"The Minister for Local Government has admitted that the Division of Local Government (DLG) has written to the Council about tendering processes but has provided no details.

“I understand that the DLG is concerned at the inappropriate behaviour of a number of Councillors, but has simply referred Council to investigate itself.

"It seems the State Government wants to know nothing and see nothing. It seems to be business as usual so far as the Government is concerned

"The community is entitled to know what complaints have been lodged about the actions of Council or Councillors, particularly in relation to the expenditure of ratepayers’ money. To say that ‘it is not appropriate to comment’ fails to address the community’s serious concerns.

"The State Government is having a bet each way. The Minister’s answer to a question about the Council's purchase of land owned in Mudgee by Stockland is evasive, merely declaring that ‘councils are autonomous bodies ... with the power to purchase land and buildings’.

“But at the same time the Minister has no problem with emphatically declaring in relation to the double purchase of an easement from the Mudgee Sports Ground Trust that this has not happened.

"How is it that the Government can be so emphatic about one matter and yet be so keen to avoid answering a question about another?

"Residents have the right to know what is going on in their council and equally the right to expect that government departments will investigate genuine complaints.

"It is simply not acceptable, for example, to tell a council to conduct its own investigation into a matter involving potentially serious conflicts of interest. In Mid-Western’s case, the concern is that a councillor who holds a senior office in an organisation that has had financial dealings with the Council has failed to declare a conflict of interest.

"The answers given by the Ministers insult the residents of Mid-Western local government because they refuse to engage with the genuine concerns of locals,” said Ms Hale.

Contact: Colin Hesse on 02 9230 3030 or 0401 719 124

Following are the questions and answers from the NSW Parliamentary website.

4354—LOCAL GOVERNMENT—MID-WESTERN REGIONAL COUNCIL

Ms Hale to the Minister for Planning, Minister for Infrastructure, Minister for Lands representing the Minister for Local Government, Minister for Juvenile Justice, Minister Assisting the Minister for Planning, and Minister Assisting the Minister for Health (Mental Health)—

1.  
1. Has the Division of Local Government received complaints concerning a Mid-Western Regional councillor alleging a conflict of pecuniary interest regarding the purchase of the Stockland site in Mudgee?
2. If so, do the complaints allege that the Councillor owns a hotel and residential land immediately bordering the site, which is currently owned by Stockland and which Mid-Western Regional Council proposes to acquire?
3. If so, is the Councillor who is the subject of the complaints a member of the Council team negotiating purchase of the Stockland site?
4. If so, what action will the Department of Local Government take against the Councillor if the allegation of conflict of interest is substantiated?
2.  
1. Has Mid-Western Regional Council entered into an agreement with Stockland to purchase the land?
2. What action will the Department take to ensure that the negotiating process was in the interests of the residents of Mid-Western Regional Council?
3.  
1. Has Mid-Western Regional Council twice purchased the same easement (noted in the NSW Government Gazette No.191 p.11147 5 December 2003 and described as affecting Lot 185 DP755418 and to acquire an easement over Lot 185 DP 755418 in the Report to Assets Management Committee Meeting, Mid Western Council 7 May 2008), the second time for $33,600, from the Mudgee Sports Ground Trust?
2. If so, on the second occasion was the purchase price $33,000 and was paid at a time when the Mudgee Sports Ground Trust was in dispute with Council over a $33,000 water bill?
4.  
1. What action has been taken to investigate allegations that a Mid-Western Regional Councillor was also the chair of the Trust and subject to an apparent conflict of interest?
2. If no action has been taken, why not?
5.  
1. Has the Mid-Western Regional Council been referred to the Independent Commission Against Corruption over breaches of section 55 of the Local Government Act 1993, relating to tendering processes?
2. If not, and if the above allegations are substantiated, will the Mid-Western Regional Council be referred to the Independent Commission Against Corruption?
3. What other actions will be taken?
6.  
1. On how many occasions in the last five years has the Minister for Local Government, the Director-General of the Department or the Deputy Director-General written to Mid-Western Regional Council about breaches of the Local Government Act 1993 in regard to tenders and breaches by Councillors of conflict of interest guidelines?
2. What has Mid-Western Regional Council's response been to these letters?
3. What further action will be taken?

Answer—

I provide the following details in response to your questions:

1.  
1. It is not appropriate for me to comment on specific complaints that are made to the Division of Local Government.
2. See answer to 1 above.
3. See answer to 1 above.
4. The Local Government Act provides a framework for the handling of pecuniary interest matters. Under the Act, the responsibility for assessing such allegations and conducting investigations largely falls to the Division of Local Government. Any allegation that a councillor has not managed a pecuniary conflict of interests appropriately would be examined by the Division. Any allegations that a councillor has not managed a non-pecuniary conflict of interests should be dealt with by the council in accordance with the complaint handling procedures provided in the Model Code of Conduct.
2.  
1. This information is not required to be held by the Division of Local Government accordingly, the question should be directed to the council concerned.
2. The Local Government Act 1993 recognises that councils are autonomous bodies with powers to undertake a wide range of activities, including the purchase of land and buildings. The Act does not provide powers to the Division to directly oversee negotiations or purchases by councils in the open market.
3.  
1. No
2. N/A.
4.  
1. It is not appropriate for me to comment on specific complaints that are made to the Division of Local Government. The Division of Local Government would examine any allegations of a pecuniary conflict of interests that may arise as a result of a councillor being a member of a company or other body. Allegations that a councillor has a non-pecuniary conflict of interests in a matter arising from membership of an organisation would be examined by the Council.
2. N/A.
5.  
1. As the ICAC Act deals with the conduct of public officials, the Division would not be able to refer the Council to ICAC for breaches of the tendering provisions of the Local Government Act.
2. Section 11 of the ICAC Act imposes a duty on the principal officer of a public authority to report to the Commission any matter that the person suspects on reasonable grounds concerns or may concern corrupt conduct. Where, in the course of examining a complaint, officers of the Division of Local Government reasonably suspect corrupt conduct by any individual, it would be duly reported to the ICAC in accordance with section 11 of the ICAC Act. I am advised that there have been no referrals of matters relating to tendering by the Division to the ICAC.
3. The Division has written to the Council regarding tendering matters and has considered Council's response.
6.  
1. I am advised that the Division of Local Government has written on one occasion to the Council regarding tendering issues. I am informed that the Division expressed concerns that the provisions of the Local Government Act may have been breached. I am also advised that the Division of Local Government wrote to Council on one occasion to clarify the pecuniary interest provisions of the Act and to provide general advice in relation to code of conduct matters. I understand that the letter to Council regarding code of conduct did not relate to a specific breach of the code by the Council.
2. I am advised that the letter regarding the tendering issue was tabled by Council at an ordinary meeting as requested. The letter regarding the code of conduct provided advice and did not require a response.
3. I am advised that no further action is proposed.

Question asked on 18 May 2010 (session 54-1) and printed in Questions & Answers Paper No. 149.
Answer received on 22 June 2010 and printed in Questions & Answers Paper No. 158.