Sunbury to remain with Hume Council as auditors tally costs of split

UPDATE: LOCAL Government Minister hits back at Matthew Guy saying Liberal Government sold ‘people of Sunbury ‘a complete myth’ on consequences of split from Hume.

n25mt204 Official opening for the Watervale Shopping Centre in Taylors Hill. Keilor MP Natalie Hutchins.

LOCAL Government Minister Natalie Hutchins has hit back at Opposition Leader Matthew Guy’s suggestion that the government has been playing politics over the Sunbury Hume split.

Ms Hutchins said it was the Liberal government who’d “sold the people of Sunbury a complete myth”.

The spat between the two MPs erupted after Ms Hutchin’s announcement earlier today that Sunbury would remain a part of Hume Council, ending more more than a month of speculation after independent transition auditors Frank Vincent and John Watson recommended the split not go ahead.

They had cited problems with financial viability, service reductions, infrastructure delays and potential rate rises of 14 per cent as arguments against the split.

Hired to review the separation process given the green light by the former Liberal government, the auditors also deemed a proposed split of council assets and liabilities “inappropriate”, including a suggestion that a share of payments received from Melbourne Airport in lieu of rates be cross subsidised to the new council for 10 years.

Mr Guy slammed the decision to scrap the separation plans.

“Let’s be frank and upfront. (Labor) have lied to the people of Sunbury; there is no other way to put it.”

He said the auditors’ report was designed to “scuttle” the proposal.

RELATED: Opposition Leader Matthew Guy labels Sunbury out of Hume Council audit process a ‘hoax’

“Labor just looked for reasons to break their promise,” Mr Guy said.

“It’s all about playing politics.”

He said a newly elected Liberal government would give Sunbury its own council as “an absolute priority” and that the Opposition’s previous term in power had been used to undertake preparatory work studies to set the course for amalgamation.

But Ms Hutchins said the former state Liberal Government had made a mistake on the Sunbury proposal.

“Because his government failed to do basic due diligence, the residents of Sunbury would have faced 14.5 per cent rate rises, a cut to their service and a basket case of a council” she said.

“Matthew Guy should stop being so angry and just admit that he and the previous government made a mistake. Instead, he wants to condemn the residents of Sunbury to higher rate rises and fewer services, just to save face.”

Sunbury Residents’ Association president Bernie O’Farrell said he was not surprised by the the Labor Government’s decision, announced this morning, to scrap Sunbury’s separation from Hume. .

“She (Natalie Hutchins) got the report she wanted and it’s not a surprise because she the got the outcome she wanted,” Mr O’Farrell said.

“It all comes down to politics - the Labor Party has never supported the separation of Sunbury.”

RELATED: Sunbury split from Hume looks over as auditors pour cold water on plan

But Mr O’Farrell said the campaign to separate Sunbury would continue.

“We will be encouraging people to support candidates in the next state election who support the separation of Sunbury and as it stands the Opposition under Matthew Guy is one party which has stated just that.”

Veteran Hume councillor Jack Ogilvie - who has just returned to council duties following an approved leave of absence after suffering a severe stroke - and councillor Jack Medcraft were disappointed but not surprised with the State Government’s announcement.

“At least (the minister has) put the people of Sunbury out of their misery,” Cr Medcraft said.

“I think the end result is that it does question the process of democracy.”

Cr Ogilvie said he was disappointed “that the minister couldn’t see through the flawed (KPMG) report”.

Cr Ogilvie said developer contributions, as well as Sunbury’s rapid growth, hadn’t been taken taken into account.

“The whole thing was just a total joke,” he said

Fellow Hume councillor, Ann Potter said the uncertainty created by the secession debate had amounted to “two and a half years of wasted time”.

But she said today’s announcement meant Sunbury could now get to work on projects, including a new Global Learning Centre.

“We’ve had to hold off on projects because of the uncertainty,” Cr Potter said.

“It’s been so disappointing that we haven’t been able to move forward.

“Now that there’s finally been a decision we can hit the ground running.”

She said she would have regretted the things Sunbury may have missed out on if the separation had gone ahead.

Ms Hutchins visited Sunbury to make the announcement today.

Sunbury’s separation from Hume looked set after a voluntary poll in 2013 which saw the majority of voters in favour of secession.

The new council was gazetted by the Liberals in October last year with an expected start date of July 2015, but that was pushed back 12 months shortly after Labor was elected.

RELATED: Sunbury split from Hume Council delayed one year

RELATED: Bernie Finn warns of ‘open revolt’ if new State Government reverses Sunbury split decision

Now the government has reneged altogether on a guarantee made by then Opposition Local Government spokesman Richard Wynne to “stand by the decision to separate Sunbury out of Hume”.

RELATED: State Government signs off on new Sunbury Council interim CEO, administrator

Cr Jack Medcraft is not surprised at the State Government’s backflip. Picture: Adam Elwood

Hume Cr Ann Potter says Sunbury may have missed out on projects if the separation had gone ahead.

Sunbury Community Progress Group president Alison Cunningham also welcomed the decision.

“Sunbury going alone as a proposition is 10 to 15 years too soon,” she said.

“I think it was a risky and unprecedented move and there were so many conditions added over four different reports to make it viable.

“It’s great we have an absolute decision, it’s good news.

“It will allow business and developers to get on with their work knowing they are working with a well-resourced and experienced council.

“Now projects like the Global Learning Centre and third rail crossing can be considered and acted on without waiting 10 years.”

SPLIT WOULD HAVE BEEN AT SIGNIFICANT COST TO RESIDENTS

Ms Hutchins said the report showed the proposed split would come at a “significant financial cost to local residents”.

She said they had supported Sunbury out of Hume in “good faith” that the previous government had ensured it was a fair outcome for residents.

“Unfortunately that wasn’t the case,” Ms Hutchins said.

“By failing to do the necessary groundwork, the Liberals let down Sunbury and Hume and sold them a proposal that would cost residents too much.”

Ms Hutchins defended the auditors’ integrity, with some members of the community questioning whether Mr Watson, a former Hume Council chief executive and Sunbury resident, had a conflict of interest.

“John’s had a lot of roles in local government and has over 35 years’ experience,” she said.

“He is the current head administrator of Brimbank Council and the fact he is a Sunbury resident was a bonus. I don’t think there was a conflict of interest.”

Sunbury state Labor MP Josh Bull said they had assessed the situation, sought independent advice and acted in the best interests of the community.

“The previous government had four years to do this,” he said.

“Matthew Guy and Bernie Finn had four years to deliver on this commitment, at the 11th hour they gazetted it, and they handed us a basketcase.”

Hume Mayor, Adem Atmaca says the announcement has ended three years of uncertainty for the council.

Hume Mayor Adem Atmaca said the announcement ended “three years of uncertainty” for council staff and the community.

“There were misconceptions in the Sunbury community regarding separation. People were concerned about rate rises and the provision of services,” he said.

“Some (Hume Council) staff didn’t know if they’d be working at the old council or the new council and some didn’t know if they’d have a job at all.

“We did lose staff because of the uncertainty and had difficulty attracting staff.

“My view is that council provides services to all areas of Hume at the same quality, regardless of where people come from, the only difference is there is probably more soccer grounds in Broadmeadows.”