Wednesday, May 09, 2007

John So trims the bone

But leaves the fat on the plate

Melbourne City Council forks out $300,000 in another round of consultants reports to recommend where it should save costs but so as to not be held accountable as to its choice of implementation the menu will not be published

Source:
The Age

There is no doubt that the City Council is overstaffed and over governed. Finances in the City Council are overstretched with John So having raided the Councils reserves on an unchecked spending spree reducing the Councils working capital ratio to the lowest on record.

The City Council is facing a major crisis in the retail sector as the cost of doing business in the City Center soars and customers prefer to shop else where where parking is free and their dollar goes further. The City center is no longer the home of Melbourne entertainment or shopping. Major cultural assets such as the Museum of Victoria have been located at the outskirts of the city centre instead of taking center stage.

The city is facing serious decline as a result poor planning and governance policies undertaken over the last 10-15 years. Rob Adams should either take on more responsibility or be sacked, he has created his own portflio and job description excluding the tasks that he does not want and can not to deal with.

The Council administration has become fat and non-productive. It exist to support itself taxing the life from the city itself. Walk down Melbourne's Swanston Street and you will soon see the quality of retail more $2 junk shops and sex shows then Kings cross.

We have no doubt that the City can and should undergo a major cut back in the top end. Two directorships at least should be scrapped and their functions merged.

The Ernst & Young consultants report should be published. the ratepayers and citizens of Melbourne have a right to know the true extent and recommendation that are before the City Council prior to the City Council doing a butchers hatched job to dress the mutton up as being lamb.




Council rejig to cut jobs
The Age - May 9, 2007


RADICAL overhaul of Melbourne City Council appears certain, after consultants recommended the sacking of at least two layers of senior management in a secret report.

A number of top-level staff — including two directors — are likely to lose their jobs in what is looming as the biggest shake-up at the council in 14 years.

Senior staff today will be given the report on how the council can cut costs — for which consultants Ernst & Young were paid $300,000.

But the confidential document — which contains crucial financial recommendations — will be kept from the public for several weeks until budget negotiations near completion.

Council chief executive David Pitchford last week forced councillors to sign confidentiality agreements before they were given a copy of the report.

The nine councillors were warned they risked being sacked if they discussed publicly any of the report's findings before its official wider release on June 3.

However, one councillor, who spoke on condition of anonymity, has described the report as "a bombshell".

The Age believes Ernst & Young has recommended how the council can cut its costs by more than $5 million.

In part, the report recommends slashing senior staff numbers, which have almost doubled under Mr Pitchford, who is Victoria's highest paid council officer on a salary of up to $396,000.

At least 85 staff at the council are on salaries in excess of $100,000; when Mr Pitchford became chief executive in 2003 there were 46 in that bracket.

Lord Mayor John So last night said: "Like any organisation, (the council) can actively find opportunities to do things better, smarter and cheaper."

The Age believes the report finds the council:

■ Should reduce its number of directors from seven to five.

■ Needs to undergo a structural reorganisation.

■ Should reduce its salary bill by cutting the number of staff paid more than $100,000.

■ Is too reliant on consultants.

■ Should consider farming out some services, including child care, to the private sector.

The likelihood of a major restructure comes despite Mr Pitchford last year reorganising the council to try to make it function more effectively.

The Lord Mayor came under fire last night for allowing the report to be made confidential.

"John So should not allow this sort of thing to go on behind closed doors," former lord mayor Kevin Chamberlin said.

"This is a misuse of the confidentiality provisions of the Local Government Act. It is using the act to hide financial information from the public that will embarrass the council."

A second councillor told The Age the Ernst & Young consultants had "identified some very serious inadequacies within certain departments".

"It implies what a lot of us have been wanting: a shrinkage of directors," the councillor said.

Mr Pitchford last night defended having spent $300,000 on the report.

"This is not a public review," he said. "It is for internal purposes. The report will remain confidential until its findings and recommendations can be fully assessed."

Thursday, April 26, 2007

Many questions no answers

Only self indulgent existence

John So could question why the Melbourne City Council even exists when it is such a self-indulgent, expensive and indecisive organisation whose Town Hall offices would be better used as a boutique hotel. - Neil Mitchell, Melbourne.

