The loss-making Millicent Saleyards are “beyond redemption” according to a community leader with a decisive vote on their future expected at the next meeting of Wattle Range Council on Tuesday.

Penola-based councillor Rick Paltridge again declared his unequivocal stance on the 45-year-old facility at last week’s informal council workshop. However, he was challenged by Millicent-based councillor and saleyards supporter Dennis Muhovics.

“Thousands of people do not want to see millions spent on drains at Penola,” Cr Muhovics said. Cr Paltridge, Cr Muhovics and their nine fellow elected members will vote on an adjourned motion from Deputy Mayor Cr Moira Neagle next week.

The saleyards are scheduled to close on June 30 unless the financial situation improves but Cr Neagle wants the council to guarantee their operation by a further four years until mid-2025.

The saleyards occupied 90 minutes of the informal council workshop with Mayor Des Noll allowing verbal contributions from independent stock agent John Chay and local farm worker Ryan Jellesma.

A small number of farmers also sat in the public gallery. In an authorised break from usual meeting procedures, councillors were permitted to make multiple contributions to the debate.

Ahead of the workshop, councillors were privately given a written statement from saleyards manager Andrew Robinson about maintenance priorities and costings.

There were several references to this document during debate but council chief executive Ben Gower told The SE Voice that it was not for public release. An auditor’s report tabled last month indicated that maintenance repairs costing $535,000 were needed in the coming five years.

In response, Mr Robinson estimated repairs costing $80,000 were needed in the coming 12 months. In opening the discussions, Mr Gower stated that sales data revealed a gradual increase in cattle throughput over the past three years.

He said the best financial result had been achieved at one sale last November which had grossed $2.6m. According to Mr Gower, there had been no “silver bullet” for the operations of the saleyards but the financial situation had stabilised.

The council chief executive suggested a trigger point might be required to prompt a review such as throughput declining to 8500 head of cattle per annum. Cr Neagle read from a prepared statement in which she said the presence of the Millicent saleyards gave local vendors more sale options.

She invited councillors to attend the fortnightly market this morning. The deputy mayor said she may have to modify her adjourned motion listed for debate on Tuesday. Cr Kevin McGrath said the saleyards provided a service to the rural ratepayers who might see a council grader working on their unsealed road just once per annum.

“The Millicent saleyards cater for the small producers,” Cr McGrath said. “Every community has a white elephant.”

Cr John Drew said he had to balance the cost to the council of the saleyards with their benefit to the community. Economic development manager Roger Babolka said the lighting infrastructure had failed and could cost up to $100,000 to replace.

Mr Babolka said the $13.6m in annual cattle sales at Millicent generated $29m in economic benefit to the area. Referencing a 2018 consultant’s report, Cr Paltridge said superior prices for cattle were achieved at the Naracoorte and Mount Gambier saleyards.

However, Mr Chay and Cr McGrath both challenged this as they stated the data took into account store sales which were not held at Millicent. Cr Paltridge said the future of the Millicent saleyards was a hard decision. “We are propping up a small sector,” Cr Paltridge said.

Mr Jellesma said the social interaction for farmers provided by the Millicent saleyards was invaluable and was noticeable when the sales were closed to the public in 2020 owing to COVID protocols. If the council decided to retain the saleyards, Mr Jellesma said an adequate budget for maintenance had to be provided.

Cr Muhovics said tracts of saleyards land had been sold over the years for the silos and other commercial ventures but the sales were not reflected in the saleyards financial statements. The Millicent saleyards recorded a $102,000 loss in the 2019/20 financial year.