Statement from CEO Trevor Ierino

Published on 16 September 2022

This statement is in response to allegations levelled at Council relating to the business case for the Rutherglen Wine Walk Cycle Trail.

In October 2021, Indigo Shire Council was advised that it was successful in securing a $5.1M Federal Government grant to fund the development of a 48km cycle and walking trail traversing the world-renowned wine region of Rutherglen.

The grant application for the Rutherglen Wine Walk Cycle Trail was based on a comprehensive business case, developed by leading international tourism, recreation and conservation planning consultancy TRC Tourism, specialising in tourism and economic modelling.

TRC Tourism has successfully secured funding for a number of recreational trails and other tourism infrastructure across Australia and New Zealand and has an in-depth knowledge of the Rutherglen region and the Trails and Tourism Industry. 

This project, which has been strongly supported by the local tourism, wine and business sector, is critically important to boosting the local economy, helping it to recover from the impacts of COVID19 and border closures, the 2019-20 bushfires and lingering smoke across the North East.

Serious allegations have been levelled at Council in an article in today’s Border Mail Newspaper and in a letter to the Federal Minister for Regional Development and Local Government suggesting the business case is flawed.

We strongly refute these allegations, which are unsubstantiated, lack evidence and are at complete odds with the data and modelling provided by the industry experts.

The business case clearly states there will be no cost to ride the trail. The $25 per ride quoted is what is known as a shadow cost or notional cost. It is a term used by economists to estimate the benefits of a project. It refers to what a person is prepared to spend to enjoy that experience. In this case that would include things like the cost to travel to Rutherglen, bike hire, food, petrol, accommodation and so on. Naturally these benefits would be enjoyed by the local economy.

We are extremely disappointed with the misinformation contained in the article and the letter and the impacts this could potentially have on the local community should this project be placed at risk.

Council’s decision to develop a business case and apply for funding was based on the strong backing of local wine and tourism industry bodies which recognised the enormous economic benefits such a project could bring to the region.

We have been advocating for this for many years and will continue to do all we can to ensure that this wonderful project is brought to fruition.

Trevor Ierino
CEO