Debt delivers miles of value: CEO

By Paul Dunlop
A ROADbuilding scheme that has attracted nationwide attention was all the more meritorious because Cardinia Shire borrowed money to pay for it.
That was the message at council’s meeting last week from chief executive officer Don Welsh.
Amidst other praise for the Connecting Cardinia 50 kilometre road project, Mr Welsh said the decision last year to borrow money to fund the $17 million scheme was now paying dividends.
Critics of the council have regularly expressed concern about its level of debt, but shire officials have always maintained their loan strategy made sound financial sense.
Mr Welsh said the rising cost of road construction — including significant hikes in fuel costs — meant the council had saved at least $15 million by acting when it did on Connecting Cardinia.
“I rejoice in the brilliance of the decision to use debt to fund this project,” Mr Welsh said at council’s meeting last Monday.
The CEO’s comments were supported by Cr Doug Hamilton who said council was giving roads to residents now and spreading the cost of the scheme over 15 years.
Cr Hamilton said this meant the roads would be paid for by everyone who enjoyed their benefits — including people who moved to the area in future — not just the current crop of ratepayers.