“With Huon Valley unemployment at about an alarming 9%, it is totally inappropriate that the Huon Valley Council should be contracting out its employees to do work on State Government roads,” says Peter Coad.
“If this has been happening, which I believe is the case, the practice is costing jobs for Huon Valley contractors. Clearly, private contractors are at a significant disadvantage because they do not have the benefits that the council has of using rate revenue to pay workers’ wages and to buy and maintain its plant and equipment.
“It would be good to know if council’s current policy complies with National Competition Policy (NCP), or if council is even aware of NCP,” he says.
“Serious questions need to be asked about why council is using its own workforce to take work off local private contractors. There are two possible reasons: (i) council has more staff than it needs to carry out its own infrastructure program; or (ii) council needs to raise revenue to cover its high wages bill.
“If contractors are able to compete on an equal basis,” says Mr Coad, “there are many with employees and equipment that can efficiently and cost-effectively undertake the work council is doing. Mr Ross Pettit said his company has been concerned for some time. My company has the equipment but cannot compete on the same basis as the HVC he said.
“There needs to be tighter controls to prevent councils competing with the private sector and using ratepayer funds to sustain their often inefficient models.
“A state infrastructure plan that involves both local and state government is required. We must be more innovative in how we maintain and grow Tasmania’s infrastructure requirements.
“The Huon Valley Council, and local government generally, in association with the State Government, should review this important issue if we are to provide real economic benefits to the state and to the Huon Valley in particular,” says Mr Coad.
Peter Coad MVC Candidate for councillor and mayor, Deep Bay, Cygnet
