Clarence Valley Council’s elected representatives could be suspended and replaced by an interim administrator after unanimously asking the NSW Government for an independent investigation into Council’s operations.
NSW Minister for Local Government Ron Hoenig has written to Acting General Manager Adam Cameron advising that he is considering the action under section 438I of the Local Government Act 1993.
The letter, dated 2 October, follows Council’s extraordinary meeting on 1 October, where councillors supported an investigation into governance, administration, operations and financial management since January 2022. The request sought to establish the facts, identify problems, recommend improvements and make findings public where possible.
Mr Hoenig said he was considering suspension in response to that motion and because he reasonably believed an interim administrator “may be necessary to restore the proper and effective functioning of the Council”.
Council and its councillors have until close of business on Tuesday, 13 October to make submissions. The Minister said he would consider those submissions before deciding whether to proceed.
The correspondence does not announce a final decision.
Deputy Mayor Cristie Yager, who authored the unanimously supported investigation motion, has strongly opposed the proposed suspension, saying it was not what Council had requested.
“My motion was not telling the Minister that we cannot govern,” she wrote on Facebook.
Cr Yager said the unanimous vote demonstrated councillors were willing to confront concerns together and argued that working relationships were improving.
She identified appointing a community-minded general manager as Council’s next important task and called for elected representatives to be given the opportunity to continue their work.
“We asked for help to make Clarence Valley stronger. NOT hand it over!”
Mayor Peter Johnstone also defended the intention behind the resolution, saying councillors had sought investigative support to ensure Council operations were functioning properly.
“The majority of councillors did not intend for it to be interpreted as an abdication of responsibility,” he wrote.
Cr Johnstone said another extraordinary meeting would be held on Tuesday, 6 October to discuss the Minister’s letter and determine Council’s response.
Councillor Greg Clancy said that while he might have supported an administrator a few months ago, his position had changed.
“I believe that the actions of the past two weeks have set the scene for a more positive council,” he wrote.
Cr Clancy said cooperation had recently improved and councillors needed an opportunity to work together and with a new general manager.
The three councillors encouraged residents opposed to suspension to make their views known to the Minister. The letter itself formally invites submissions from Council and councillors.
In a separate statement published before the Minister’s letter emerged, Councillor Karen Toms explained that her support for the investigation did not mean she supported the termination of former general manager Laura Black’s contract.
Cr Toms said allegations needed to be tested against evidence and the investigation should also examine the conduct and decision-making of the governing body and individual councillors.
She said the process should establish facts without a predetermined outcome.
If a suspension proceeds, an interim administrator would exercise the governing body’s functions, including those of the mayor. Office of Local Government guidance outlines an initial suspension of up to three months, with extensions generally limited to six months in total under this process.
The Minister’s letter does not specify a proposed suspension period or confirm whether the independent investigation requested by Council will proceed.
CVCI has contacted NSW Minister for Local Government Ron Hoenig, Shadow Minister for Local Government Tim James and Member for Clarence Richie Williamson for comment. No responses had been received at the time of publication.
