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 City faces $500,000 bill for new crematorium furnace 

City faces $500,000 bill for new crematorium furnace

21 Sep, 2009 03:58 PM
Wollongong Crematorium's 50-year-old furnace will need to be replaced in 10 years, potentially costing ratepayers $500,000.

At an emotional public meeting on Saturday to discuss the future of the crematorium, residents were told money also would need to be spent to bring the crematorium building "up to a more contemporary standard".

"It competes with every other asset (the) council owns to get funds," Wollongong City Council property and recreation manager Peter Coyte told the meeting.

  • Crematorium sale plan goes public

    Despite the looming maintenance issues, Mr Coyte revealed the business on Berkeley Rd, Unanderra, had returned a "modest profit" for the past few years.

    The council relined the furnace about five years ago, has upgraded the exhaust and converted it from diesel to gas fuel.

    But he refused to provide specific figures on the facility's financial performance, noting the risk of giving competitors the upper hand.

    About 20 residents attended Saturday's meeting at the council's Burelli St administration office, which came after a similar public meeting on Thursday night.

    Some expressed concern for the future of the business and the associated memorial gardens where their relatives are interred.

    There were fears about how fees would be structured and maintenance of the grounds.

    "You have got something spectacular there and it is a credit to you," one resident said.

    The public has until October 2 to send submissions to the council on whether the crematorium should be sold.

    "I think the administrators will recognise we haven't put financial data on the table. I think what they want to hear is your emotions on it," Mr Coyte replied.

    Mr Coyte could not confirm if money residents had paid to reserve niches or to have family members' ashes placed at the gardens or in the memorial wall would be reimbursed if they chose to go elsewhere.

    But he assured the meeting the private operator would be buying only the business and would be accountable to the council as the owner of the land and building.

    "Cemeteries are seen as core businesses," he said. "Whether ... the council should be in a business of running a crematorium, that is another question."

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    comments


    Date: Newest first | Oldest first
    Turn it over to an owner whose main aim is to turn a profit, costs will increase. I think it should remain in public hands.
    Posted by Manny, 21/09/2009 6:46:37 AM, on Illawarra Mercury
    Obviously Council management cannot get its story straight. Peter Kofod earlier on claimed that the Crematorium was costing the ratepayers of Wollongong money, Peter Coyte stated in todays Mercury that the Crematorium "had returned a "modest profit" for the past few years." Not having all the facts on what is a modest profit it is hard to decide whether to support the proposal or to go against it.

    I strongly believe that the Crematorium must remain in the hands of Wollongong City Council. I wonder how many business people would now buy the business part of the Crem knowing that they will have to fork out half a million dollars to make it viable within the next ten years.

    Posted by Johne, 21/09/2009 8:12:07 AM, on Illawarra Mercury
    Peter Coyte seems to be a good honest hard working council officer. I wonder if someone else is recalculating the figures and writing the scipt? The crematorium's function and its Berkeley operation must remain in council hands. As a society, we must respect those that have gone before us and treat them with respect. Disposal of the operation would disrespect them.
    Posted by FILT, 21/09/2009 9:45:41 AM, on Illawarra Mercury
    If the crematorium was losing money, I could understand Council unloading it. As it is a viable business,as Peter Coyte stated,why sell it There appears to be more to it.
    Posted by Grannie Annie, 21/09/2009 5:52:46 PM, on Illawarra Mercury
    If the Council pushes ahead and sells the crematorium against public sentiment, despite it making a return because it is “non-core”. The community should pursue this as a precedent and demand that the Council halt further waste and extract itself out of all “non-core” business, such as caravan parks, tourist business, land development etc. This way the council could trim excess staff costs down and focus on the core of roads, footpaths, garbage and libraries etc. This would also eliminate the excuses of having too many competing priorities as a reason not to do things. I won’t hold my breath……..
    Posted by fisho, 22/09/2009 10:39:32 AM, on Illawarra Mercury

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    Peter Coyte at the public meeting. Picture: GREG TOTMAN
    Peter Coyte at the public meeting. Picture: GREG TOTMAN
    Related Coverage
    POLL
    Q: Should Wollongong City Council privatise the city's only council-owned crematorium?

    Yes
    (16.7%)

    No
    (83.3%)

    Total Votes: 216
    Poll Date: 21 September, 2009

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