East Gippsland Shire Council is taking proactive steps to protect essential services, critical projects and local employment by responding to the ongoing impacts of fuel price volatility across key Council contracts.
Mayor Cr Jodie Ashworth said Council recognised that fuel price fluctuations were placing significant pressure on contractors who deliver important services and projects across the shire on behalf of Council.
"Council relies on a wide range of contractors to deliver essential works and services for our community such as waste management and road maintenance, and many of those contracts are impacted by fuel cost increases we are all feeling as a result of the conflict in the Middle East," Cr Ashworth said.
"The reality is that current contracts were not designed for the kind of rapid and sustained fuel price changes we're seeing. A decision at Tuesday's Council Meeting to work fairly and transparently with contractors will manage the risk of these particularly exposed contracts, keep projects moving and protect local jobs."
Cr Ashworth said the measures were also about ensuring services were not disrupted or projects left unfinished due to commercial pressures beyond contractors' control.
"We want to avoid situations where vital services are put at risk or projects stall midway because escalating fuel costs make them unviable," Cr Ashworth said.
"Supporting the continuity of services is in the best interests of our community, particularly when many of our contractors are local businesses that provide employment across East Gippsland."
Council has resolved to give the Chief Executive Officer delegated authority to vary existing particularly exposed capital and operational contracts, where appropriate, to include fuel and petroleum product price adjustment mechanisms that respond only to abnormal market conditions.
Cr Ashworth said Council's focus remained on responsible financial management while responding pragmatically to extraordinary circumstances.
"This is about managing Council well - making decisions that are efficient, responsive and in line with the challenges our community and local businesses are facing. The approach is designed to manage risk in a rapidly changing market while ensuring value for Council and continuity of services for the community."
