SHIRE OF YORK ACCOUNTABILITY

The Hon Colin Barnett MLA                                                                                                             Date August 19, 2015
Premier of Western Australia
1 Parliament Place
WEST PERTH 6005

CC The Hon. Tony Simpson
Dear Premier,

Last month I wrote to you regarding the following article:- “Barnett casts blame for Rates”/The West Australian, Friday July 17, 2015, page 13.

You were quoted as saying that it appeared at least 7 of the 29 metropolitan councils intended to lift rates by twice the projected consumer price index rise this Financial Year (2015-16), being at least 2.5 per cent above this rate. It has now been reported that at least one metropolitan council has lifted its rates by 8 per cent.

 As you rightly said at that time and I quote ‘above inflation increases are not acceptable’.

I then drew your attention to the Shire of York’s intent to raise its rates, for the 2015-16, Financial Year, by a staggering, arguably unconscionable 13.5 per cent. This is 11 per cent above the projected rate of inflation from the WA Treasury for the fiscal year and 5.5 per cent above any metropolitan council rates increase.

Anyone seen James Best?

As of yesterday’s date, August 18, 2015, Shire of York Residential Rates Notices have become due and payable, whether whole or in part, including the additional severe impost of the 13.5 per cent rate hike.

One can assume one of three things, that the Shire of York has ignored your public statement that ‘above inflation (Rate) increases are unacceptable, or, although unacceptable for metropolitan councils, it is acceptable for those councils outside the metropolitan area, or as Premier of the State, you and your Government currently have no jurisdiction and authority over Local Government Area Councils being, in particular, any unfair, unreasonable and inequitable financial actions they may take. (The latter is the problem!)

Given the fall in state revenue and burgeoning state debt, it should be a time of austerity and frugality within the state’s two tiers of Government, state and local.

Therefore, it should be extremely galling to note that Minister Tony Simpson’s, appointed Commissioner for York, James Best, has shown scant regard for good financial governance or has made any attempt to curtail a formidable, indefensible rate increase.

During his tenure, a company named Hames Sharley (WA) Pty Ltd, of whom Mr. Best is a former director and occasional consultant, was paid nearly $42,000 for its involvement in what has been defined as “a review of York planning strategy”. (The whereabouts, content, relevance and quality of this strategic document are not known to the vast majority of York ratepayers.)                                  

An up-market public relations company, Professional Public Relations, Perth, (PPR) is listed as having been paid $26,000 over a period of just four (4) weeks for public relations advice and services to the shire. (What exactly these services were, their relevance, quality and any end result are not known to the vast majority of York ratepayers.)

However, it is alleged, Mr. Best, has close personal ties with PPR and one of its senior employees is now the author of a bi-monthly publication titled the’ Voice of York’. An initiative credited to Mr. Best that one would assume comes at some financial cost to the York community.

Recently you are quoted as saying “many of these local governments are grossly overstaffed and paid too much”.

Former Commissioner Best, acting as the Shire of York Council, has forced a small rural community to pay at least $68,000 to contractors above and beyond normal staff salaries, with these payments being excessive, and well beyond what is deemed to be reasonable ‘community expectations’.

In addition, Mr. Best, acting as the Shire of York Council, has purchased a dilapidated and possibly structurally unsound property for $625,000 for and on behalf of the shire. It is alleged that the property has not had a proper Real Estate market valuation or any other appropriate commercial property valuation- and the price paid, exorbitant.

Given this- no commercial bank in Australia would lend on this property.  It means, as always, its purchase will be funded by ratepayers, and through State and Federal Government loans, without the proper financial checks and balances that should be required under law.

You have also made a public comment that within local government ‘there is a culture of increasing rates with a lack of accountability”.

As you would know the Local Government Area residential rates system is based on the Gross Rental Value (GRV) of a property. If the rental value of a property is $650 per week, then the GRV and rates are assessed as being $1,870 per annum.

The rental market in York would have an average weekly rent return of less than half the GRV of most residential properties in the Metropolitan Area, yet yearly residential rate payment requirements are similar.

The rates payable in the Shire of York are therefore excessive, based on a sheer lack of accountability and as suggested by Minister Simpson, should be subject, in future, to a lawfully enforceable capping system.

Regarding the previously mentioned potential court action for damages against the Shire of York, and, possibly, former staff members, it is alleged that a mediation process to be entered into was stymied by Mr. Best.  He refused to accept the Shire of York’s lawyers’ nominated and preferred mediator in favour of a close personal associate. The mediation process failed.

This recalcitrance shown by Mr. Best could lead to litigation procedures that could cost the Shire of York a significant sum in damages awarded, and legal costs.

Finally, in a letter to a York resident, Mr. Best, said that after becoming aware of Minister Simpson’s ‘ Show Cause Notice’ he attended two  public meetings in York, December 2014, with the intent of approaching the Shire of York in the New Year offering his business consulting services and experience in governance and leadership.

Mr Best was appointed Commissioner on January 7, 2015, without being asked by Minister Simpson to attend any Council or Elector meetings in York.

What Mr. Best was doing, prior to being appointed Commissioner, was intending to openly tout his own business with the intent of being a contracted employee of the Shire of York.

The problem that should be addressed by a Ministerial enquiry is did Mr. Best accept payment for both his role as Commissioner and as a consultant for ‘futures and ideatation’ to the shire?
Also, given the level of previous connection between Mr. Best and the company Hames Sharley, acting as the York Shire Council, was his employment of this company  against any legal definition of ‘conflict-of-interest’- and unacceptable under the term  ‘reasonable community expectations’.


If anyone thinks that I get any perverse pleasure in raising uncomfortable issues pertaining to the Shire of York, which really is a beautiful town, you can guess again.

WALGA and a minute number of local, aggrieved parties, think the Shire of York and Local Government in general ‘aint broke’ doesn’t need fixing’ and ‘let’s move on’.

This is an admirable assumption in theory- but not in practice.

The local government overall compliance system is close to breaking point. Because of this and in numerous cases their own intractability, in the future Shires could become close to being broke financially and face continual investigations for impropriety.

When this is fixed, then we can all move on.

Yours sincerely

David Taylor.