WHILE Phillip Island Community and Learning (PICAL) may be forced to wind up, funding and support agencies have moved quickly to ensure crucial services will continue.
PICAL’s committee of management, its umbrella organisation Neighbourhood Houses Gippsland (NGH) and Bass Coast Shire Council have all moved to reassure vulnerable clients.
The discovery of inadvertent under-payments to staff over more than a decade have left the neighbourhood house technically insolvent.
PICAL’s committee of management has called a special general meeting for November 14 to consider a motion to wind up the organisation.
PICAL’s committee of management, its umbrella organisation Neighbourhood Houses Gippsland (NGH) and Bass Coast Shire Council have all moved to reassure vulnerable clients.
The discovery of inadvertent under-payments to staff over more than a decade have left the neighbourhood house technically insolvent.
PICAL’s committee of management has called a special general meeting for November 14 to consider a motion to wind up the organisation.
“Unfortunately, estimated historic debts far exceed PICAL’s financial reserves or its ability to raise the necessary funds within a reasonable timeframe, rendering PICAL technically insolvent,” the president of the committee of management, Graeme Turner, said in a statement.
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NHG’s Network manager Toni Halloran-Leville said NGH was working closely with PICAL to address its financial challenges and explore alternative solutions.
“If PICAL is required to liquidate, NHG, in collaboration with funding bodies and partners, will step in as a caretaker to ensure that essential services, such as emergency food relief, Centrelink support and the community garden, continue on Phillip Island. Although program delivery may be limited in the short term under NHG’s co-ordination, the primary foocus will remain on providing access to vital community services, Ms Halloran-Leville said. “NHG is dedicated to supporting the Phillip Island community through these challenging times. Our priority will be to sustain essential services and provide the necessary support to navigate these changes.” Council CEO Greg Box also stressed support from the council to work through the crisis. “Council has already held urgent discussions with PICAL management and local Bass Coast MP Jordan Crugnale who has briefed the State Government. We will explore all options to ensure these important and much needed services continue to be delivered. |
'Difficult decision'
“This historic debt originated over 10 years ago due to the incorrect classification of certain roles, which led to some individuals being paid on an incorrect pay scale.
“At the time, Enterprise Agreements were quite generic and open to interpretation, which contributed to the error that persisted, undetected, over the years. “It is important to note that this was an administrative inaccuracy and not the result of management, misappropriation or fraudulent behaviour by anyone involved with PICAL. “While there are no current demands for payment, these historic debts are so significant that they far exceed PICAL’s financial reserves or capacity to repay, thus making PICAL technically insolvent. “PICAL would like to emphasise it is both illegal and against the responsibilities of the Committee of Management to continue trading when we cannot meet, or demonstrate the ability to meet, our debts. Despite our best efforts to resolve this historic issue, we are compelled by law to make this incredibly difficult decision." - Statement from PICAL chairman Graeme Turner |
“PICAL management has confirmed to Council that it will continue to provide services while these talks continue.”
The council currently supports PICAL with a discounted lease on its premises in Warley Avenue, on the site of the old hospital, and a community garden at Blue Gum Reserve, along with grants to assist the organisation to provide community services.
The council currently supports PICAL with a discounted lease on its premises in Warley Avenue, on the site of the old hospital, and a community garden at Blue Gum Reserve, along with grants to assist the organisation to provide community services.