Posted 2/6/08

 

2008-2009 BUDGET - Speech by Cr. Tom Gyorffy (cut off by Mayor)

 

THE BUDGET IS ONE OF THE MOST IMPORTANT DOCUMENTS THAT THE COUNCIL PRODUCES EACH YEAR.  IT IS A LIVING, WORKING DOCUMENT.

 

IT IS A DOCUMENT THAT SHOULD BE ADOPTED BY CONSENSUS. THERE SHOULD BE NO DISSENT.

 

AMONG REASONABLE PEOPLE ON A COUNCIL THERE CAN BE DIFFERENCES OF OPINION ABOUT WHAT SHOULD AND WHAT SHOULD NOT BE INCLUDED IN A BUDGET.  IN THE CUT AND THRUST OF BUDGET DELIBERATIONS YOU WIN SOME BATTLES AND YOU LOSE SOME.

 

YOU CAN SUPPORT A BUDGET EVEN IF YOU HAVE LOST SOME OF THE ARGUMENTS, IF THREE PRINCIPLES ARE MET:

  1.  THE BUDGET REPRESENTS A FAIR ALLOCATION OF COUNCIL RESOURCES BETWEEN ALL RATEPAYERS;
  2. IT DOES NOT PLACE UNREASONABLE BURDENS ON RATEPAYERS; AND
  3. IT IS FINANCIALLY RESPONSIBLE.

I REGRET TO SAY THAT I CANNOT SUPPORT THIS DRAFT BUDGET WHILE IT CONTAINS ANY ALLOCATION OF RESOURCES TO THE BUILDING OF THE KYNETON AQUATIC CENTRE.

 

THIS WAS NOT AN EASY DECISION TO MAKE.  NO DOUBT THERE WILL BE ILL-INFORMED SPECULATION AMONG SOME PEOPLE THAT THIS IS JUST GRAND STANDING IN AN ELECTION YEAR.  I HAVE NOT DECIDED WHETHER OR NOT I WILL STAND FOR COUNCIL AGAIN.  THAT ISSUE HAS HAD NOTHING WHATEVER TO DO WITH MY DECISION ON THIS QUESTION.

 

I HAVE MADE MY DECISION FOR THE FOLLOWING REASONS:

  1. I CONSIDER THAT SPENDING THE MILLIONS OF DOLLARS NECESSARY TO BUILD THIS CENTRE FOR USE BY A SMALL PROPORTION OF THE MACEDON RANGES POPULATION IS AN UNFAIR ALLOCATION OF RESOURCES. THIS IS AMPLIFIED BY THE PERMANENT ONGOING MASSIVE LOSSES TO BE MET FROM EVERYONE’S RATES, IN BUDGET AFTER BUDGET IN THE FORESEEABLE FUTURE;
  2. THIS AQUATIC CENTRE IS NOT AN ESSENTIAL SERVICE TO BE PROVIDED BY COUNCIL.  IT IS A LUXURY TO MEET THE DESIRES OF A HANDFUL OF PEOPLE IN THE KYNETON COMMUNITY.  WE HAVE RATEPAYERS ON FIXED INCOMES THAT WILL BE DECIMATED IN THIS ERA OF RISING INFLATION THAT WE ARE EMBARKED ON.  FAMILIES WHO HAVE UNTIL RECENTLY BEEN FINANCIALLY COMFORTABLE ARE NOW VULNERABLE AS THEY HAVE BECOME HOSTAGES TO RISING INTEREST RATES, GALLOPING FUEL PRICES AND SOARING FOOD PRICES.  SADDLING RATEPAYERS WITH THE COST OF THIS PROJECT WHICH WILL TRANSLATE TO RISING RATES IS NOT REASONABLE; AND
  3.  THE AQUATIC CENTRE PROJECT IS AN OPEN-ENDED BLACK HOLE FROM A FINANCIAL POINT OF VIEW.  THE COST OF BUILDING WORKS ALWAYS RISES BETWEEN CONCEPT DEVELOPMENT AND DELIVERY.  IN A TIME WHEN OIL PRICES ARE REASONABLY PREDICTED TO RISE TO $200 A BARREL BY YEARS’ END (UP FROM $80 IN SEPTEMBER 07, WHEN THE COSTS RELIED ON FOR THIS BUDGET WERE CALCULATED), THE PRICE OF THIS PROJECT WILL RISE ASTRONOMICALLY.  YOU DON’T HAVE TO BE NOSTRADAMIS TO SEE THIS.  IT IS JUST COMMONSENSE.