Wednesday, April 25, 2007

Saving Money the Hard Way

$250,000 in consultants fees to tell Melbourne's $400,000 CEO how the City could save money

Melbourne $400,000 dollars man spends $250,000.00 seeking advice on how to manage the City. (I thought that was why we were paying him such a hugh salary)

Clay Lucas of The Age exposes the extravagant waste of money consumed by Melbourne's highest paid public servant.

David Pitchford's contract was recently renewed by the City Council who whilst voting to extend his contract cut-back the term of his appointment which is normally for five years to just over two years.

Information and talk around the Town Hall is that David Pitsford is actively looking around for alternative employment but like that of his predecessor, Michael Malouf, he options are limited along with his management skills.

David Pitchford was also implicated in the Parking Fine affair that resulted in the State Ombudsman raiding the Council Offices in order to secure information on the cover-up of corruption in the Council's administration. The City Council rewarded David Pitchford for his efforts by paying him a substantial performance (sic) bonus.


Council CEO forks out to save
Clay Lucas The Age April 25, 2007

VICTORIA'S highest-paid council officer has spent more than a quarter of a million dollars on management consultants — to tell him how to save money.

Melbourne City Council chief executive David Pitchford, who last month was reappointed on a salary of up to $396,000 a year for almost three years, has overseen a $300,000 cost-cutting report by consultants Ernst & Young.

Councillors said yesterday that cutting spending on child care was likely to be an area of focus for the consultants, who will release their report next week. Retrenching some of the council's 1131 staff may also be considered in the wide-ranging cost review.

Councillors asked why so much had been spent on consultants and the time of the council's senior directors (at least six of whom are on $200,000-plus salaries) to do a review for which the chief executive should have taken responsibility.

"He does not like to take tough decisions," said Cr Peter Clarke. "He likes to have a report by someone else to fall back on."

Mr Pitchford, rehired unanimously by the city's nine councillors in March on a salary of $332,000 and an annual bonus of up to $66,000, wants Ernst & Young to find where savings can be made within council.

Their brief requires them to find savings in council spending, assess the "value for money" of council services and find ways of reducing labour costs.

The firm is also the council's internal auditor, a contract worth $580,000 over three years.

The management experts are the latest in a string hired by Mr Pitchford to instruct him since he was manoeuvred into his position by Lord Mayor John So in September 2003.

In 2004, the council paid $45,000 for consultants to tell staff they should work according to a new acronym: ERIC, which stood for excellence, respect, integrity and courage.

The following year, Mr Pitchford paid Royce Public Relations $52,000 to recommend the council hire a new PR boss; they got media manager Hayden Cock for $220,000 a year.

During his own rehiring process in March, Mr Pitchford oversaw spending of $4000 on human resources consultants Mercer.

They came back with a report recommending that his annual salary should rise as high as $492,000, but that $410,000 was an acceptable midpoint. The council settled on $332,000.

Mr Pitchford was on leave yesterday, but council finance spokesman Brian Shanahan defended Mr Pitchford's decision to commission the cost-cutting review.

"The common practice is to get independent reviews done to assist decision making," he said.

But councillors would resist reducing spending on child care, regardless of the report's findings. "There is no way we should pull back on our commitment to child care."

If Ernst & Young does recommend reducing spending on child care, it could be a case of life imitating art: in the 2001 ABC TV show Grass Roots, the fictional chief executive of Arcadia Waters Council called for a consultant's report to justify privatising child care.

Thursday, March 29, 2007

NSW Election

Avalanche of complaints against Electoral Commission that people were denied right to vote

Reports are coming in thick on NSW talk back radio with many people ringing in an complaint that they have lived at the same address for years and they were denied the right to vote.

Colin Barry, Victoria's past Electoral Commissioner came under fire in an interview on NSW Talk back radio. Mr Barry's Track record in conducting public elections is not the best. Mr Barry was Chief Commissioner in Victoria when the VEC introduced electronic counting of ballot papers. He was created at the time for not ensuring that the system that was put in place was subject to proper scrutiny.

