Noosa Council Services Organisation Committee Meeting, Tuesday 6 August 2019
Prequel
Being the fly on the wall that I am, I inadvertently overheard a discussion between the Peregian Beach digital hub director and his one-time offsider, now on council staff. Director asked why offsider hadn’t been to the hub recently. Offsider said he was busy with other council business. Director said he’d like to see him at the hub but offsider gave no commitmen.
I might be wrong but I got the impression offsider is no longer interested in the hub. But that’s not surprising now this once vaunted jewel in the crown of a gung-ho, go-ahead Noosa digital industry is now on the ratepayers’ teat as it struggles to survive, its dreams of profitability apparently gone forever.
Present
In the chair was Cr Joe Jurisevic and present were Cr Frank Pardon, Cr Frank Wilkie, Mayor Cr Tony Wellington and, in the gallery, Cr Brian Stockwell. Everone seemed friendly and jolly except mayor Wellington and CEO Brett de Chastel.
Lots of talk, little action on sealing gravel roads
It seems Noosa Shire has 175 km of gravel roads with each kilometre costing an average of $1 million to seal. It’s my observation that the council needs to begin spending more funds on this vital infrastructure instead of seeing it as an easy target for budget cuts. Of course the technicalities of sealing roads was a matter of great knowledge amongst councillors who have not delivered an active upgrade program worthy of the name this term.
Cr Wilkie said bitumen roads needed constant use (implying lesser used rural roads could go hang), Cr Pardon explained there are various seals and we are always looking to reduce costs, Cr Jurisevic said some roads are flood prone and Cr Wellington said it all depends on the budget and the maintenance cost of a gravel road is cheaper than bitumen. Gentlemen, thanks for your expertise.
Meanwhile, the CEO also seemed as unimpressed as I was, looking like an angry ant as he tapped on his computer. Out of all this I gathered that Black Mountain and Middle Creek Roads are priorities for sealing.
Councillors again ecstatic over Peregian Digital Hub
Whenever the hub comes up for discussion, most councillors laud it as the breakthrough for the Noosa economy it was once promoted as being. But this full year report to 30 June showed that their jubilation was as fake as the prospects of this Playford era initiative ever being anything other than a loss leader requiring constant ratepayer subsidies.
Crs Jurisevic and Pardon said they were “very happy” with a “great report” (figuring that, if they gush, they will create a favourable impression in the community). Cr Pardon said it builds social capital. Now, in case you don’t know, social capital is the creation of relationships among people in a community enabling the community to function effectively. Noosa definitely needs this, but I don’t think the Peregian hub is capable. Hub director Chris Boden said they are supporting digital groups which are not just bums on seats
(just as well because there’s not many of them) and that after-school and holiday programs are successful. Cr Wellington asked about start-ups (a founding tenet for the hub) and was told the hub is “talent scouting for new people all the time” and there needed to be economic impact and the building of a resilient economic community with employment opportunities. Now we were in flannel country.
Cr Pardon said there are good prospects and you’ve done well (flannel) and that other councils have failed with digital hubs (oops). I mean, this one only exists on life support from the council. Cr Wilkie, desperate for some good news, asked about internships. The director said the hub is mentoring young people in political science and the environment, mentioning a swimmer who is trying to use advanced technology. I felt the discussion was getting into deep water with this.
Cr Jurisevic decided to cut to the chase and asked if the hub could be cost neutral in future. A staffer said Anthony said the hub forecast a deficit. Cr Jurisevic said he was happy to see kids involved. So we hadn’t cut to the chase at all. Cr Pardon again said social capital is important (he has a new buzz phrase) but it takes time. There was more loose talk of investors needing certainty, sustainability and a ‘culture’.
An attached risk analysis said a “pure technology focus is unlikely to fill the hub in the short to medium term”. That the continuing development of Maroochydore “may draw tenancies and co-workers southward”. That “market tightening may raise competitor concerns from other players”.
None of this looks good for a project that over-promised, was over-hyped and is now trying to backtrack to being a community charity rather than a vibrant community asset. What a terrific outcome for the PlayWell consortium.
