WITH construction of the Leongatha Early Learning Centre about half complete, it has been confirmed the facility will be leased to the adjoining Leongatha Children’s Centre Incorporated, which has operated a preschool and kindergarten since 2001.
Councillors voted unanimously to approve that outcome at Wednesday’s council meeting, having previously put that proposal out for public feedback.
Just one public response was received, with an objection lodged.
The objector, Lindsay Love, argued in a written submission that the rental rate for the Early Learning Centre is too low for this lease compared to the market rental rate applicable to ‘for profit’ organisations.
His submission draws attention to the need for council to comply with the National Competition Policy (NCP), introduced in 1995 to help avoid anticompetitive practices in Australia by allowing competitive markets to operate freely.
“Part of this policy aims to ensure that where governments, including local government, provide activities in markets where private businesses also operate, they are competing fairly in those markets,” council’s July meeting agenda states.
In Victoria, the state’s commitment under the NCP is implemented under the Victorian Government’s Competitive Neutrality Policy.
“Council has completed a competitive neutrality assessment of this proposed lease, and also sought legal advice on this matter and it is deemed that council is compliant with competitive neutrality policy principles,” July’s meeting agenda states.
Lindsay said in his submission that, “Council is proposing to lease this facility at a token rent of just $104 per annum”.
That figure is provided in council’s March meeting agenda.
While construction of the Early Learning Centre was initially hoped to be complete by November 2022, it is now forecast to be finished early next year with contractor availability and material supply issues responsible for the delay.
The Early Learning Centre is located in Symmons Street Leongatha, providing 120 registered places.
