Saturday, August 30, 2014

The Consultant Trap.


In order to convince themselves and the voters that a controversial issue is being given serious consideration consultants are brought in by governments of all sizes to perform an expert analysis and to offer solutions. Of course these self styled experts don't come cheap.

The current Wilmington water revenue controversy offers a case study of our tax dollars in action.
The need for increased water department revenue is not in question but how that revenue will be collected is the question. After exhaustive study and using modern computer technology, a method of collection was finally presented to the city fathers and mothers by the hired guns.

Meanwhile, back at the water treatment plant, an imaginary custodian looking over some discarded paperwork noted that the department needed around $600 thousand a year in new revenue to resolve the ongoing financial problem. The custodian already knew from other sources that there were 6,000 water customers in the city. With a pencil stub and a scrap of paper our man calculated that collecting an additional $10 a month from each customer would produce the needed revenue. He then sighed, threw the paper in the trash and finished his chores.

Back to the real world: The consultants finally finished their study and made their recommendations. A $120 per year surcharge on each customer would bring in the needed new revenue. Included along with their power point briefing paper was a $5,000 consultant's fee bill.

Paul Hunter

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