Central Coast Council crisis: Administrator to deliver final report to the community

After almost six months as Interim Administrator, Dick Persson is set to deliver his final report into the shocking financial crisis of Central Coast Council.

Dick Persson AM is set to hand down his final report on financial crisis of Central Coast Council.

The final report into the financial crisis of Central Coast Council will be delivered on April 15.

Interim Administrator Dick Persson will hand down his report at an extraordinary meeting to be held at the Wyong chambers on Thursday at 10.30am.

Mr Persson will finalise his views of the crisis and set a path forward for the embattled council as new chief executive officer David Farmer takes the helm on April 12.

The report will not only be made public but will also be sent to NSW Local Government Minister Shelley Hancock, who has just over two weeks to decide whether the suspended councillors will return.

A decision will be made on the suspended councillors by April 29.

It comes a week after Central Coast Parliamentary Secretary Adam Crouch stated he will do “everything possible to ensure the councillors never return”.

Councillors returned to offices for a financial briefing last week Mr Persson inviting them back to ensure they are prepared and up to date with the financial crisis in the event they return.

Ms Hancock has until April 29 to either reinstate the councillors or retain the suspension and order a public inquiry.

The councillors were suspended in October 2020 after the news broke that council was facing “liquidity issues”. At the time the reported debt was $89m however this has since been revealed as $565m which has been accrued over the past four years.

Mr Crouch said he would directly call on Ms Hancock not to reinstate he councillors. Picture: Sue Graham

Mr Crouch said he was petitioning Ms Hancock directly for a public inquiry.

“A public inquiry would expose who was responsible and help to ensure these terrible mistakes and failings are never repeated,” he said.

“I support the petition which is being presented to the NSW Parliament in May, but I am going one step further by directly petitioning the Local Government Minister for a Public Inquiry.

“The Administrator has invited the councillors to attend council briefings, but I will do everything possible to ensure the councillors never return.”

Local Government Minister Shelley Hancock has until April 29 to determine the fate of Central Coast Councillors. Picture: Christian Gilles / NCA NewsWire

At the time of the suspension in October, council was unable to pay its staff forcing the State Government to step in.

At the time Ms Hancock said “the local community is sick of excuses. There is no question that council needs to be held responsible for these failures.”

The suspension was initially three months however Ms Hancock extended it in January.

Mr Persson said while a decision had not been made, it was important for councillors to be briefed on the financial situation and changes at council in the event they return.

They were invited to two briefings; one on finances and the other to meet Mr Farmer.

The suspended councillors will meet new CEO David Farmer.

“I would expect those suspended councillors committed to the future of the Central Coast, and their role in it, to make all possible efforts to attend,” Mr Persson said.

Mr Persson said the options on the table for Ms Hancock included returning the councillors or further suspending them and ordering a public inquiry. A public inquiry would go beyond the September election, meaning the council would be under administration for a three-year term.

He said if the councillors return, Ms Hancock could implement “control orders” such as being unable to alter any decisions of the administrator or change the budget.

“We have to be prepared for both scenarios,” Mr Persson said.

REFERENDUM TO GO AHEAD

A referendum question on the number of councillors and the ward system has been set for the 2021 Local Government election in September.

Mr Persson has confirmed that the questions will be:

“Do you favour a reduction in the number of Central Coast Councillors, from fifteen to nine, and the removal of wards? This will result in nine Councillors with all electors voting for all nine Councillors, and all nine Councillors representing the whole Central Coast.”

The referendum will go ahead in September.

Mr Persson set the question following community consultation on the issue which revealed 78 per cent of participants wanted to reduce the number of councillors while 55 per cent want to abolish wards.

Mr Persson has maintained that putting on 15 councillors at the time of the amalgamation was a mistake.

“This merger hasn’t seen a united community,” he said. “The wards haven’t worked well.”

He said a reduction to nine councillors with no wards would see councillors working together for the entire region.