Liverpool City Council has lost its legal challenge to halt a public inquiry into its operations after allegations of “dysfunction and maladministration and/or corruption” following a hearing in the NSW Land and Environment Court today.
While finding that the Council was denied procedural fairness by the NSW Office of Local Government in its release of a 50-page interim report when announcing the inquiry in July, Justice John Robson said that from September 5, Minister for Local Government, Ron Hoenig, could exercise his powers including suspending councillors and appointing an administrator.
In a brief statement following the hearing, the Council conceded it had been unsuccessful in its court action.
“Council respects the decision by Justice John Robson and is considering its position,” the Council stated.
Justice Robson rejected Council claims Minister Hoenig or Office of Local Government Deputy Secretary, Brett Whitworth, had showed actual or apprehended bias in releasing the interim report.
In a statement from the Minister’s office this evening, Mr Hoenig said the NSW Government welcomed Justice Robson’s ruling.
“As Minister, I was provided with information by the Office of Local Government concerning widespread dysfunction and maladministration within the Council. I don’t need to revisit these concerns,” he said.
“Justice Robson’s judgment is clear that the advice given to the Minister about the serious concerns at Council was reasonable.
“A number of serious allegations had also been made known to the Office of Local Government by Council employees, members of the community, councillors and Members of State and Federal Parliament.
“These concerns remain and will be address in the public inquiry.
“The decision to hold a public inquiry and the reasons why an inquiry was needed, was outlined in the advice provided by the Office of Local Government.”
The Council has until Thursday to respond to Mr Hoenig’s initial notice of intention to defer the upcoming local government election and suspend the council.
The parties will have 21 days to file submissions as to the awarding of costs.
