Just Hardship
Local businesses are suffering a huge downturn. Tourism, accommodation, and retail businesses are being hit hardest. Some hard-working South Gippslanders are losing jobs or shifts, and everyone knows someone who is directly impacted. Hopefully, no-one in our shire will lose their life to this unwelcome virus. 

The most important thing during these times is that we stay healthy, follow health guidelines and State Government directives, and support one another as we navigate to the other side of the coronavirus crisis. 

South Gippsland Shire already has some of the highest Council Rates in Victoria (SG: $3,407 on a $655k property, East Gippsland is $2,578, Hume $2,535). While the Shire has considerable assets and cash on hand, state and federal governments are more sensitive to citizens and small businesses and are stepping up to the mark and working to support everyday Australians as we grapple with the far-reaching impacts of the pandemic. 

South Gippsland Shire is operating an incorrectly named ‘hardship’ policy. This policy provides people suffering financial hardship with an extended payment plan for out-standing Rates. There is no discount. In fact, many will be surprised to learn Council applies a 10% interest rate for a secured debt. Compare this to other secured debts from commercial ‘for profit’ banks with rates under 3%. 

Council actually benefits from the hardship of its residents, so theirs is not a hardship policy it’s a policy to extract extra money from the most vulnerable people in our society. 

People who have lost jobs, incomes, and what may well prove to be livelihoods should receive understanding, not what we’re seeing. Applying an exorbitant interest rate to people who have to defer their rates illustrates a complete lack of compassion and understanding for the circumstances so many are facing. 

The long-term economics suggest a far more sensible approach would be to offer interest-free extensions and discounts to those individuals and businesses in need. Council needs to consider if it is not better to take a short term financial hit, in other words, share the burden and come out the other side with businesses that can become productive again and hire staff and support our local economy. 

We also need to consider the mental health and welfare of the most vulnerable in our society. Should local Council profit from this disaster? Or should they implement a real hardship policy that supports the most needy of our Shire? 

The purpose, morality and legality of this interest rate must be questioned. This is akin to a predatory pay-day lender preying on vulnerable businesses and individuals. 

The interest rate which Council uses as its guide has been set by the magistrate’s court, and applies to overdue fines and penalties, but Council officers are not bound by law to charge this interest rate. 

Everyone must share the pain; in doing so, collectively, we can support our community. 

We call on the Administrators to direct Council officers to implement a real hardship policy. Everyone will need to make sacrifices. Budgets must be cut, and staff may need to be stood down for a period of time. Maybe annual leave or long service leave entitlements should be used? 

But, the rate payers, the working people and businesses of our Shire deserve a realistic and compassionate hardship policy. 

Let’s start with a 0% interest rate and a properly considered repayment plan. For businesses and individuals who can illustrate significant loss of income, let’s propose a commensurate discount in rates for 2020/21. 

By working together and sharing the load, our Shire can come through this together. 

This is a call to the Administrators to respond and to do so quickly. 

The contributor of this story has asked us to withhold his/her name. We, as the group behind Just Community, struggled over this issue, but we chose to accede to the writer’s request because we felt there was a real issue of an ill-disposed reaction from Shire officials.