Unbelievable capital delivery passes without comment
The mayor noted that the 2019 capital program completion rate had escalated to 97%. The program was then passed unanimously without further comment. I think this was a serious error of judgement. This important financial year result should never be passed without analysis, particularly when the result is a stunning reversal of previous years.
The budget was higher and, through the year, there were many acknowledged difficulties. A capital schedule showed the status of around 150 individual projects and I sensed that ratepayers had been deceived by manipulation of the original budget and were not receiving a faithful picture of the true status of capital works. All up, a pretty disgraceful non-discussion from a pretty enumerate bunch of councillors.
Now a brief look at how other council assets are travelling:
Sunrise Beach Shops. Still lots of vacancies 12 months after the supermarket moved out. The usual ‘gunner’ prospects now in the hands of a ‘consultant’. This mob couldn’t organise a piss up in a brewery.
Noosa Aquatic Centre. Operates at a significant loss, needs refurbishment and faces competition from the new St Andrews swim complex.
Noosa Leisure Centre. Some improvement but still a significant loss making venture.
The J. Revenue growth slowing and it remains a significant loss making venture.
Bicentennial Hall. May have made a small profit. A slightly hopeful note.
Sequel
The agenda for this meeting, which I have greatly summarised here, was too laborious – 19 items which included extensive updates but little analysis, few insights and no legitimate dissection of results. And I might add that the public would be given more opportunity to absorb and understand these presentations if there was live-streaming and archiving of these subsidiary committee meetings – suggested by Cr Jackson’s transparency motion and rejected by the CEO and probably not to be reinstated by her fellow councillors, whose claims to openness they have themselves trashed.
http://statements.qld.gov.au/Statement/2018/9/12/noosa-eyes-the-future-with-the-opening-of-the-peregian-beach-digital-hub Wednesday, September 12, 2018, Tony Wellington: “From today, around 40 people will be employed at the Peregian Beach Digital Hub and that is a terrific outcome for the local economy and for local families.”
Hi John, I’m sorry to say that I couldn’t disagree more with your assessment of the Digital Hub, based on my observations of who I see doing what when I’m there. I think the vision is a bit broader than making the Hub just a vehicle for rental returns. Personally I’m very happy to see council supporting diverse industries so our kids have future opportunities beyond tourism, real estate etc.
Hi Alex, I understand what you are saying. However during the community engagement charrette it was Noosa Council which insisted, that the digital hub was the one non-negotiable element, because it was supposed to fund the precinct. You can’t begrudge people for testing this. Another consideration is that local businesses can get seriously undermined when Council is running a business without the pressures and realities that private businesses suffer.
Don’t get me wrong. I can see there is some good stuff happening and getting a building for this sort of activity is really useful. I agree with you that bringing people together and inspiring a vision beyond tourism and real estate is a good thing. But there is a real danger for local rate payers propping up a costly vehicle and supporting the already privileged or even worse, trying to attract people to move here to make up for a lack of start-ups.
Moving people here usually carries huge emissions a.k.a ‘love miles’ and this is something Council should not promote during a climate emergency. The climate emergency declaration should inform all Council activity. You can’t cherry-pick in an emergency!
Granted it is good for the community but as Bettina infers, can and or should Council support this type of facility?
Yes, that is the question……..should Council support this type of facility? We already support ‘maker spaces’ and more (eg kids holiday programmes, coding clubs etc) at the libraries which are supposed to fulfill some of the functions that the PDH seems to have also taken up. How many times do we duplicate these activities? I question the viability not because I don’t support the place or the concept but because Council sold us the PDH on the basis that it would be at least self sufficient and probably money making. We are now being asked to accept it as a community service (similar to the Aquatic Centre etc) that will cost us into the future.
The J is similar example of something all the planning documents and Council decision making said would be self sufficient but never has been; and there are other examples. How many times are we going to believe Council hype when we know in the long run these places will never be self sufficient. It would be better if they said, as they have said with the playground at Cooroy, this will costs you millions to set up and 1% of the rates base a year to maintain but we as a Council like the idea and we’re imposing this impost on you. That would be honesty, but the PDH was never put so honestly to the community, so now it’s being questioned. I also agree with what Bettina has to say above about Council intervening in a way that subsidises an undermining of other businesses.