Andrew McCullagh vs Mayor Mary Knowles: Inside the toxic stoush

A defamation suit, contempt of court claims, a charge under the Local Government Act, and RTI applications galore. Step inside one of Tasmania’s wildest political stoushes in memory.

One of the bitterest stoushes in Tasmania’s political history will reach a dramatic climax next month, after a colourful property developer who has waged a three-year social media campaign against a regional council put himself forward to dethrone its mayor.

For her part, Northern Midlands Mayor Mary Knowles said the campaign by Red Panda Property Group’s Andrew McCullagh, who is standing for mayor, is “hurtful” personally and “costly” to ratepayers.

“This is a political campaign Mr McCullagh wishes to have,” she said.

The latest skirmish in the war between Mr McCullagh, who runs the Northern Midlands Council Watch Facebook page, and the council occurred earlier this month, when the council made a complaint under the Local Government Act.

Mayor Mary Knowles, Northern Midlands Council. Picture: NMC

According to the complaint – described by Mr McCullagh as a “parting shot” from the council – he is charged with using and/or displaying the arms of the council without its approval.

He is alleged to have used the arms on his Council Watch Facebook page.

He will appear before the Launceston Magistrates Court on October 20 and has already entered a not guilty plea in writing, he told the Mercury.

In an unrelated matter, Ms Knowles and General Manager Desmond Jennings are suing Mr McCullagh for allegedly defamatory statements he made on his Facebook page in 2019–20. The matter remains before the courts and Mr McCullagh has denied the allegations on a number of bases, including contextual truth, justification and honest opinion.

Mr McCullagh has recently responded by lodging a complaint that the duo, plus their lawyer Daniel Zeeman of firm Butler McIntyre and Butler, are in contempt of the Supreme Court in relation to the defamation matter.

Northern Midlands mayoral candidate Andrew McCullagh, a property developer born in Longford. Picture: Facebook

Mr McCullagh alleges a potential witness in the defamation suit, namely BMB employee Carlton Dixon, an associate of Mr McCullagh’s, was “initimidated” in a way “likely to deter them from giving evidence or to influence them in the giving of evidence”.

The respondents are yet to file their defence.

Mr McCullagh himself was fined $300 with no conviction recorded in April this year, after he was found to be in contempt of court, after he published privileged documents relating to the defamation action to his Council Watch page.

The bitter history between Mr McCullagh can be traced back to 2019, when Mr McCullagh applied to rezone a large swath of land at 35 Drummond St, Perth for a residential subdivision involving hundreds of lots.

Both parties have vastly differing accounts of this terminal breakdown in relations.

Mr McCullagh, who maintains addresses at Longford, Sandy Bay and Swansea, alleged council offered to stump up $150,000 for the rezoning but then attempted to impose such onerous conditions it became unviable.

The $6m Campbell Town underpass, a frequent bugbear of Mr McCullagh. Here it appears flooded just weeks after construction. Ms Knowles said the underpass was a State Growth project. Picture: NMCW

Ms Knowles, however, said council continues to be keen to host the subdivision, but that they believe Mr McCullagh’s rezoning application to be “inadequate”, especially relating to stormwater drainage considerations.

“We have still have not received a compliant rezoning application, it’s a great area (for development), it just needs to be done correctly,” she said.

The wash-up of this dispute was Mr McCullagh’s creation of the Council Watch Facebook page, which he has consistently used to call council’s decision-making into question.

Among his litany of allegations are that council overshot its budget on a number of key projects, including the Campbell Town Recreation Ground Complex and Longford Recreation Ground redevelopments; that it has thrown good money after bad pursuing Launceston Airport’s owner in court for allegedly unpaid rates, and that it has frittered away funds on consultants and legal fees.

Mr McCullagh has supported his claims via a serious of Right to Information claims, some of which have required the intervention of Ombudsman Tasmania after council refused to hand over documents.

Ms Knowles countered Mr McCullagh’s assertions of waste and mismanagement by pointing to the Auditor-General’s latest report on council finances, published in March.

Council's sale of the Campbell Town Hall is another decision Mr McCullagh criticises strongly. He says its 'Community Purpose' zoning means it will sell for hundreds of thousands of dollars less than it might otherwise. Picture: Knight Frank Launceston

It showed the Northern Midlands had a total comprehensive surplus of $20.5m in 2020–21, the best performed regional Tasmanian council and better than several urban councils.

She said the redevelopment of sporting precincts in the Northern Midlands is a success story, rather than an albatross around council’s neck.

“When I first got onto the council in 2009, all sporting facilities were ageing, they were 60–70 years old and not fit for purpose,” she said.

“Now, most of them have been upgraded (or are in the process of being) and are brilliant facilities for the community.”

Mr McCullagh remains unapologetic for his conduct.

“If you want a decent council, vote for decent people,” he said.

“Roll on, October.”