Letter to Minister Hoenig

The Hon. Ron Hoenig MP

Minister for Local Government

We write to you regarding the recent public statements made by Kiama Council in relation to their sale of Blue Haven and other surrounding matters showing a complete disfunction of the council.

Council have flagged that they have sold the aged care service to a for profit provider Hall and Prior Aged Care, and that this has occurred at a value significantly under the value of the service. The union has been notified that the sale price is significantly lower than expected and will be at a serious loss when compared to the, over $100 million to develop the site. Not only is this a serious detriment to the community through the undervaluation of the asset, the council has begun a process of blame shifting, blaming the union and their community on the campaign to save the service to be the cause of reputational damage leading to the low amount they received for the sale rather than the council’s own ineptitude.

Further the union has been notified confidentially from senior management staff that the council is proposing a wholesale selloff of other services including their waste services, leisure centres and tourist parks. We have been notified confidential reports seeking support for this wholesale sale of community assets will be put to a council meeting in August for implementation after the council election in September. While selling these services may reduce existing debt, it will leave the council destitute of assets and without the ability to raise capital outside of rates. This will also lead to further job losses and an overall collapse of the council’s workforce.

The actions of the council are leading the organisation off a proverbial cliff, and destroying its overall capacity to operate independently. This has been exemplified further with council management referring councillors who have opposed some of these proposals to ICAC, on matters that we know do not meet the standard for investigation by ICAC, this action by Council will incur unnecessary additional costs to Council. To ensure that the Council deflected its incompetence it has gone out of its way by notifying the media of their actions to cause political damage to those who are standing up for their community. This has been made worse with other councillors commenting on the referrals to ICAC and providing information from confidential sessions to the media.

Kiama council exemplifies what a dysfunctional council is and if they are allowed to continue on the current path they are on, they will not be able to operate into the future. This council will become a crisis in the industry before this occurs we implore your office to act on the improvement order and appoint an administrator. Should this s not occur the actions of the council will create a greater problem for your government and for the NSW taxpayers when it is no longer able to operate. We seek an urgent reply within seven (7) days and again, ask that you intervene as a matter of urgency.

Graeme Kelly OAM

General Secretary United Services Union

Gary Vann

Southern Manager United Services Union