Attention:
• Treasurer & Minister for Local Govt. Peter Gutwein MP
• Shadow Minister Local Govt, David O'Byrne MP
• Premier, Will Hodgman MP
• Labour Leader, Rebecca White MP
• Green's Leader, Cassy O'Connor MP
Cc: Mayor van Zetten
Mark Baker Examiner
Neil Grose Chamber of Commerce
Reference:
The Examiner and Launceston Chamber of Commerce to host mayor forum
Dear, Treasurer Peter Gutwein et al,
At the public meeting organised by Launceston's Chamber of Commerce and the Examiner held in Inveresk's Tram Sheds Oct 3 I alerted the audience to Launceston's 'debt level'. Because I've attend most Council meetings in the last four years I have been able to glean that to the best of my knowledge, Council is currently in debt and that the 'functional debt' is in the order of $20Million.
I have been projecting this $20Million figure in my campaigning material for Mayor & Alderman for some weeks now and my estimate has gone unchallenged by anyone at Council until the 'Tram Sheds Forum'. At the end of the presentation Mayor van Zetten announced:
- That my $20Million claim/assertion was wrong; and
- That the actual Council debt was something in the order of $9Million.
How did I arrive at $20Million?
- Firstly, as I understand it Council was offered $9Million to realise the C H Smith development project from your pool of development funds ($60Million); and that
- GM Dobrynsky accepted a further $11Million from those funds, monies that you were managing to enable Tasmanian Councils to bring forward 'already planned projects' that lacked the funds to enable them to proceed expediently; so, consequently
- It was/is public knowledge that Council had borrowed $20Million interest free from the State Govt to be repaid after 5 years,
- Consequently, it can be extrapolated from this scenario that the city is carrying a 'functional debt' of $20Million.
The $11Million was taken up by GM Robert Dobrynszki under SECTION 62 of the Local Government Act as I understand it. Mr Dobrynszki did so before Council had an opportunity to consider the loan or its conditions in ether open or closed Council. When questioned in an open council meeting GM Dobrynszki confirmed that he had secured the $11Million under the provisions of SECTION 62.
Moreover, it is my clear understanding that currently $10.5Million rests in the 'council financials', and that these monies have not been activated, and in a timely context, this situation is noted in the appropriate agenda item. Furthermore, the circumstance and its general implications have been substantiated by a senior council officer.
The situation set out above is my clear understanding of events as they have revealed themselves. Nonetheless, the Mayor challenges my understandings and seeks to undermine my credibility and experience. Furthermore, all too conveniently, the Mayor challenges the veracity of my assessment of Council's somewhat impecunious fiscal position at the end of its term.
At election time this kind of ambiguity is 'absolutely untenable' and especially so given the questions that arise as a consequence of such a difficult debt level that will impact upon ratepayers and that will need to be managed very carefully – possibly beyond the Council's next term.
The first question arising being, does this situation, as it's set out here, represent sound fiscal stewardship? After that there are the questions to do with Council holding 'borrowed monies' in what appears to be some kind of 'slush fund' in waiting for a 'political rainy day'.
Plus, there are a myriad of questions that might well come into play – questions to do with integrity for the most part.
Mayor van Zetten's position becomes more and more problematic the more closely it is scrutinised. The matter is non-trivial and it should be clarified speedily in the context of the election currently being contested in the City of Launceston.
Treasurer, I am now seeking your prompt advice in order that Launceston's residents, ratepayers and other voters can be well and appropriately informed when they vote.
Yours sincerely,
Basil Fitch
Candidate for Mayor & Alderman
City of Launceston Council
Basil Fitch, 5 Waveney Street South Launceston
At election time this kind of ambiguity is 'absolutely untenable' and especially so given the questions that arise as a consequence of such a difficult debt level that will impact upon ratepayers and that will need to be managed very carefully – possibly beyond the Council's next term.
The first question arising being, does this situation, as it's set out here, represent sound fiscal stewardship? After that there are the questions to do with Council holding 'borrowed monies' in what appears to be some kind of 'slush fund' in waiting for a 'political rainy day'.
Plus, there are a myriad of questions that might well come into play – questions to do with integrity for the most part.
Mayor van Zetten's position becomes more and more problematic the more closely it is scrutinised. The matter is non-trivial and it should be clarified speedily in the context of the election currently being contested in the City of Launceston.
Treasurer, I am now seeking your prompt advice in order that Launceston's residents, ratepayers and other voters can be well and appropriately informed when they vote.
Yours sincerely,
Basil Fitch
Candidate for Mayor & Alderman
City of Launceston Council
Basil Fitch, 5 Waveney Street South Launceston
Basil Fitch fitchbasil2@gmail.com
