Legal advice will be sought on the Performance Improvement Order (PIO) the Minister for Local Government Ron Hoenig imposed on Central Coast Council on September 19 before the new councillors were even elected.
And an Urgency Motion will be sent to the NSW Local Government conference asking for support in fighting the PIO.
At the first meeting of the 15 councillors, Cr Jane Smith opened discussion on the PIO, saying there were many questions to be asked about it, not the least being its legality.
She said some people with expertise in the area suggested a number of potential issues with it.
Smith said it restrained the business of Council, some of which included matters that had to be reviewed as directed by the Local Government Act and yet the PIO would prohibit that.
She said democracy was about residents electing people to make decisions in their interests, not bureaucrats making those decisions.
CEO David Farmer said it would be wise to table and acknowledge the PIO even if the councillors wanted to challenge it.
Cr Smith said it was not about challenging it but about getting legal advice.
Her Motion listed a few areas for the advice including the PIO seeking to maintain the status quo rather than addressing any clearly defined need for improvement and the timing of the PIO when the elections were in process.
After a Cr John McNamara suggestion, the Council will also engage with the three other NSW councils who are also under PIOs.
Cr Belinda Neal said she thought it was important to understand why the Minister thought the Council performance needed to be improved.
Deputy Mayor Doug Eaton asked that Council submit an Urgency Motion to the NSW Local Conference which is being held in Tamworth in November to get their support to stop the Minister imposing PIOs on other councils when there is no reason.
Cr Eaton said it was basically trying to handcuff the new councillors for “some crime” that occurred in 2020 when the Council was in financial difficulties.
He said it was outrageous in his view and they should be pointing that out.
Cr Kyle McGregor complained about Cr Eaton’s wording being political rather than professional.
The CEO agreed the councillors should be elegant in their wordsmithing.
Points from Cr Smith and Cr Eaton’s Motions were combined, and after a break in the meeting to finesse the wording, the councillors adopted the Motion unanimously.
Administrator Rik Hart, in one of his last meetings before the councillors were elected, said the PIO would act as “guardrails in case the horse bolted”.
The PIO restricts the councillors to implementing the current operational plan and budget for the first 12 months of their four-year term and other potential actions have to gain the permission of the Office of Local Government.
These include not being able to restructure the council or sack the CEO or change any staff delegations.
The October 8 Agenda papers contained advice to the councillors.
“Non-compliance with the PIO would lead to further consequences being imposed, including increased Ministerial interventions, together with damage to the Council’s reputation, and possibly reflecting poorly on individual councillors,” the advice stated.
“Such reputational harm is avoidable, but expensive and disruptive if allowed to occur.
“However, to control this risk, the councillor induction and training programs have been prepared to facilitate initial and ongoing compliance with the PIO, such that the risk of non-compliance is mitigated, and councillors can act on decisions available to them in accordance with the PIO.”
See previous stories here: https://coastcommunitynews.com.au/central-coast/news/2024/09/minister-signs-improvement-order/