POLL DAY 7th February 2015 – IS IT GOING TO BE VIC PARK OR SOUTH PARK?

From “The Maxwell Fish & Chip Wrapper” January 2015 Written by Victoria Park Councillor Vince Maxwell

This is a rare and unusual event and it was only through the hard work by a few residents of the Town that has made it possible for you to have a say. The outcome of this poll is binding on the State Government under the Local Government Act. Many people who live in the Town have migrated from countries where democracy either doesn’t exist or is abused by those in power. Democracy is a fragile thing and needs to be protected. This has been demonstrated in the past where our predecessors were prepared to fight and some gave their lives to ensure we have the freedom we enjoy today – We cannot take it for granted – let our governments at all levels know that we want to maintain our democratic rights by participating in this poll. Politics is the science of living together – although some let the power and responsibility go to their heads, it is no reason for us to sit idly by. We must ensure that our democracy remains strong and not allow any one person on a power trip take it away from us. The ballot package that you have received from the Australian Electoral Commission contains an information sheet that lists the for and against arguments for an amalgamation. This information was provided by the Local Government Advisory Board (LGAB). Unfortunately the arguments put forward are very simplistic opinions that are not supported by evidence.

One argument is that the Town will be more sustainable – however the WA treasuries modelling that was used by the LGAB demonstrates the opposite. The Treasuries own figures show that the Towns current rating of 70, which incidentally is the Ministers preferred minimum level, will drop to 68 upon amalgamation with South Perth. In the future a modest improvement is shown but, like forecasting the weather, the further into the future you look the less accurate the prediction. Conclusion: this claim is unsubstantiated.

Another argument is that a larger local government can employ more expensive staff but is that what we need? The CEO of Victoria Park already earns in excess of $240,000 and senior staff receive over $170,000. Larger Councils automatically pay these staff at a higher rate as this is determined by the State salaries and remuneration tribunal – it is not a free market. The pay scales are set and there is minimal range within each band to pay someone more or less to match their capability. The range is determined by the size of the Local Government. For example larger Councils like Canning and Wanneroo have almost twice as many senior staff and the total Senior staff wages bill is almost double indicating that little will be saved by forming a larger Council. No cost benefit analysis has been done by the State Government or the Town. We are sailing into unknown territory.

Professor of economics and Director of the UNE Centre for Local Government, Brian Dollery, in correspondence with me stated that he agreed with my calculation of the likely costs and concluded by writing “It seems to me that many Perth councils are sleepwalking towards big financial problems stemming from amalgamation.” Former secretary to the NSW Treasury, Professor Percy Allan (AM), in a presentation in October to the Committee for economic development of Australia (CEDA) reported that Local Governments in Australia were quite large by world standards averaging more than 40,000 residents compared to USA 7,981 and the European Union 5,693. Post amalgamation a number of Perth Councils will be over 100,000 residents! 12.5 times the average in USA & 17.6 times the EU! His report continues ….Yet, researchers both here and abroad have found that larger councils do not exhibit lower unit costs of servicing than smaller ones. It has been found that some council functions are done best on a large scale while other tasks are performed better on a small scale. “Smaller units are the most democratic and participative, and also the most efficient.”

Amalgamations in every other jurisdiction in Australia have resulted in higher rates, reduced services, and less representation. If for some reason it was to be different in Perth then the Government has failed to show how. The State government has not provided any financial modelling.

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