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There have been two instances in the past
year when the City’s Chief Operating Officer, Mr. Labas, has
given ratepayers the same disturbing speech.
The first was when the Gas Utility
under-estimated the cost of servicing gas wells by more than a
million dollars. This miscalculation evoked the famous
“Uh-oh” proclamation from then alderman Bill Cocks. The
most recent is the City’s potential loss of up to $8 million
in a gas marketing business failure.
This latest loss is drawing public
criticism but perhaps for the wrong reason. It may not be a
question of mismanagement, but it is almost certainly Mr.
Labas’s perceived arrogance in rationalizing large financial
losses.
His refrain goes something like
this. “Yes, we’ve lost money. However, don’t
forget how many millions the Gas Utility contributes to the
Medicine Hat Advantage!” This argument is lost on those of us
who have trouble with monthly bank statements. A loss is a loss.
And, as another writer correctly notes, the lost money means less
for important City projects.
The COO’s argument appears to
belittle these losses as “small potatoes” or as
inevitabilities in a big business like the Gas Utility. It’s
not the message that residents want to hear. What we want to hear
is accountability.
In the gas well servicing schmozzle, a
bureaucratic error occurred. The budget line provided for only one
gas well to be serviced when a whole field was in need.
Errors occur. Human institutions are fallible. Admit the
mistake and move on.
In the gas marketing mess, residents have
to realize that there are costs and risks to owning a
“business.” Losses are part of the game. Mr. Labas
explained this, then trotted out the argument that the loss is not
significant when compared to the tremendous profits from the Gas
Utility. Well, for the ordinary resident, $8 million is
significant. Do not expect residents to ignore the dark side by
constantly looking on the sunny side.
A little humility is in order.
Humility, not blame. In future, Mr. Labas, try this clear, simple,
message: “It is ‘regretful’ that we have lost
money. If it is possible, here is how we will avoid the same
situation in the future.” That’s all we want to
hear. That is accountability.
Les Pearson
Medicine Hat |
