City of Albany defends decision to hand councillors ‘COVID’ payments for taking 20 per cent pay cuts in 2020

Local councillors at a major regional centre are under fire for handing themselves a combined $10,000 payment after sacrificing part of their allowances last year. City of Albany’s 11 councillors and Mayor Dennis Wellington this week approved pocketing “COVID” payments more than $600 each as compensation for taking a 20 per cent pay cut for six months — the equivalent of $2,800 for councillors — last year. Mr Wellington and Deputy Mayor Greg Stocks will receive additional $1795 and $449 payments respectively. The move comes as the City finds itself in a “more positive financial” position following fears revenue would drop by millions of dollars because of the pandemic. In a statement titled “Council takes lead in response to pandemic”, and released to media last year, Mr Wellington said Albany’s councillors were “very happy to share the pain.” “Local businesses have closed, people have lost their jobs, it’s just had an immense impact and we don’t know how long it will last, so we’re very happy to share the pain and help find a way we can support the people who need our help,” Mr Wellington said at the time. Now, despite City staff acknowledging the move could pose a “severe” risk to the local government’s reputation, Albany’s council approved the payouts without question. The council in April endorsed a similar one-off COVID payment for City staff who gave up a pay increase during the pandemic. The payouts have been slammed by Albany’s business community. Ratepayers were “not considered in the decision”, according to Albany Chamber of Commerce and Industry president Kerry Fry. “It is our understanding that the pay cut was achieved by a reduction in work hours and reduction in allowances due to COVID lock down restrictions effecting the ability for council services to operate and service the community,” Ms Fry told The West Australian. “Perhaps a return of rates in exchange for the reduction in services could have a wider and more fair benefit, shared by all residents in the community.”City of Albany chief executive Andrew Sharpe said ratepayers “have always been our priority” but councillors had given up “more than was needed.” The City’s financial management did not lead to $7 million being lost and councillors had given up “more than was needed”, he said. “Because of this, the City has initiated a one-off payment of two per cent to all current councillors and staff who gave up personal income to secure the City’s financial security and avoid job losses,” he said. “This payment does not compensate them for all they gave up but acknowledges their loyalty to the City and community.”