THE Southern Metropolitan Regional Council has come under fire for giving pay increases to councillors last year despite suffering a $2.9 million operating loss.
Riverton MLA Mike Nahan slammed the SMRC, claiming chief executive Stuart McAll received a salary increase of at least $50,000 or 38 per cent, as revealed in the council’s 2008-09 annual report. But SMRC spokesperson Chuck Ellis said that was a printing error and the CEO’s remuneration had only increased from between $170,000 and $179,999, to between $180,000 to $189,999. Although SMRC’s loss was $1.8 million more than forecast for the year ended June 30 2009, chairman Tony Roman and deputy chairman Richard Smith received a 10-fold increase in their allowances to
$12,500. Councillor meeting fees were also increased, by about 50 per cent to $59,000. “During a year when many ratepayers were struggling financially, wage rises were a minimum and considering the poor performance of the SMRC and its management, these increases in remuneration are grossly excessive,” Dr Nahan said. However, despite conceding he would again receive a “marginal” contractual pay rise this year regardless of performance, Mr Romano said he agrees with Dr Nahan “in light of the current business climate”. “The SMRC has faced a number of challenges, many such as the global financial crisis beyond the regional council’s control over the last year, and we continue to deliver an essential service to the community,” he said. The SMRC has endured a raft of challenges over the years including a public affairs inquiry into waste management in WA, odour issues with the plant, a fire in June 2009, and the issuance of an environmental protection notice by the Department of Environment and Conservation.