more than $300,000 of mining company’s outstanding rates

Headshot of Carwyn Monck
Carwyn MonckKalgoorlie Miner
Laverton shire president Patrick Hill.
Camera IconLaverton shire president Patrick Hill. Credit: Anneke de Boer/Kalgoorlie Miner

A Goldfields shire has chosen to write off more than $300,000 of debt owed by a mining company for unpaid rates over many years.

Shire of Laverton councillors voted unanimously to write off $312,112 of outstanding rates owed by Australian Potash during Thursday’s council meeting.

The company went into administration on December 6, and the council was recorded as a creditor against Australian Potash with $343,342 of outstanding rates noted.

On May 10, the council received $27,316, at 7.96 cents in the dollar, which left an outstanding rate amount of $319,112.

To cover the write off, councillors voted to transfer $400,000 from a reserve titled Lake Wells Road Reserve (Australian Potash) into the municipal account.

Shire president Patrick Hill said while the council “did not want to” write off the debt, they (council) were “not left with much choice”.

“They (Australian Potash) have pulled back on all of their plans,” he said.

“We had that money in reserve set aside for roads … so we pulled that out to compensate for the rates that we lost.”

Cr Hill said the council is waiting on insurance assessors to provide a damage assessment of the shire’s road network caused by heavy rain experienced in March.

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