The recent change in forestry rate payments has left seven shires in the South West region of Western Australia facing a significant financial shortfall. These councils, which collectively are predicted to lose $325,000 in the upcoming financial year, are warning that the funding deficit could lead to increased rates for local residents or a reduction in essential services such as road maintenance, community facilities, and local health support. As these services are vital for maintaining community wellbeing, the financial impact of this change is set to be felt broadly across these localities.

The shift in payment strategy means that the Forest Products Commission will cease to directly pay rates on state-owned timber plantations to the local councils. Instead, these funds will now be funneled to the state Treasury. This decision is prompting concern among local government officials about their ability to sustain quality services without the anticipated revenue from forestry operations, which have historically contributed to their funding.

In response to the outcry from local governments, the Western Australian state government, represented by Forestry Minister Jackie Jarvis, has indicated a willingness to engage with the affected councils to mitigate the financial repercussions. However, the outcome of such discussions remains uncertain, leading to concerns about how quickly and effectively the state can address the revenue shortfall and its implications for local communities in the Warren-Blackwood region.