Forum –
There has been lots of very interesting insights from the Public Inquiry into Central Coast Council’s financial troubles, which has been described as the biggest financial failure in NSW local government history.
One thing that was missing from the Inquiry was evidence for the members of the executive leadership team (ELT) that were in place last October when the extent of the financial problems first became public.
The only exception was the former CEO.
The ELT is also made up of the CEO and Directors that are on four-year contracts, which are structured such that they are very generously compensated for the lack of permanent tenure.
However, the fact is that many have been in the jobs for a long time.
Notwithstanding the many challenges, there are clearly many questions about the effectiveness of this leadership team and its ability to lead in a fiscal environment that was acknowledged to be difficult right from the start of the amalgamation in 2016.
What steps were taken at a management level to engender a fiscally conservative organisation?
The unauthorised expenditure of $180M in reserve funds and the employment of more than 300 additional staff since the 2016 amalgamation can hardly be passed off as sound management.
In some ways, these members of the ELT are a protected species that have so much influence over the direction of Council but are only answerable to the current CEO.
All past sins under previous CEO are instantly wiped.
One wonders how much of the previous performance appraisals of the members of the ELT have been based on a false understanding of achievement, with conclusions of positive performances underpin by global unrestrained spending on staff, consultants, resources and works.
One is reminded that more than 200 staff have been laid off as part of the measures to address Council’s near bankruptcy through no fault of their own.
In the circumstances, it is suggested that Council should be exercising its right not to renew the contracts for the senior managers who were on the Executive Leadership Team at the end of the 2019/20 financial year.
It is time to commence a rebuilding of the Council from the top down.
Anything less is a slap in the face for the residents of the Central Coast that are now facing increased rates, low services, significant additional debt and a loss of many Council-owned properties.
This loss of property includes the Gosford Council Chambers that no doubt took a generation to fund and other land that would have been invaluable for future uses in this growing area.
One should not forget that unfortunately, in many cases, there is always considerable positioning by senior managers for contract renewals in the lead-up to Council elections and prior to the departing of a CEO or and any upcoming bad news so managers can “lock it in Eddie” for another four years.
Unfortunately, the standard information stream from management will be about what a great job they are doing in the current environment, all the time avoiding the real long-term cost of poor management.
Email, Nov 14
David Kitson, Mardi