Chamber calls for State inquiry

The Peninsula Chamber of Commerce has called for a State Government inquiry over the "controversy surrounding the Peninsula Leisure Centre and the Department of Local Government report from December 2005".

"Clearly the report by the Department of Local Government has raised too many issues to simply be swept under the table", said Chamber President Mr Matthew Wales.

"At the very least, the Chamber supports the recommendations of the Department that an independent audit be initiated over council's handling of the budget blow-outs and tendering process for the Leisure Centre.

"It is ironic that all the concerns that have been raised by the business community and local residents in the years leading up to the opening of the leisure centre have been clearly identified in the Department of Local Government report.

"The Business Chamber wants a State Government Inquiry to examine why the leisure centre budget blew out from its original $2 million to what we now understand is $29 million."

Mr Wales said the chamber shared the concerns of the department on key issues such as budget mismanagement, consent authority approvals, ignoring community concerns and problems with the tendering process.

"I've heard the excuses from some Gosford councillors that this report was based on old information gathered in 2004," said Mr Wales.

"The information is still the same.

"In fact, since that information was reviewed by the department, we have learnt that the budget blow outs were much worse and that the centre was now going to trade at a loss of $1.3 million per year."

Mr Wales said that this situation was a disgrace and that the State Government should step in to ensure a full and transparent review of the past leisure centre operations.

"What I think many in the community are concerned about is the fact that the Local Government Report has not yet been reported through the council meeting agenda," Mr Wales said.

"I would have thought that the council had an obligation to release such critical information immediately.

"I'm not surprised at this as I am sure that there are several former and present councillors who would find it difficult to explain such a massive lapse in the management process to the point where the community is going to pay for these mistakes for many years to come.

"From the business community's perspective, our biggest concern is the use of $12 million of Section 94 developer contributions to pay for the budget blow outs.

"These funds, which come from the open space account, were supposed to be used for acquisition and embellishment of community open space.

"All those funds have now gone and it is unlikely that the Peninsula will ever have sufficient Section 94 monies to do much more than pay off the pool debt."

Mr Wales said that while the community now had a great facility, the end result would be little or no improvement to roads and drainage on the Peninsula "simply because there is nothing left".

"And now with reduced population projections for the Peninsula from the NSW State Government, those developer contributions that Gosford Council was so desperately relying on to pay for the Peninsula Leisure Centre and other community infrastructure will never materialise," Mr Wales said.

"Without the income, you can't deliver on the promises.

"It's a shambles which clearly shows that those in charge of the Peninsula Leisure Centre process didn't have a clue what they were doing.

"Unfortunately, these are the same people who now want to spend $30 million on a regional library and concert hall.

Press release, September 24 Matthew Wales, The Peninsula Chamber of Commerce