THE figure of $25,000 is around the average price quoted by BCSC for special charge schemes (SCS) on The Esplanade in Surf Beach/Sunderland Bay. The August meeting council was asked how much interest a ratepayer would repay council on a $25,000 hardship loan over 20 years. CEO Box responded “A $25,000 hardship plan repaid via monthly instalments over 20-years, with an effective interest rate of 5.605 per cent would equate to a repayment of approximately $16,630 interest.”
Therefore, the cost to such a ratepayer for the SCS, would be $41,630.
Adding 10 per cent, which BCSC is allowed to do to the initial cost, the repayment total rises to $45,793.
Thus, a proposed charge of $25,000 can ultimately cost the ratepayer almost $46,000 – nearly doubling the initial cost.
Breaking this down further:
$46,000 over 20 years = $2300 per year (on top of the cost of yearly rates).
$2300 per year = $190 per month/$44 per week.
For 20 years!
A recent report by The Australian Institute identified that currently “the rate of poverty in retirement in Australia is 22.6 per cent – more than one in five.”
One of the major concerns the “Say No” group has always expressed is the financial impact any SCS would have on many pensioners and fixed-income ratepayers. When walking our streets we encountered many highly anxious ratepayers, experiencing sleepless nights due to the fear of being forced to pay (against their will) for a SCS they neither wanted nor could afford. Many of the Yes group has regularly attacked us and scoffed at the No group for suggesting many ratepayers in our area simply cannot afford a scheme. They are quick to just quote the “hardship loan” as the quick and simple solution for those who can’t afford to pay up front, without considering or caring about the actual reality of what a hardship loan actually costs.
This situation has not changed.
BCSC’s proposed “solution” provides no comfort or peace of mind, only ongoing fear and uncertainty. None of council’s touted “community benefits” of SCS’s are more important to them.
It’s time council stepped up to really “care” for this group.
Perhaps a means test could be applied. BCSC could realistically assess what each of these ratepayers can genuinely afford, rather than having an unreasonable burden forced upon them by an unempathetic minority of ratepayers, who simply want what they want, regardless of the cost or impact their “needs” may have on other community members who already struggle on a daily basis just to get by.
Ross Bencraft, Surf Beach
