Every local paper has an article on our roads, a very sensitive issue particularly in the Halliday’s Point area. Each time the roads issue is mentioned we are “informed” of the likelihood of a rate variation, that is, an increase in council rates. MidCoast Council are in top gear on this “sales job”. These articles follow on the heels of recent community information meetings from MidCoast Council interim manager Glenn Handford. MidCoast are pushing hard to get the ratepayer turkeys ready for plucking. It is so much easier to raise taxes rather than cutting costs.
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MidCoast Council have a consolidated post-merger expenses budget of $148 million for the year 2016-2017. The merger of councils “sold to us” by State Government promised to deliver cost savings, no specifics. The recent projected MidCoast Council savings in this current year is $3.6 million, a paltry figure. Glenn is quite proud of this saving considering the State Government put a freeze on the reduction of merged council staff.
If this was private enterprise merging three business together, there would be at least, a one-third reduction in staff and that reduction would take place immediately. MidCoast staff costs are one-third of the total expenditure. The ratepayers are wearing the cost of this State imposition. At the time of merging, the three Councils had a combined 650 head-count. No more than a handful of positions have been made redundant. The cost to the ratepayer for this excess staff is $16.8 million per year, $50 million over the first three years. Even after three years, should Council take steps and reduce staff, it would take another three years to achieve a one-third reduction, costing the ratepayers an additional $25 million. Ironically MidCoast Council’s ten-year budget shows a 36 per cent increase in staff costs. There is obviously no intention to reduce staff numbers. So the annual excess staff cost will continue indefinitely. So much easier to go for a rate variation rather than cost reduction.
MidCoast Council has two options. Glenn Handford, appointed by State Government should go back to his puppet-masters and have them rescind the freeze on staff reduction. Failing that, the State Government can make a $75 million grant to MidCoast Council to directly fund infrastructure.
The ratepayers need to witness proper management of infrastructure and not a continuation of the years of incompetency from the defunct Greater Taree City Council. After MidCoast Council have done their proper homework on cost reduction, then they can come back and talk rate variation. No wonder Glenn Handford wants to pluck the turkey.
Mike Deignan, Halliday’s Point.
