Council amalgamation grants: Inner west, Canterbury Bankstown Council seek legal action
Two Sydney councils are preparing to take the NSW Government to court over grants funding they say they were cheated out of following the state’s amalgamation debacle.
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Two inner-city councils have started discussions with top Silk, Brett Walker, SC, in the hope he may be able to assist in recovering funds that were supposed to be made available for amalgamation costs.
Inner West Mayor Darcy Byrne and his Canterbury-Bankstown counterpart Khal Asfour made the revelation at Monday’s parliamentary inquiry into the integrity, efficacy and value for money of NSW Government grant programs.
The inquiry also heard the NSW Government is working to suspend Mr Byrne from public office.
“The Office of Local Government contacted me by email informing me that they were working to suspend me from public office,” Cr Byrne said. “The Office of Local Government is an office of no probity, no transparency and no oversight.
“A system in which mayors and councillors can be undemocratically removed from office, as we were in 2016, and has been slated for me again ... if we have the temerity to object to pork barrelling and outright corruption.”
It comes as a legal stoush over a lack of funding for local government areas impacted by the amalgamation process has councils drawing swords.
Cr Byrne fronted the inquiry to call for the abolishment of the Office of Local Government in favour of a “independent commission”.
Meanwhile, Cr Asfour described the government’s Stronger Communities Fund as a “gold-rolled rort”, revealing he wrote to the then Local Government Minister Gabrielle Upton, requesting support from the NSW Government following the creation of the state’s largest local government area in 2018.
Mr Asfour was told three days after Hornsby Council had secured $100 million in funding that there “were no funds available” to the amalgamated council in southwest Sydney.
“There were enormous costs involved in amalgamation, but I was given a response to say that there was no money to help us with amalgamation,” Cr Asfour said.
“They didn’t mention anything about this grant — it was a process done in secret.”
Cr Byrne said the inner west community was “cheated” out of $25 million in funding based on financial assessment, while Cr Asfour said Canterbury Bankstown residents missed out on up to $40 million.
The two councils have briefed barrister Bret Walker to retrieve funds from the NSW Government.
“The damning revelations around $252 million scheme demonstrates the Office of Local Government was a clearing house for the Liberal and Nations,” Cr Byrne said.
Hornsby Council general manager, Steven Head, revealed a very different scenario when it came to applying for the NSW Government funding compared to his inner-city colleagues while also calling for a further $168 million in funding from the government.
Mr Head said he was contacted by the Office of Local Government urging the council to apply for funding on June 27, the following day council received an application form which had already been filled in detailing $50 million in funding would be granted to the rehabilitation of Hornsby Quarry, meanwhile a further $40 million would be spent on the development of a sporting precinct at the Westleigh Waterboard site.
The general manager said despite receiving the funding two days after he was contacted by the Office of Local Government, Hornsby Council was yet to complete and submit a business case to the NSW Government on the multimillion-dollar projects.
Mr Head was questioned over the interest generated through banking the massive $90 million grant funding by Labor MLC Courtney Houssos, where he revealed the interest earned would be retained by council for future spending.
Hills Shire Council general manager Michael Edgar and Penrith City Council city presentation manager John Gordon said neither council had recieved funding under the program.
Local Government NSW president, Sydney councillor Linda Scott, said there has been “widespread concern on NSW Government grants and the exceedingly large amount of money delivered to local councils before the last state election”.
“Local government NSW supports the fair allocation of grant funding regardless of political affiliation,” she said.
“As the peak body for Local Government, if we hear from government that councils are eligible for grants we would provide information for councils on the application process.
“With this grant, there was very little information about how to apply.”
In June 2018, Hornsby state Liberal MP Matt Kean revealed to NewsLocal Hornsby Council secured $100 million in funding, rather than the reported $90 million.