SP's contribution to the debate around Yarra 05/06 budget

YARRA’S BUDGET 2005/06

A Socialist Party Contribution to the Debate Around the Budget



The Socialist Party joins Yarra residents in calling on Council to

develop a budget for the people— not a right-wing budget that spends

more on roads and consultants than on community services.



Yarra Council should be actively seeking to develop a democratic budget

that reflects the needs of ordinary people in Yarra. This means

encouraging real participation by residents, community groups and small

businesses in the development of their budget. The Yarra Council 2005/6

Draft Budget has instead been developed by council in a process that is

largely inaccessible to the people it will affect.



This leaflet outlines some ways the Socialist Party believes the budget

should be changed so it represents the real needs of the community. It

is a starting point for community debate around the Yarra Council Budget

both this year and into the future. We want to encourage all residents

and community groups in Yarra to participate in the development of their

budget. Only in this way can we have a true People’s Budget that

reflects the needs of the majority in Yarra.



The Council’s 2005/6 Draft Budget calls for:

• A 5.9% increase in rate revenue.

• $5.5 million for roads, but only $200,000 to improve family services

including childcare.

• $2.2 million on advertising, publicity and for consultants – which is

enough money to make meals on wheels free and still have

$1.7 million left over.

Yarra Council is about to present its draft budget for 2005/06. You, as

a local resident, will have only a month to have your say before

Councillors vote on it on July 12th.



A do-nothing Budget

We have great needs in Yarra, especially in childcare and on the three

massive public housing estates. Therefore you would expect big

initiatives in this budget, but there are none. Even small businesses

are not serviced properly with still no access to recycling, despite the

pro-environment claims of Yarra Council.

The small improvements in the number of child care places and on

resources to young people in need are to be welcomed – but we can do so

much more.



What Council’s Draft Budget says and what it doesn’t say

The budget proudly boasts of its good parts (many of which came from

community and Socialist Party pressure on and outside of Council) – but

there is much it doesn’t report on – for example Yarra’s vital Financial

and Crisis Counselling service is to receive only $31,000 this year

compared to $83,805 two years ago!



Where does Council get its $94 million from?

Ratepayers are being asked to fork out an extra 4.9% in rates, with 5.9%

extra to be generated in new rate revenue this year. It is ironic that

the Socialist Party is the only party opposed to the screwing of

ratepayer’s year in, year out for little in return by way of new

initiatives by Council. It seems it is easier to raise money from

ratepayers than take on the State and Federal government over cuts in

grants to Council.

Fees and fines are to go up in most cases by about 3%, although after

school care fees go up 9% per child per session.

Government grants (from State and Federal government) have been cut by

2.7% this year (page 11). This long-term cutting of Council money must

be challenged. However a Labor-led Council will not take on a State

Labor government, especially with a State election next year.



What are they spending our money on?

$60 million is for operating costs. $45 million of this is on wages but

the budget papers do not make clear how much is on the mini-army of team

leaders, coordinators and directors at Yarra, a Council that is top

heavy with management. The community wants workers on the front line –

for example there is no money for a second footpath trading officer,

leaving only the one current officer to police over 1000 businesses.

$19 million is for capital works. Many of these projects are good but in

some cases the priorities are wrong, with $5.5 million for roads, yet

only $200,000 to improve infrastructure at child care centers.

$2.7 million is for debt repayment to the banks. This is being proposed

even though Yarra hasn’t got “relatively high borrowing levels for a

Victorian metropolitan local authority”, as the budget claims. In fact

the State government recommends that total debt for a Council must be

60% of rate revenue or less – for Yarra this year it is only 29%.

While there is nothing wrong with Council reducing their debt, they have

chosen to prioritize this over providing funding for essential services

like child care, aged services and libraries.

This is just one example of how this Draft Budget puts money before people.



What could be done instead?

1. A less top heavy management structure and less spent on consultants

would free up money for more socially-useful operating costs such as job

creation for unemployed youth and lower fees for Council services.

2. A readjustment of the capital works away from roads and expensive

projects like the nearly $1 million on information systems would add

millions for use for three big projects that the Socialist Party stands

for: A new child care center, a new North Fitzroy library, and a new

indoor sports facility for Yarra. These three projects would be both a

social and economic asset to Yarra.

3. A three year debt freeze would still leave Yarra ahead of State

government guidelines and would allow about $10 million to be spent on

progressive capital works projects such as the three the Socialist Party

stands for. This is partially admitted on page 31 of the budget. Even a

slow down in debt repayment could deliver $5 million.



What are the best parts of Council’s Draft Budget?

Partially thanks to the recommendations of the Youth Advisory Committee,

which was pushed for and chaired by SP Councillor Stephen Jolly there is

new resources for holiday activities for young people in public housing;

extra vacation care places; increased occasional child care, and more.

The $100,000 for a childcare review is to be welcomed and was agreed to

as a direct result of the growing community pressure on Council to act

on the crisis. The test will come when the area of greatest need for

childcare is identified: will Council then create a new childcare center

or not?



Principles behind the Council’s Draft Budget

This budget “has been prepared on the basis of constraint” (page 9) and

its Budget Principles (page 6) include nothing about community need.

Council, despite calling itself left-wing, has prepared a right-wing

(neo-liberal) budget. Since the end of the post-war economic boom in the

early 1970s almost all western governments have begun the process of

winding back conditions won in the past. This ‘neo-liberal’ agenda has

been carried though by governments on all levels through privatization,

user pays, and cuts to services.

The fact is that though they are possibly slightly better on service

delivery; Yarra Council is fundamentally no different from other Councils.

A Socialist-led Council would shift priorities towards ordinary people

in Yarra as well as mobilising to fight the cost-shifting by government.



For more information about the Socialist Party or to find out more about


or write to SP, PO Box 1015,

Collingwood 3066. You can also visit our council website at:

socialistpartyaustralia.org/council



Socialist Party City branch meets every Tuesday at 7pm at Trades Hall,

cnr Lygon + Victoria Sts, Carlton South

Socialist Party Northern branch meets every Thursday at 7.30pm at radio

station 3CR, 21 Smith St, Fitzroy