Published on Thursday, 28 June 2018 at 5:21:41 PM

Sale of the Community Bus – ethical and transparent decision making paramount to the way Vincent conducts business

Transparency, accountability and ethical decision making is of utmost importance to the City of Vincent. In recent years, we have driven reform in the way we conduct our business and make decisions in the best interests of the Vincent community.

The Perth Voice, 30 June 2018, front page news story “Don’t Bank on Vincent” may raise questions in our community about the way in which Vincent Council recently decided to sell the City of Vincent Community Bus.

I would like to assure our community that the decision made was comprehensively considered, financially responsible, ethical and equitable. It was also important that the decision did not lead to any conflicts of interest.

Some of the key facts are:

• The North Perth Community Bank (Branch of Bendigo Bank) made a donation to the City of Vincent on 4 July 2008 for an amount of $132,000 which enabled the City of Vincent to purchase the Community Bus. This generous donation also allowed for North Perth Community Bank to be eligible for a tax concession and the bus was highly decorated in North Perth Community Bank branding for the 10 years in which the bus was owned and operated by the City.
• The Community Bus has served the City and the community of Vincent well over the past decade. Unfortunately its inability to carry residents with a disability or mobility issues meant that it was no longer suitable to be used as our community bus, as we do not restrict access to our services for residents with a disability. In practice, the City of Vincent was increasingly hiring accessible buses for community use and the Community Bus was used less and less. In 2016/17 it was only used twice, and then twice again in 2017/18. Community groups paid $150 per day or $80 per half day to use the community bus, but it became clear that they were able to hire better quality, fully accessible buses from private hire companies at competitive rates and this had a big impact on use.
• Over the 10 years of ownership, the Community Bus was maintained and operated at significant cost to the City of Vincent. In 2015/16, the City spent $21,894 in one year alone. This is important when considered against the original donation of $132,000 received. It is also highly unusual for a donor to request a local government to return an asset purchased with their donation, especially after 10 years. Over the years the City of Vincent has received grant funding from many sources, including Lotterywest, and this type of request has never before been made.
• Council considered all options for disposal of the bus as it was required to do under the Local Government Act 1995. As the bus is a community asset owned by a local government, there are statutory requirements that set parameters around sale and disposal.
• Council considered the most appropriate and transparent approach was to dispose of the community bus through public auction. This process enables true market value of the bus to be obtained and also enables the North Perth Community Bank to submit a bid.
• Disposal through public auction also avoided any perceived or actual conflict of interest given the longstanding relationship between the City of Vincent and North Perth Community Bank.
• Mr Nick Catania, former Mayor of the City of Vincent between May 2001 and October 2011, is the Chairperson of North Perth Community Bank and a Director of North Perth Community Financial Services Ltd (the franchisee which owns North Perth Community Bank). Further, the former Vincent Council of the time approved the purchase of shares in North Perth Community Financial Services Ltd to the value of $11,000 in April 2001 and the purchase was finalised in November 2001.
• Due to this financial relationship and historical connection, I believe it would have been inappropriate to gift or allow for the exclusive sale of the bus to North Perth Community Bank for less than tested market value.
• The City of Vincent is seeking advice on the purchase of the shares in November 2001 and reviewing whether there is an appropriate reason for retaining those shares.

The City does not accept Mr Catania’s sentiment around the Bank’s entitlement to the bus and, despite ongoing communication between us, we are disappointed with the Bank’s unwillingness to accept Council’s decision. The decision to sell the community bus was based upon important ethical considerations and made in the context of good governance, financial responsibility and in the best interests of the Vincent community.

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