There have been a lot of arguments put forward by various people in and around the Bass Coast Shire Council that by borrowing funds the Bass Coast Shire Council is saddling our kids with a lot of debt.
This is simply not true and the reason is very simple.
You and I are finite which means that we have a fixed life span. We are born, grow up, grow old and die.
When you grow up you usually get a job and then borrow some money to buy a car, house or boat.
The borrowed money needs to be repaid over a working lifetime.
On the other hand a government, be it local, state or federal, is infinite which means it lasts forever.
For example, the Shire of Bass was first incorporated as the Philip Island Road District on the September 8, 1871. It became the Shire of Philip Island and Woolamai on December 24, 1874.
And later, on December 2, 1994 the Bass Coast Shire was formed from the amalgamation of the Shire of Bass, Shire of Philip Island, the Borough of Wonthaggi, and parts of the Shire of Woorayl, Shire of Korumburra and City of Cranbourne.
Clearly this demonstrates the perpetuation of the Bass Coast Shire for nearly 150 years. There is no reason to think that the shire will not continue to grow and prosper.
Therefore, the reality is that the Bass Coast Shire Council’s debt can be continually rolled over.
Of course, the interest on the debt needs to be paid.
Now consider this that Australians have over AUD $3 trillion in superannuation assets. These assets can be better utilised by lending them to the federal, state and local governments rather than being sent overseas.
These superannuation assets receive very favourable tax treatment.
To keep this favourable tax treatment, we should force the superannuation funds to lend 50 per cent of their assets to our federal, state and local government at favourable interest rates.
These funds must be invested in worthwhile infrastructure projects.
The Bass Coast Shire has a $600 million infrastructure backlog that must be addressed.
What I have proposed above is a way to fix our shire’s infrastructure issues and build the two proposed aquatic centres.
Frank W Schooneveldt, Goat Island Gallery & Garden.