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Clarence Valley Council faces possible suspension after seeking independent investigation

Clarence Valley Council in northern New South Wales is facing the prospect of suspension. The Minister for Local Government, Ron Hoenig, wrote to council on Friday advising he is considering suspending the elected body and appointing an interim administrator.

The letter followed a unanimous council resolution the previous day, asking the State Government to consider an independent investigation into council’s governance. According to The Northern Rivers Times, the Minister said he reasonably believes an interim administrator may be needed to get the council functioning properly. No decision to suspend has been made, and councillors have been given the opportunity to make submissions.

Council voted nine to nil at an extraordinary meeting on Thursday to support a motion from Deputy Mayor Cr Cristie Yager. The motion asked the Minister and the Office of Local Government to consider an independent investigation of governance, administration, workplace practices and financial management, principally covering matters dating back to January 2022.

The proposed scope includes statutory compliance, workplace culture, recruitment, councillor access to information, complaints and internal oversight, and legal and consultancy services. Where relevant, it extends to the conduct and decision-making of councillors, staff and contractors.

Cr Yager published the proposed notice of motion on Facebook before it went through council’s formal process. Crs Andrew Baker and Karen Toms then requested an extraordinary meeting rather than waiting for the ordinary meeting on 15 October. Both told the Times they supported an investigation, although Cr Toms was critical of how the proposal emerged.

After the Minister’s letter, the Mayor Peter Johnstone said he was surprised by how quickly the Minister had moved. He said he had not been consulted beforehand and, as far as he knew, council had not first been issued with a performance improvement order.

“We were hoping for an investigator, and instead we get an administrator,” said Cr Johnstone.

Cr Johnstone said the motion was intended to obtain independent assistance that could either reassure the community or identify issues council needed to address. He said several councillors had reservations about it but supported it to show a unified position.

The Minister’s letter arrives against a backdrop of significant disruption. Earlier this year, Office of Local Government Deputy Secretary Brett Whitworth conducted a fact-finding exercise following numerous complaints about council, and did not recommend major regulatory intervention. Since then, council has experienced a procedural error in its mayoral election, Cr Johnstone’s resignation as mayor and subsequent re-election, and the termination of General Manager Laura Black’s contract. Mr Adam Cameron is Acting General Manager.

Council will meet at 4.30pm on Tuesday 6 October to consider its response. Cr Johnstone intends to make his own submission and hopes councillors will agree a joint submission arguing the elected body remains capable of running the council. He has also raised concern about the effect of any suspension on recruiting a new general manager, a process council wants to begin and believes should be led by its elected representatives.

Any decision to suspend rests with the Minister.

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