Woollahra mayor defends costs of launching appeal in face of mounting court costs

WOOLLAHRA Mayor Toni Zeltzer has defended the cost of launching an appeal against last week’s court decision over their merger with Waverley and Randwick.

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WOOLLAHRA Mayor Toni Zeltzer has defended the cost of launching an appeal against last week’s judgment which paved the way for a merger with Randwick and Waverley.

The council could front the Court of Appeal — the highest court in NSW — as early as Monday to request a hearing date and the fate of the council could be known within two months.

The Wentworth Courier has been told the appeal is expected to cost at least $100,000 — for barrister’s fees — after the law firm which has represented the council in its amalgamation battle offered to handle the appeal for free.

It is understood the lawyers would waive the fees because they believe the grounds for appeal are strong.

The council has spent $692,000 to date but were last week ordered by Chief Judge Brian Preston in the Land and Environment Court to also pay the government’s costs, expected to tip the bill over the $1 million mark.

“But if we win the appeal, the costs will flow the other way and the State Government’s costs are expected to be considerably less than ours,” Ms Zeltzer said.

Mayor Toni Zeltzer outside Woollahra Council. Picture: Craig Wilson

Councillors unanimously endorsed a decision at Monday’s meeting to proceed with an appeal after a secret briefing with the lawyers.

“Councillors carefully considered the advice by our legal representation who indicated there are good grounds for an appeal,” she said.

“The legal costs of this fight are not to be dismissed and certainly they weigh heavily on the minds of all councillors.

“But the one-off cost of our challenge pales in comparison to how Woollahra residents will be hit with an annual increase in rates of between $7 million and $17 million.”

Ms Zeltzer said Woollahra residents would be disadvantaged by a merger because the council’s representatives would be “grossly outnumbered” on an eastern suburbs super council and would lead to the lion’s share of ratepayers’ money being spent in Randwick and Waverley.

Woollahra councillor Katherine O'Regan has some concerns about the cost of pursuing an appeal. Picture: Craig Wilson

Woollahra Councillor Luise Elsing said key commercial centres like Double Bay would now have to compete for ratepayers money with areas like Bondi and Maroubra.

“We will be competing with projects outside the council area like Bondi Pavilion,” she said.

A couple of councillors were not entirely comfortable with the added costs of appealing, including Katherine O’Regan and Susan Wynne.

“My preference was not to appeal but I didn’t have the numbers so I didn’t oppose it,” said Ms O’Regan.

“This only frustrates and delays the process because we are not winning the battle.”

Ms O’Regan said money spent on legal fees could have been better spent in the community, especially when the council’s budget surplus usually averaged just $40,000 a year.

Council staff insisted legal costs would be funded out budget reserves with no impact to our services.

Woollahra councillors Anthony Marano, Luise Elsing, Toni Zeltzer and Matthew Robertson

The State Government has argued the merger would save ratepayers $149 million over 20 years.

Waverley Mayor Sally Betts said while she respected Woollahra’s right to appeal, any further action would only increase the cost burden to ratepayers.

“Once the council is proclaimed, then all the assets and liabilities of the three councils belong to the new council, and it would be forced to pay the bill,” Ms Betts said.

“I’m not a lawyer, but have reading the chief judge’s report, it would seem to me that he dealt with the issues and it’s probably now time for Woollahra to go ahead with the merge.”

She said the decision to appeal was “disappointing” for Woollahra staff.

“They want to understand what their future is,” she said.

“The comments I get in the street in Woollahra is that the council has aright to argue with the State Government, but now it’s lost, they should give up and start looking after their own to ensure their interests are best served in the new council.

“What disappoints me is that Woollahra keep saying that the residents will be lumped with a huge impost on their rates and that’s simply not true.

“There is a public document available and when we look at the rates, they point to the worst case scenario which the three councils have agreed they would never do.”

Randwick Mayor Noel D’Souza urged Woollahra to “get on with the job” of creating a new eastern suburbs super council.

“Any appeal will only delay the inevitable and cost ratepayers even more money and time,” he said.