REPORT #1: Costs and Governance

Dear LCC Network,

RE: Launceston Council Costs and Governance Report #1

You asked our evaluation group to form an opinion regarding the meaning and actions of the Launceston City Council in relation to the professionalism, or otherwise, of its governance and operations, and the extent to which ratepayers monies and property could be at risk. Our general conclusions and thoughts on this matter follow.

From the correspondence and articles provided, it appears that it would be easy to misconstrue what issues are being faced by the wider community, particularly those connected to Launceston Concerned Citizens (LCC). 

The council appears focussed on process and protocols, whereas ratepayers are concerned with excessive rates and a lack of control over council affairs, which leads to apathy and cynicism.

Our interpretation of the GM's recent invitation to submit concerns directly to him, is therefore in the context of long standing concerns about the apparent lack of Council communication with ratepayers, secrecy and actions of Aldermen, and the vague and unclear financial reports that combined deliver, an impression of unprofessional conduct in many domains.

Launceston Council expends $100 million per year yet provides little detailed information to satisfy rate and taxpayers that waste, corruption and poor governance are not contributing to a situation in which rates keep rising.

In addition the Mayor and Aldermen appear to:

• point to the management as being responsible for just about everything;
• pass any governance and other queries to management;
• fail to deal with legitimate concerns of ratepayers and business;
• publish budgets that have far too little detail to allow informed scrutiny;
• act in ways that appear both secretive and in violation of Council's own standards (e.g. values);
• fail to assure that detailed information about expenditures is easily available;
• fail to show in what way the Aldermen are assuring probity and value from the monies spent;
• avoid responsibility for what Council is doing;
• fail to keep costs (and rates) under control, and in general

fail to demonstrate that they are earning their salaries, providing value for money or providing governance.

Such actions threaten democracy by failing to inform voters what is happening and why, thereby preventing voters from making informed choices.

For the General Manager to write such a letter to a ratepayer implies some set of rules regarding public communication with Council, plus yet another failure of the Mayor and Aldermen to work with ratepayers. It would help a lot to know what rules exist for ratepayers to gain information from council. Perhaps the General Manager can provide a copy?

The amount of secrecy coupled with failures to provide minutes and other key records of Council business has grown to become a major problem in understanding what Council is doing. 

One interesting example is that one might imagine that the Council would promote the qualifications and knowledge of the General Manager to whom they appear to delegate everything, yet those matters are held as confidential, as if there were something to hide!

Similarly one would expect the Council to promote the value that is being provided for rates, and to demonstrate fiscal accountability clearly and concisely. That these outcomes do not seem to be achieved is just another cause for suspicion and concern.

The entire Council approach creates doubt by failing to provide the quality and frequency of information that one might expect of a $100 million a year operation.

Clearly management cannot be responsible for all of these governance issues otherwise there would be no need for a governance group like the aldermen. In fact the managers are functionaries whose roles and boundaries are clear. It is the aldermanic group that  should be gathering public information and support.

Hence we would like to ask of the General Manager, as suggested by him to you in his letter, the following...

"How can the community achieve a situation where the Council sticks to its own stated values and plans, and reports honestly and openly to the community so that they may both understand how their money is being spent and what the objectives of those expenditures are;  all so that we in the community can make more informed choices at elections and other times?"

We, along with other members of the LCC, would greatly appreciate an answer to that question.

Thank you,

LCC Panel on Launceston Council costs and governance.