Wednesday, July 22, 2009

NEWCASTLE COUNCIL CONGRATULATES ITSELF FOR SAVING $57,272 AFTER THOWING AWAY $4.63 MILLION!!

THE FOLLOWING LETTER WAS SUBMITTED TO THE NEWCASTLE HERALD TODAY:

The Herald’s and Cr Sharpe’s claim (H, 23/7) that Council saved $66,000 on a tender to remove trees in Mayfield was incorrect. The saving was $57,272 and private sector quotes widely ranged from the winning $23,228 up to $62,500.Thereport was confidential, away from public gaze.
Prima facie, it looks like a good result for Council. However, cheaper quotes don’t necessarily imply that the job will be done better or even as well. And public sector work practices are supposed to reflect industry leadership which can cost more.
Perhaps it’s time for a public briefing to councillors on public sector employment obligations.
Weigh this saving against Council’s mind-blowing decision on June 2 to allow a massive 94% discount to multinational company Orica’s obligation to pay a section 94A contribution to the community, as part of a $490 million industrial development at Kooragang. Contributions are meant to pay for provision or extension to community facilities and services.
Council accepted a mere $272,000 for Stockton’s Corroba Oval improvements, when they could have claimed up to $4.90 million. It was the most financally irresponsible, indeed reprehensible decision in my memory. The vote was almost unanimous with only Greens Cr Osborne dissenting.