The report, which was presented at the Campaspe Shire Council meeting last night, outlined the increased use of volunteers and reduction of paid staff by almost half could not be supported by council contributions of $300,000 a year.
This not-for-profit structure that incorporated volunteers was proposed for investigation by councillor Vicki Neele at the September meeting to ensure council had “all sides of the story” when deciding a new management structure for the Port of Echuca.
However, the volunteer-based structure would only save about $600,000 a year in wages, meaning the Port would still run at a $1.027 million loss in the 2022-23 period.
The report assumed current services continued to be offered, including at the Port of Echuca Discovery Centre, and assumed that volunteers would be used wherever feasible.
An “aggressive use of volunteers” would see 15.8 full-time equivalent roles changed to voluntary roles including shop assistants, two casual roles, a static steam display operator, maintenance manager and eight board members compared to the other not-for-profit option put forward.
This other not-for-profit model was presented to councillors at the September meeting.
It proposed full-time staffing numbers would increase from 9.1 to 14, a paid board with eight to 10 directors and an increase to 20-40 volunteers from eight.
At that meeting, councillors noted further advice was needed before considering a management structure.
Cloudstreet Economics director Dr David Cochrane said the volunteer model would not be sustainable.
“It can clearly be concluded such a model … could not be delivered with council support of $300,000 (even if feasible),” he said.
“The selection of the preferred model also requires considerations beyond purely financial, as was recognised in the Cloudstreet Economics report.”
Dr Cochrane said a management model that relies more on volunteers “will exacerbate a number of constraints while also increasing the risks (operational, reputational and financial) associated with the model to council”.
These include the potential for governance issues, a segmented service delivery and diminished council control.
Council is yet to receive further advice that was requested around Port precinct management options including the not-for-profit model.
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