Woollahra Council loses legal challenge against amalgamation plans, paving the way for statewide mergers
Woollahra Council mayor Toni Zeltzer has not ruled out an appeal after the council lost its legal challenge against the State Government’s merger plans
Wentworth Courier
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WOOLLAHRA mayor Toni Zeltzer has not ruled out an appeal after the council lost its legal challenge against the State Government’s merger plans.
There was standing room only in the Land and Environment Court today, where Chief Judge Brian Preston ruled the council had not established any of its grounds of challenge and ordered it to pay the State Government’s costs.
The decision clears the way for a three way merger with Randwick and Waverley.
As Woollahra’s challenge was seen as a test case, the ruling dampens the hopes of several other councils which have launched legal action against the Government.
Local Government Minister Paul Toole welcomed the decision and said the judgement was proof the Government had followed the requirements of the Local Government Act in regards to the proposed mergers.
His department would not release the Government’s costs to date, which are expected to be hefty.
Cr Zeltzer said she the judgement was “very disappointing” but was not yet willing to admit defeat as she told fellow councillors “not to look so forlorn” as they left the courtroom.
“Our legal representation will go through the 102 page judgment and will consider an appeal ... but that will depend on whether there are reasonable grounds as clearly we don’t want to spend ratepayers funds unwisely,” she said.
“We fought on behalf of the community and would like to thank the community and staff who supported us in the decision we made to pursue the legal challenge.”
The council has three working days to register an appeal.
“If we decide to appeal, we would have to put that to the councillors to make a decision as a collective.”
Cs Zeltzer said the court costs, which were at least $540,000 excluding the Government’s costs, was outweighed by the rate increases that would be imposed on Woollahra residents if the merger went ahead.
She said modelling indicated residents would be hit with an annual increase in rates of between $7m and $17m.
Woollahra Council’s main legal challenge was that the State Government failed to conduct a proper inquiry into the merger as required under the Local Government Act and did not give reasonable public notice of the inquiry.
The council’s lawyers also argued natural justice was denied to the council when it was not given access to the full KPMG report, including the methodology used to determine that savings of $149m would be made from a three way merger.
They also questioned whether the KPMG report, which formed the basis of the Government’s justification behind the merger, was independent.
“I find that Woollahra Council has not established any of its grounds of challenge,” said Judge Preston.
“The proceedings should therefore be dismissed. The applicant is to pay the respondents costs of the proceedings.”
Woollahra’s loss almost certainly obliterates the hopes of several other councils who have mounted legal challenges against the Government.
LEGAL CHALLENGES
Bathurst Regional and Oberon councils
Blayney Shire, Cabonne and Orange City councils
Burwood, City of Canada Bay and Strathfield Municipal councils
City of Botany Bay and Rockdale City council
Hornsby Shire and Ku-ring-gai councils
Hunter’s Hill, Lane Cove and City of Ryde councils
Mosman, North Sydney and Willoughby City councils
Shellharbour City and Wollongong City councils
Gundagai and Cootamundra
Greens MP David Shoebridge said the judgement was a setback for thsoe opposed to the State Government’s “arrogant forced amalgamation agenda”.
“What this judgment says is that there was no need for the public inquiry to actually inquire into the proposed merger and that there was no need for the delegate to review the economic case put forward by the government based on the flawed KPMG analysis,” Mr Shoebridge said.
“If that is the true state of the law then the entire public inquiry process can be a sham from start to finish.”
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