Anger over blowout

AMIDST allegations of Lake Illawarra Authority (LIA) financial mismanagement and calls for greater management and financial accountability of the lake entrance project by the LIA, last week Shellharbour City Council reluctantly approved the LIAs request for an additional $437,500 in funding to help cover the cost of a $1.75 million budget blowout on the construction of the breakwaters and dredging of the lake entrance.

The LIA had put the same request to Wollongong City Council, stating the State Government would match these contributions with a further $875,000.

According to the LIA, the budget blowout was the result of escalating fuel costs, un-budgeted special conditions imposed on the project by the Department of Planning and heavy escalations in the costs of imported rock and dredging since the original estimates made in 2003.

Following extensive debate, the final vote by Shellharbour City Council to approve the additional funding was 9 in favour, 3 against and one abstain.

Commenting on the budget blowout, Cr Tim Hore said he was disappointed at the extent of the blowout.

Deputy Mayor, Cr Michele Greig asked for better management control of the project and Cr Barry Bird also said he was disappointed, but that Council must bite the bullet.

Cr Helen Stewart expressed her disappointment in the cost blowout, saying

Enough is enough - this should not be a council problem. The government has to stand up and be held accountable for this blowout.

According to Cr Jeff Bailey, Council was caught between a rock and a hard place in having to make a decision on the extra funding.

Were damned if we do and were damned if we dont, Cr Bailey said.

I dont want to see another cent spent on the lake unnecessarily, but the reality is we dont have a choice.

In my heart, I cant defend this expenditure.

Representing the Save Lake Illawarra Action Group (SLIAG), Mr Col Wilton called the budget blowout an LIA blunder.

The Government appoints the Lake Illawarra Authority board and the board has made a stuff up, Mr Wilton said.

The Government, not the rate payers, should pay for the LIAs blunders.