Push to ban developers from NSW councils

The NSW government is drafting legislative amendments to ban developers, real estate agents and associates from holding positions on local councils.

NSW Special Minister of State Don Harwin. Picture: Damian Shaw

The NSW government is drafting legislative amendments to ban ­developers, real estate agents and their associates from holding positions on local councils, with the matter expected to be debated in cabinet ahead of local government elections later this year.

The Australian has learned NSW Special Minister of State Don Harwin is currently examining changes to the Electoral Act that would prevent developers seeking local government preselection across all parties or even as independents.

Developers are already banned from making donations to the NSW Liberal Party but there is nothing preventing them seeking endorsements as candidates.

Mr Harwin declined to comment but numerous government sources confirmed legislative amendments were being prepared. The main legal adjustment would involve bringing the Act into line with a separate piece of legislation governing electoral funding, and which clearly defines what it means to be a “developer”.

NSW local government elections are due to be held on September 12, with preselection contests earmarked to commence in a matter of weeks, meaning the issue needs to be resolved as a matter of priority.

Environment Minister Matt Kean said he was strongly in favour of the proposal to ban ­developers, citing it as an integrity measure for all political parties. He said developers elected to local councils were often in direct or perceived conflict during debate on planning approvals and rezoning measures.

“Putting a developer on council is like putting Dracula in charge of the blood bank,” he said.

“We want to clean up the party. The public expects the Liberal Party to run candidates who will fight for community interests and not their own interests.”

Other government sources said their concern was that developers caused “reputational damage” to the party’s brand at the state and federal level and that candidates with no particular ­interest in core Liberal values were using the brand to lift their profile and get themselves elected.

“It does have a reputational ­effect,” said a Liberal source, who asked to remain anonymous.

“We should be pure as snow. We don’t want the party to be seen as the pro-development party.”

NSW Premier Gladys Berejiklian is understood to be a supporter of the proposal, and given her cabinet is comprised of a moderate majority, it is unlikely Mr Harwin’s submission will encounter great resistance.

But the matter was never supposed to reach the cabinet room or have wider political implications for other parties.

The changes were supposed to have been decided at a meeting of the NSW Liberal Party state executive earlier this month, and apply only to the Liberal Party.

Put up by moderate members and supported by Right faction leaders, the proposal was blocked by federal MP Alex Hawke, who leads the Liberals’ centre-right faction and controls one-third of the executive’s voting rights.

The proposal could not proceed without his support.

Changing the law is a means by which moderate MPs can override Mr Hawke’s opposition except, ­instead of altering rules for only the Liberal Party, it will mean all political parties will be banned from recruiting developers.

Mr Hawke was unavailable for comment.