Mr Barry refused to provide scrutineers copies of the preference data files used to determine the results of the election. Without access to this information it was impossible to verify the results of the electronic count. Mr Barry fallaciously claimed that the computer system used by the VEC could not produce copies of the preference data files.

It was only following a complaint to the State Parliament that the software in use by the VEC did not meet industry standards that Mr Barry all of a sudden realised that the software did in fact provide a means to extract this information. Copies of the preference data could be copied on to a diskette and take approximately 2 mins to copy.

There were a number of other issues of concern related to the Victorian electronic count system that was left wanting not the least the time and resources to undertake a computerised count of a single member electorate was significantly greater and less open and transparent then if the election was counted manually. Raising the question why were computers used to count the election results. Answer Boys with new toys.

Mr Barry resigned from Victoria and took up a position in the NSW State Government as NSW Electoral Commissioner.

State election Under Review

The Parliament has just announced its review of the 2006 State Election

The Victorian State Government has just announced that it has set up joint house inquiry into the Victorian State Election.

The committee will be calling for written submissions next week and is expected to conclude its enquiry and report back to the State Parliament after June 30, 2007

There are many issues that we have identified in relation to the conduct of the State election not the least issues related to the VEC failure to publish copies of detailed results of the election (Including polling place results for the Victorian Legislative Council - The media will come in for a bit of a serve here).

In addition issues of serious concern in relation to
1) the lack of full certification of software used in the conduct of the election
2) members of the VEC accessing the results of the e-voting centre polling places prior to the close of the poll on Saturday November 25, 2006 in the absence of scrutineers
3) VEC handling of FOI requests
4) review of the Victorian Ombudsman Act in order to ensure that the Ombudsman has jurisdiction over the Victorian Electoral Commission and other issues.

The Parliament is expected to advertise the hearings next week.

Written submission can be forwarded to Mark Roberts, Executive Officer, Electoral Matters Committee, Parliament House, Spring Street East Melbourne.

No email address have been provided by copies of any submission could be also forward to the Speaker and President of the Parliament House.


More information

Sunday, March 25, 2007

CEO High Roller

David Pitchford receives salary pakage greater then John Howard

Melbourne City Council CEO David Pitchford is listed as one of the big rollers pocketing over $350,000 plus benefits paid for by the City ratepayers and money collected by corrupt traffic officers. More then John Howard and Steve Bracks. Is he worth it?

David Pitchford was paid a bonus on top of his salary last year even though the Ombudsman found the City Council under Pitchfords stewardship, with the assistance of ex-City Council legal adviser Allison Lyons, tried to thwart the Ombudsman investigation last year in an attempted cover-up of the crime of ripping off motorists. Maybe this is why he received a bonus.


The Herald Sun reports:


Councils spend big
Peter Rolfe Sunday Herald-Sun March 25, 2007 12:00am

BIG-SPENDING local councils are paying senior staff more than the Prime Minister receives.

Flush with funds as property owners pay record rates and charges, at least three Melbourne councils are rewarding chief executives with pay packages that eclipse John Howard's.
At least 12 are paying chief executives more than Victoria's Premier, Steve Bracks.

Melbourne City Council chief executive David Pitchford leads the list of high earners, pocketing a package worth more than $354,000 a year.

Apart from a cash salary of $241,553, Mr Pitchford is also entitled to a 25 per cent performance bonus plus superannuation, a car and expenses.

Mr Howard's total annual package for running the country is just over $309,000.

Mr Bracks is on $235,000 a year.

Monash Council chief David Conran has an annual package of $315,750, including a salary of $250,000.

Boroondara boss Peter Johnstone earns more than $337,500 to administer the suburbs of Hawthorn, Camberwell, Canterbury and Kew with a 25 per cent bonus on top of his $232,371 base salary plus a car and superannuation.

And Whitehorse chief Noeline Duff earns more than $292,700.

Ratepayers Victoria president Jack Davis said council spending was out of control.

"People will be shocked to find out how much these people are being paid," he said.

