Central Coast Council financial crisis: MPs react to suspension of mayor and councillors
Central Coast MPs have reacted to Wednesday’s shock announcement that the mayor (pictured) and councillors will be suspended. Some support the move while others blamed the amalgamation.
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The pending suspension of the Central Coast Mayor and councillors has sent shockwaves through the community.
Local Government Minister Shelley Hancock made the announcement on Wednesday, after revelations council was unable to pay its staff this week due to its financial crisis and looming $89m debt.
It has been just over two weeks since council announced it’s financial disaster, with Ms Hancock giving councillors seven days to prepare a submission as to why they shouldn’t be suspended.
Central Coast MPs have been quick to comment, with Liberal MPs coming out in support of the suspension and Labor MPs calling for more State Government support for council staff.
Central Coast Parliamentary Secretary Adam Crouch said since the announcement, council had hidden behind the “cloak of confidential meetings, rather than representing the community with openness and transparency”.
“It is appalling that council’s financial situation has deteriorated so far that the employment of more than 2000 people is on the line,” he said.
“Our community will also never forget that the mayor and a bloc of councillors awarded themselves a pay rise in the middle of the COVID-19 pandemic.”
Central Coast MLC Taylor Martin gave a speech on the issue in the Legislative Council on Wednesday, describing the crisis as a “logical end point of having a Labor-Greenie bloc dominate council’s management”.
“In possibly the worst example of bastardry ever seen in Local Government in this state, the council passed a motion that said that unless they gained permission to again use restricted funds, Council’s 2,157 staff may not be paid,” he said.
“For the last three years, the Liberal councillors and sensible independents have tried repeatedly to get more financial information, improve budget processes, implement accountability and cut wasteful spending. The reply from Labor councillors – to brandish any suggested savings measure as austerity and label them as neoliberals simply for asking about the finances or how much spending is needed to cover the Labor-greenie thought-bubble motions that come up.”
Central Coast Labor MPs – David Harris, David Mehan, Yasmin Catley and Liesl Tesch – released a joint statement demanding more support from the State Government.
The MPs met with Ms Hancock before she announced the suspension to seek assurances that council workers would continue to be paid.
“Whilst the Minister’s announcement provides some immediate financial relief, the State Government needs to guarantee staff wages while an audit of council’s finances and restructuring occurs,” the statement read.
“The structural problems at Central Coast Council have been apparent for a long time and are a direct result of the failed amalgamation process. The State Government cannot now walk away from its responsibility to support the council it created.”
The MPs indicated they would work with the State Government to secure the council’s future, however also took the opportunity to call for additional financial support from the State Government including all costs associated with emergency erosion protection work at Wamberal and North Entrance in July 2020.”
Robertson federal Liberal MP Lucy Wicks said she supported calls for council to be placed into administration, highlighting millions of grants in federal funding.
“The Central Coast Council in this financial year and last, has received and continues to receive more than $50 million in federal funding for local priorities under the financial assistance grants program.
“The Council is also receiving more than $13 million in federal funding under the local roads and community infrastructure program.”
“Federal funding provided to Councils shouldn’t be needed just to keep the lights on and pay the bills.
“My concern is that the serious revelations about Council’s financial position could potentially deprive our community of much needed future infrastructure upgrades, amenities and services. The people of the Central Coast deserve better.”