Conference backs Local Government Minister’s order on Council to improve

Central Coast Council failed to gain the support of the NSW Local Government conference in calling for the Minister of Local Government to withdraw the Performance Improvement Order (PIO) imposed on it.

The conference voted 60 per cent to 40 per cent to reject the motion.

Speaking after the count, Deputy Mayor Doug Eaton said it looked like the Labor Party delegates had decided to support the State Labor Minister.

Councillor Belinda Neal said all Central Coast councillors were disappointed that the Local Government Conference did not support the motion requesting the withdrawal of the PIO.

Eaton had addressed the conference, saying the PIOs imposed on councils coming out of administration could be the thin edge of the wedge.

“If they do it to councillors coming out of administration who have done nothing wrong in terms of those who have been elected – they could do it to any council in NSW,” Eaton said.

He explained the PIO effectively tied the hands of the councillors for 12 months and stopped council from doing things such as sacking the general manager or changing the priorities of the budget.

But two speakers stood to oppose the motion.

Councillor Susan McMichael from Armidale Regional Council (ARC) said PIOs were individual for councils and important for governance.

As a councillor who was part of a PIO, McMichael said she was firmly against the motion.

“Having the Performance Improvement Order at Council assisted us as councillors and staff to turn around what was a difficult and poor council, to one which has done great things,” McMichael said.

It was her opinion the PIO was helpful for the staff, councillors and the community and allowed everyone to see what had been achieved, and what still needed doing.

Councillor David Roenfeldt from Lane Cove Council said accountability did not cease when a council returned from administration.

“In fact all councils should subscribe to a philosophy of continual improvement,” Roenfeldt said.

“Performance Improvement Orders are issued either to encourage a council to lift their game if they are on a path of decline or to ensure that the recovery trajectory set by an administrator continues on that path until the completion of recovery. 

“The election of a new council upon having come out of administration is no justification to ditch the roadmap to recovery.’’

He said the PIOs would ensure the recovery continued.

“It is in the best interests of councils hit with Performance Improvement Orders to earn their way out of it rather than expect a free lunch,” Roenfeldt said.

“Should a newly elected council prove to the Minister that a Performance Improvement Order is no longer needed then they can be proud that their hard work earned them the recovery turnaround and the lifting of such an order.”

Councillor Vincent De Luca from Northern Beaches Council spoke in support of the motion as did another NSW councillor who said the Central Coast councillors had been made scapegoats.

With two speakers for the motion and two against, the vote was then taken with electronic counters showing that 60 per cent voted down the motion with 40 per cent in support.

The motion asked that Local Government NSW call for the Minister of Local Government to withdraw Performance Improvement Orders imposed on councils coming out of administration as a matter of urgency and to restore local democracy to those councils.

On September 19, only days after the council elections were held, Local Government Minister Ron Hoeing formally served Central Coast Council with a PIO. 

Under the PIO, Council is required to obtain concurrence of the Office of Local Government (OLG) to make major staffing decisions, such as the termination of the General Manager, the restructure of the organisation, or budget allocations.

Council also has to meet additional governance requirements, including obtaining OLG concurrence before amending its councillor and staff interaction policy, and developing a councillor request system that prevents disrespectful or excessive use.

It has to engage with Council’s Audit, Risk and Improvement Committee before any significant changes to Council’s priorities are adopted.

It has to ensure councillor briefings are open to the public unless there are grounds under the Act to exclude members of the public, such as to consider information that should not be made public. 

Council is required to provide a quarterly compliance report to the OLG, including a quarterly business reporting statement, use of the councillor request system and any determinations of acts of disorder made at a council meeting. 

Two other councils coming out of administration, Wingecarribee Shire Council and Balranald Shire Council, were also issued with similar PIOs. 

“These orders are an unfair impost on the newly elected councils who played no part in the financial problems that caused the dismissal of the previous council,” Eaton said.