City of Melbourne appoints new CEO, as consultants, speakers cost ratepayers millions

Melbourne City Council has appointed a new boss, with chief executive Ben Rimmer leaving next month after nearly four years in the $460,000-a-year role. It comes as the council’s excessive spending on consultants comes under the spotlight.

Melbourne City Council has a new boss.

It has just appointed Justin Hanney as new chief executive.

Mr Hanney is Lead Deputy Secretary, Economic Development, Employment and Innovation in the state government.

He replaces Ben Rimmer, who will leave the City of Melbourne next month after nearly four years in the $460,000-a-year role.

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Outgoing City of Melbourne chief executive Ben Rimmer.

Mr Hanney’s Linkedin account says his portfolio encompasses economy-wide work to attract and facilitate international and domestic investment, grow employment and expand Victoria’s offshore trade.

“Justin oversees an operating budget of over $1.5 billion and has accountability for approximately 2,500 staff.”

Justin Hanney is Melbourne City Council’s new chief executive.

Lord Mayor Sally Capp said that Mr Hanney had started his career as a youth worker in Collingwood and has also worked with some of the largest firms in the state.

“Our CEO recruitment process was very robust and thorough. Justin was chosen from an extremely strong field of more than 140 candidates,” the Lord Mayor said.

“We are delighted he will be leading our organisation at a critical point in our 160-year history.”

Mr Hanney, who will start the job in mid-January, said he would like to thank the Lord Mayor and Melbourne City councillors for their confidence in appointing him as CEO.

“As a long term resident of the city, I know and respect the City of Melbourne for its complexity, richness, diversity and inclusiveness. I believe there is no better city in the world to lead,” Mr Hanney said.

“I am eager to begin working with the councillors, executive and officers to continue delivering the tremendous work for which the City of Melbourne is renowned.

A Melbourne Knowledge Week event.

“In endorsing and appointing me as the CEO of the City of Melbourne, the councillors have entrusted in me the leadership and responsibility of the organisation. The importance and prominence of this leadership role is one that I will not take for granted.

“To the staff at the City of Melbourne, who I have no doubt will be taking great interest in this appointment, I look forward to meeting and working with you.

“Finally, I would like to acknowledge outgoing CEO Ben Rimmer for his contribution to the city and I wish Ben and his family all the best going forward.”

Mr Rimmer cited the investigation into sexual harassment allegations against former lord mayor Robert Doyle as a key reason for his decision not to seek an extension of his contract.

It comes as Melbourne City Council has spent more than $50 million on consultants in recent years, including speaker fees for Moomba, Town Hall organ recitals and marketing costs.

Ratepayers paid $16 million in 2017-18 — a $2.8 million jump on the previous year that was blamed on higher legal fees.

These included $700,000 for the investigation into sexual harassment allegations against Mr Doyle, and $1.2 million for representation at panel hearings for projects including the West Gate Tunnel.

Moomba Monarchs Chrissie Swan and Jimmy Giggle share their throne with a Chinese dancer. Picture: David Caird

Other consultancy costs for last year included $3 million for marketing and promotion, $2.5 million for strategy and place initiatives such as the Urban Forest Fund and Melbourne Knowledge Week, and $1.5 million for planning and building costs such as tribunal hearings and heritage advisers.

The council said $2 million was spent on consultants for events, performances, artists and speakers for things like Moomba, Docklands Festival, Yirramboi First Nations Festival and organ recitals.

In March, ratepayers stumped up $2329 for Sydney to Melbourne airfares for the Moomba Ambassador and the Moomba Monarch manager, according to the council’s travel register. This was in addition to consultancy payments.

Other travel on the register included $5697 for airfares for a speaker from the US state of Vermont to attend a Carbon Neutral Cities Alliance event in Melbourne in February-March this year.

In total, the council spent $53.7 million on consultancies over the past four years.

“Melbourne City Council’s extravagance is yet another an egregious example of indulgence by Town Hall fat cats,” said Evan Mulholland, of free market think tank the Institute of Public Affairs.

“Ratepayers expect Melbourne City Council to be prudent stewards of the money they fork out. If they can afford to increase expenditure on consultancies by $2.8 million (in a year), then they should be able to afford an equivalent rate cut.”

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@JMasanauskas