Townsville Mayor Troy Thompson rejects influence in $2.6m in termination benefits

Mayor Troy Thompson has denied he pushed out the former council boss shortly after taking office as councillors called for details on $2.6m in termination benefits awarded to execs. WATCH THE VIDEO

Mayor Troy Thompson has denied he pushed out the former council chief executive shortly after taking office, and does not believe any contracts for resigning key execs were broken which led to $2.6m in golden handshakes.

Townsville City Council’s operations team including its chief executive were reluctant to provide details to councillors in front of the public as to who approved termination benefits to three staff members including former CEO Prins Ralston “over and above” what was outlined in their contracts.

It was unclear to the public, and to councillors, how much the former CEO was paid after he gave notice of resignation two days after Mr Thompson and his new council were sworn in, but the total amount of termination benefits to council staff in 2023-24 was about $2.4m more than the year before.

Chief executive Joe McCabe delayed responding to Councillor Suzy Batkovic’s pursuit for details as to who authorised overpayments identified by the Queensland Audit Office three times during Wednesday’s meeting by taking them “on notice”.

But he did say the council had changed its CEO remuneration and performance policy in September and that there would be further policy changes in December that would make clearer distinctions on payments.

Mr McCabe said the CEO signed off on employment separations within the council, but would not identify who within the council signed off on Dr Ralston’s termination settlement when he left his position.

After the meeting, Mr Thompson downplayed speculation he was to blame for an executive reshuffle within two months of being sworn in, believing it was a normal part of a change in government, and claimed no conditions were breached in employee contracts.

“I think the proof is in the pudding, there’s 43 new mayors and 37 new CEOs so generally speaking when a new government comes in they all exit,” Mr Thompson said.

The investiture of newly elected Townsville City Councillors at the council chambers. Former Townsville City Council CEO Prins Ralston and newly sworn-in Mayor Troy Thompson shake hands. Two days after the photograph was taken, Dr Ralston announced his intentions to resign. Picture: Evan Morgan

“Prins and I certainly were on different tangents but at the same time you work with who you got.

“It’s not a good look for any council, it’s not just Townsville City Council, everybody goes through these processes.

“What I will say is that from my perspective we move forward, if you look at the position we are in financially that’s got a lot to do with the old heads of those executive roles.”

Ms Batkovic heatedly told the Bulletin after the council meeting that councillors knew nothing about the payments, and emphasised that councillors needed to understand why some details could not be publicly disclosed.

She said the report had revealed vague policy around termination benefits across all local governments as well as the state government.

Her concerns in the council meeting stemmed from the fact that someone in the operations team was determining overpayments to their resigning colleagues, while councillors did not have a breakdown of the total $2.6m in termination benefits, which was 1100 per cent higher than the previous financial year.

“I don’t understand why councillors wouldn’t be privy to understanding how these are itemised and how they all come about and what that looks like, because at the moment we’ve got a total amount and I don’t know how it all looks and who got what and why,” Ms Batkovic said.

Chief legal officer David Sewell speaks to councillors in a recent council meeting. Picture: Shae Beplate.

Chief legal officer David Sewell said the affected termination payments were not necessarily bad, but that there needed to be clearer set policies about how an employer’s breach of contract could be managed.

He used a “hypothetical situation” in which there could be risks of potential litigation with claims of unfair dismissal, and that it could be worth the legal risk offering settlement payouts instead.

“Those are factors that you may see in the policy that will be coming before the council on the 4th of December to outline some of those factors,” he said.

“The important thing is they are articulated, documented and that they are taken into consideration in relation to a settlement, that’s the key issue and I believe that’s really where the QAO is going.

“Not saying any termination beyond a contract is necessarily unlawful or a bad thing, it’s just you need to have appropriate processes and procedures in place in relation to those kind of settlements.”

Originally published as Townsville Mayor Troy Thompson rejects influence in $2.6m in termination benefits