Media Release - Change in Council direction

Published on 03 May 2021

Burnie City Council has decided to change the way it delivers a number of services to the community.

This decision is necessary in order to improve our financial position and meet our core service delivery obligations.

The Council has reduced the rates burden on its community over the past three financial years and wishes to keep future rates increases to a minimum.  The past rates reductions have been achieved while maintaining existing levels of service.  Due to a number of factors this is no longer financially viable.

Council operates a number of discretionary services which run at a financial loss, including the Museum, Art Gallery and Makers’ Workshop.  These three services currently cost Council approximately $1.6M per annum to operate.  Historical low interest rates and the impact of the COVID-19 pandemic on other revenues sources are also significant factors.  As reported last week Council will return an operating deficit this financial year. This is the fourth operating deficit over the past five years. Combined with the continuing impact and uncertainties caused by the pandemic Council has reviewed all aspects of its operations. Unless action is taken to contain costs, Council will continue to run operating deficits into the future, which is not financially sustainable. 

The only alternative is significant increases in rates and other service charges, which is not acceptable to Council.

The State Government has indicated that it will introduce a new waste levy later this year which will add to the future cost burden on rate payers.

The combined effect of these factors means that delivery of some services has to change.  Council will continue to deliver the current range of services, but in different and more affordable ways.

Council has withdrawn from the Cradle Coast Authority determining that in the current circumstances continuing membership does not represent good value for money.

Council is continuing with the refurbishment of the Burnie Arts & Function Centre, using the $5M grant from the Commonwealth Government to create an integrated function and cultural facility housing the current art gallery and exhibition spaces for the museum. Recruitment of the Centre’s new Executive Manager is underway and this person will have an important role in assisting with the planning for the new facility.

Because of the continuing impact of COVID-19 and to assist preparation for this major refurbishment, the Burnie Regional Museum will remain closed and the Burnie Regional Art Gallery will close from 1 July 2021. The building currently used as the Museum will continue to house the photographic collection and the digitisation project will continue, but the building will remain closed to the public. The function centre will continue to operate as normal until further notice.

A planned indoor sports stadium will not proceed to construction at this stage, however planning will continue to finalise concept design and site selection.

Council has run an annual calendar of community events over the years, however will not continue to operate its own events and instead partner with art and cultural organisations; professional event management companies and community groups to fund the provision of events throughout the year.  The traditional event calendar will change and evolve to keep events in Burnie fresh and attractive.

The Visitor Information Centre and Creative Paper at the Makers’ Workshop will close from 1 July 2021. Visitor Information Centres are becoming less effective, relevant or viable as digital delivery becomes more important.  Council cannot justify the continuing cost of operating the Visitor Information Centre with the reduced number of tourists and the absence of cruise ships for the foreseeable future.  Council will invest in other forms of visitor attraction and support.

Unfortunately, as a consequence of these required cost saving decisions, there will be a number of operational changes and staff redundancies, final details of which are yet to be determined.  Council management has advised all staff and relevant unions of these decisions and will continue to work closely with all staff and unions throughout implementation.

There are two other changes to current service arrangements.

First, the Council has determined to transfer the operations of Tas Communications back to the Council.  The Council has determined that on balance there is no longer sufficient justification for maintaining Tas Communications as a separate entity and that the interests of the Council, as the sole owner, are best served by bringing the function and staff back into Council.  There is no change to the staffing profile as a consequence.

Secondly, the Council is transitioning Burnie Works out to be a free standing incorporated association.  There are benefits for Burnie Works in establishing as an independent legal entity.  The Council will be a member of the incorporated association and continue to support Burnie Works.  Again, there is no change to the staffing profile as a consequence.

We will continue to keep the community informed.