RISING OIL PRICES WILL IMPACT ON EVERY ASPECT OF COUNCIL’S SERVICES.  THE COST TO RUN THE MAYORAL LIMOUSINE, DELIVER MEALS ON WHEELS, CUT GRASS, COLLECT GARBAGE, BUILD ROADS AND FOOTPATHS – EVEN THE USE OF ANY PLASTIC MATERIALS - ON AND ON IT GOES.

 

COUNCILS RAISE THEIR FUNDS A YEAR IN ADVANCE.  THEY CAN’T GO BACK AND GET MORE FROM THE RATEPAYERS DURING THE YEAR IF THERE ARE OVERUNS IN THE BUDGET.  IT IS THEREFORE NECESSARY TO HAVE BUILT-IN A CAPACITY TO JETTISON PROJECTS TO KEEP THE BUDGET IN BALANCE.  IF ONE PROJECT SO DOMINATES A BUDGET THAT THERE IS INSUFFICIENT FLEXIBILITY TO COST-SAVE ELSEWHERE DURING THE YEAR, THERE IS ONLY ONE OTHER OPTION LEFT- TO CUT STAFF. 

 

FOR EVERY MILLION DOLLARS TO BE SAVED, WE WOULD CUT ABOUT 20 FULL TIME STAFF.  OUR STAFF PROVIDE SERVICES, SO WHAT SERVICES ARE EXPENDABLE:  PARKS AND GARDENS, ENVIRONMENTAL SERVICES, ROAD GRADING, INFANT WELFARE NURSES, KINDERGARTENS, THE FINANCE DEPARTMENT?

 

PASSING A BUDGET WITH THIS PROJECT IN IT WILL RESULT IN THIS COUNCIL TYING THE COMMUNITY TO FUTURE BUDGETS WITH NO FINANCIAL OPTIONS – AND, IT FOLLOWS, NO SOCIAL OR ENVIRONMENTAL OPTIONS EITHER.  I BELIEVE IT WOULD BE IRRESPONSIBLE TO DO THIS.

 

THIS COUNCIL HAS SPENT CONSIDERABLE TIME IN BEING BRIEFED ON THIS PROJECT.  MUCH OF THE MATERIAL IN THOSE BRIEFINGS IS SUBJECT TO CONFIDENTIALITY.  ALL THE INFORMATION NECESSARY TO MAKE A DECISION IS THERE.  ALL THAT IS REQUIRED IS THE EFFORT TO ANALYSE IT, AND THE WILL TO MAKE A DECISION.

 

I THINK IT WOULD BE UNCONSCIONABLE TO LEAVE A DECISION ON THIS TO AN INCOMING COUNCIL, TO BE MADE QUICKLY WITHOUT THE ADVANTAGE OF ALL THE WORK THIS COUNCIL HAS DONE.  I ALSO FEEL IT WOULD UNFAIR TO HAVE THIS AS AN ELECTION ISSUE WHEN ALL THE RELEVANT MATERIAL TO MAKE AN INFORMED DECISION IS NOT AVAILABLE IN THE PUBLIC DOMAIN.

 

FOR THOSE REASONS I REGRET TO SAY THAT I CANNOT SUPPORT THIS DRAFT BUDGET DOCUMENT IN ITS PRESENT FORM.