In the business world organisations operate at the management of shareholders. Shareholders divest their decision making powers to a Board of Management. For the residents and business operators of Maitland we are essentially the shareholders who elect a board of management in the form of councillors. A council runs to an operating budget and needs to be managed as an effective business but it also must play its part in ensuring these business decisions have sound social economic currency.
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This is a tough balance that must be maintained and evidence of this is the Maitland Council’s special rate variation. We are in the middle of a strategic 7 year rate rise regime that will effectively ensure the financial viability of our regions council into the future. A tough hit to the hip pocket but one that is needed to balance the economics of ensuring we receive the level of service required in our growing city.
Economically sound decisions and implementation to ensure long term viability.
The Maitland Business Chamber is proud to have successfully partnered with the Maitland Council on a number of projects and we believe that our council has done a great job in creating the most conducive environment in our region to do business.
The Maitland Council has been pivotal in the revitalisation of the city centre and actively works in other parts of the city to activate opportunity for local business.
At this point I don’t have the knowledge to comment on the effectiveness of the Dungog Council in producing an effective business environment for local business, but my concern is how effective a merged council could be for all business operators in the greater region.
Would a merged council with greater budgetary issues and effectively a lower income stream that comes from the 4 year rate rise moratorium on residents of Dungog in the current proposal mean that the new entity has less chance to achieve the required goals? If this happened in business, shareholders would not be happy as I believe ratepayers will be displeased if the merger continues under its current course.
Our research also has indicated that perceived efficiencies generated by duplication of work, and therefore a rationalisation of the workforce will not come to bear. NSW legislation for a shire such as Dungog has failsafe’s in place to ensure the current number of staff is maintained. But this doesn’t take into consideration where the staff live. If someone travels from Maitland or even outside of the Maitland LGA to Dungog for work and in the new entity it is more effective for that person to operate out of Maitland office, under the current merger deal then that head count must be replaced at Dungog.
The review which is currently available on the Maitland Council website highlights a true cost of $9.3 million dollars due to a raft of shortfalls within the proposed plan set out by the State Government.
If this was the case in the private sector the businessman would negotiate a better deal or walk away from the merger.
It is the stance of the Maitland Business Chamber that we need to see revision from the State Government if the option of no merger is off the table. The structure of the incentives need to be reviewed. There needs to be mechanisms in place to ensure that the business of operating a merged council are not starting from a position of weakness.
As president I encourage any chamber members that are interested in making formal submissions to do so and also to ensure you register and attend the Public Inquiry on April 7.
You must register via the website councilboundaryreview.nsw.gov.au
Shareholders of Maitland Council it is time to be heard.