Minister rules out support for controversial council policy

"The Queensland Government does not support councils using ratepayer funds to fund private legal action.”

PRIVATE: Minister Mark Furner (pictured with Mayor Mick Curran) confirmed the State Government does not support councils funding private legal action. Picture: Contributed

COUNCILS should not be using ratepayer money to launch private legal action, including defamation, the State Government has confirmed.

The controversial subject reared its head in the region earlier in June when Gympie Regional Council moved to approve a legal policy outlining acceptable uses of ratepayer funds for legal action.

The policy included broad guidelines for when council funds could cover legal costs for action against third parties who "unreasonably" continue to make "untrue and unwarranted" public statements about councillors or employees, or is having a "significant detrimental effect" on the public reputation and confidence in a council.

A spokesman for Local Government Minister Mark Furner affirmed the State Government's position yesterday.

"The Queensland Government does not support councils using ratepayer funds to fund private legal action," the spokesman said.

The reason the state had not issued broad rules on council legal policies was to allow for flexibility, and "clear guidelines" on what policies should contain had been provided.

"Given the diversity of Queensland's local government sector, we do support each council to develop a suitable legal assistance policy to meet the needs of its local community," he said.

The State Government's position aligns with the majority of Australian states, which assert councils paying for private legal action is not appropriate.

New South Wales had the most stringent rules on the matter.

"A council must not meet the legal costs of legal proceedings initiated by a councillor under any circumstance," a spokesman for the NSW Office of Local Government said.

"This includes the legal costs of a councillor seeking advice in respect of possible defamation, or in seeking a non-litigious remedy for possible defamation."

South Australia had similar rules.

"In South Australia, Section 39 of the Local Government Act offers protections for council members for civil liabilities that may arise in the course of their duties," a Local Government Association of South Australia representative said.

"However launching a defamation action is regarded as a private action and is not part of the protections offered."

While Victoria has no specific rules and councils can develop their own local laws, councillors who seek private action are expected to cover the cost.

In Western Australia, councils can seek to use ratepayer funding for defamation, but only on the grounds of "good governance" for the community.

The WA policy also notes the potential impact on free speech where criticism is made about local government (city, town or shire).

"Legal precedent dictates that it is fundamental to public scrutiny that governments be open to criticism by members of the community.

"The threat of civil action against any person who publicly criticises a local government will have an inhibiting effect on freedom of speech and inevitably lessen a local government's accountability to its community."