Friday, March 23, 2007

New York Apple Pie

John So and Council propose expenditure of 26,000 for 3 day junket

New York, New York, what a wonderful town at 26,000 for two to visit the big apple


Melbourne City Council's "Can not say no to proposed expenditure" John So is planning a 3 day visit to America's "big apple" New York. The Load Mayor and Geoff Lawless are proposing to spend up big whilst visiting the big apple at an estimated cost of $13,000 each for three days. 'Ouch' there goes the budget. Most people can live for a year on $26,000.

Those ratepayers that are struggling to pay off the second mortgage or those who are homeless might like to reflect more on the excess of the Lord Mayors Office. (this is just the tip of the ice berg)


The advertised cost of a business class ticket from Qantas is listed at $12,820 (Flight Centre lists from $5,670) Qantas economy class listed at $2,307).



Assuming the Council can secure a competitive air fare that means the Lord Mayor and Jeff Lawless will be spending around $3,000 a day on a rate-payer funded New York luxury holiday no expenses spared.

Travel on.


The Large Cities Climate Leadership Group (who is organising this junket) is a group of cities committed to teh reduction of Green House Gas Emmissions and adopting to climate change. Questions not asked by teh City Council Travel club members include: Could the aims and aobjkects of this conference have been ahchieved by organising a e-conference and internet link up as opposed to proping up the business travel tourist sector?

Carbon Emission Sustainability consumption (Missing from report)

The proposed New York Travel will generate in excess of 7.5 tons of Co2 gas based on calculation for an economy air fare ticket. (Four times gas generated more for Business Class).

Note to Fraser Brindely: If the City Council is serious about a Green Environment then it should as a matter of course list down the estaimated carbon emmision form all interstate and international council funded travel. CVr Brindly should seek amendemnet to teh City Couchnils travel guidelines to ensure that this information is readily available and noted on all applications for travel.

Tuesday, March 20, 2007

Junket Committee resurrected

Melbourne City Council proposes re-establishing junket committee to boost Councillors prospects of Travel benefits

The Melbourne City Council has proposed the re-establishment of a special Travel Committee to decide who and when Councillors can seek to take holidays at ratepayers expenses.

Melbourne's most travelled Councillor, Liberal Party member - Fiona Sneden, has proposed that the Council removes delegated authority for approval of Councillor Travel from the Lord Mayor and transfers that responsibility back to a special committee titled "Council International Connections Committee" (CICC).

This committee is a waste of time and resources and should be rejected as it currently is proposed..

Whilst there is merit in removing delegated authority from the Lord Mayor the resurrection of the disgraced Travel Committee is not necessary. There already is a committee in place that can and should consider Council travel issues. It is called the Finance and Governance Committee.

Council staff have already strategically removed the right of the Finance and Governance Committee to consider and decide on issues related to governance.

The establishment of another Special Travel committee be it under a "new name" is necessary and a waste of limited resources. All that the proposal by Cr Sneden serves is to avoid public awareness and the right of the public to monitor and review the Council and the larks and perks that Councillors continue to seek to regard themselves for being good councillors.

All Council's International and Interstate Travel should be included and attached to the Finance Committee without the need and expense associated with the cost of establishing another useless inappropriate committee that meets behind closed doors away from the public eye.

It never ceases to amuse that the Council staff, in this case Linda Weatherson, falsely states in her report " There are no direct financial implications relating to the adoption of the recommendations contained in this report".


It appears that the City Council is more concerned about councilor benefits and travel then about good governance and representation.


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Wednesday, March 14, 2007

City retail in decline

Myers scales down Lonsdale Street retail outlet

Myers Melbourne to scale down City outlet amidst concern that City retail is in serious decline.

News realised today indicates that Myers, Melbourne's iconic retail outlet has decided to close down its Lonsdale Street outlet with hundreds of jobs set to vacate the city center. Myers decision comes as no surprised as suburb outlets and problems associated with traffic access and parking in the city centre undermining the viability of Myers premier store.

Questions are being asked as to what action plan the City Council has to fill the void that will be left standing as yet another major city site faces the prospect of remianing vacant.

teh scaling down of Myers will also have a flow on effect to other city business who rely on passing trade and custom from Myers workers.

We can soon expect more announcements of City retail outlets calling it a day and vacating the City Center.