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Cost blowout needs a ceiling

Posted on November 27, 2009, 9:09am

In terms of hitting the public’s hip pocket the main corner project has the capability of producing one of the biggest budget blowouts this city has seen.

The community was originally told the main corner project would cost $5m, funded by the Federal Government at no cost to the ratepayer.

In the months prior to the final design decision there were numerous letters to the editor urging council take a much more cautious and cost-effective approach by simply extending the Cave Garden to the edge of the main corner.

It is interesting to note that when the late mayor Don McDonnell and his council decided to purchase the property back in the 1990s, Mr McDonnell telephoned the then Grant District Council chairman Rory McEwen, along with other community leaders, seeking their views on the plan.

Mr McDonnell told Mr McEwen his “vision” was a simple, cost-effective plan which involved demolishing the “lean-to” (old RSL building), as Mr McDonnell called it, leaving an open space area.

There was no plan for an expensive tower or architecture.

It has moved a long way from its original concept, costs appear out of control and ratepayers face a large public debt if government funds aren’t forthcoming.

The main corner plan, originally to cost $5m, has blown out to $6.8m, although council claims it has cut costs to $6.35m.

At least two councillors fear it might blow out to $7.35m.

When the budget blow-out was first revealed by the quantity surveyor, council claimed it was not possible to arrive at a final budget because tenders had not been called and until that occurred the actual cost would not be known.

It has now been revealed council will not call tenders, but appoint a builder/manager who will sub contract work as required.

Like many in the community, Crs John Kyrimis and Jim Maher are concerned there will be additional costs and a further budget blow-out.

Council claims it can maintain tight financial control.

However, by using this non-tender process it has put itself under enormous pressure to contain costs.

The project has tarnished council’s crown of being a sound financial manager.

The main corner project costs overrun of at least $1.35m, but possibly $2.35m, is likely to be funded through the public purse.

Council must act responsibly and has a duty to ratepayers to place a ceiling on its main corner spend and guarantee it will not exceed that amount.

It should stop the open cheque book mentality and a ceiling should be set.

GRAHAM GREENWOOD

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Comments

2 Responses to “Cost blowout needs a ceiling”

  1. Peter P on November 28th, 2009 3:32 pm 1

    Wholeheartedly agree Graham.

    This sort of rubbish happens every time this incompetent council decide they’re going to do a project.

    Don’t think it’s going to stop here though.

    We still have a decrepit railway corridor for them to blow a budget on.

    If there’s any money left over after they waste it all on fighting for the ridiculous pine tree on Lake Terrace.

  2. Pyrrho on December 6th, 2009 7:05 pm 2

    Headline news;
    “Border Watch mixes metaphors, pedants outraged”.

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