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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2009-10-14 Daily Xml
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BURNSIDE CITY COUNCIL

The Hon. DAVID WINDERLICH (14:47): I seek leave to make a brief explanation before asking the Minister for State/Local Government Relations a question about the Burnside council.

Leave granted.

The Hon. DAVID WINDERLICH: The minister informed the council yesterday that she has granted an extension of time to her investigator (Ken MacPherson) to complete his investigation of the Burnside council. This leaves the important question of the status of its CEO (Neil Jacobs) and questions around the decision-making process followed by council in relation to the sale of the Chelsea Cinema unresolved for another four months.

Concerns hinge on whether Mr Jacobs was reappointed by council on 23rd June, following his resignation on 12 June, or whether he has effectively been an acting CEO since 12 June and, therefore, has been occupying his position illegally since 12 September. Those concerns have been raised by Burnside councillors on the basis of legal advice and, as the minister informed the council on 22 September, by the investigator (Ken MacPherson) himself. The minister also informed the chamber that approximately a week before being asked a question, which she answered on 22 September, she had written to the Burnside council outlining the investigator's concerns.

In yesterday's Eastern Courier Messenger, Murray Willis, of the Foothills Water Company, stated that he no longer recognised the authority of Burnside CEO Neil Jacobs and would challenge any decision signed off by Neil Jacobs. This statement is based on legal advice and effectively turns speculation about the implications of Mr Neil Jacobs' appointment into reality.

It should be noted that the CEO's powers under various acts include: the power to destroy a dog; order a landowner to take action to remedy a fire risk; sell, lease or hire out property; take court action to recover bad debts; sell land to recover unpaid rates; and carry out roadwork to allow water to drain into an adjoining property.

The CEO is also the public officer of the Burnside DAP (Development Assessment Panel) and is responsible for certifying the release of development plan amendments for consultation. It should be noted that, under section 273 of the Local Government Act, once the minister receives a report from an investigator she has the power to make recommendations, direct or sack a council. My questions to the minister are:

1. What action has the council taken to reassure the minister that the appointment by council of Mr Neil Jacobs on 23 June is not in breach of the Local Government Act?

2. Has the minister sought Crown Law advice on council's response?

3. Does the minister accept that receipt of an interim report from the investigator would empower her, if she thought it necessary, to direct the council to terminate the employment of Mr Jacobs?

4. Will the minister undertake to request an interim report on the status of Mr Jacobs and the council's decision making process in relation to Chelsea Cinema to ensure that she has the power to direct the council, if that is deemed necessary?

The Hon. G.E. GAGO (Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister Assisting the Minister for Transport, Infrastructure and Energy) (14:50): I thank the honourable member for his most important question. I have substantially put the answer to this question on the record previously. I have stated in this place that Mr MacPherson contacted the agency about some concerns that he had in relation to the CEO's contract of employment or his resignation and reappointment. Mr MacPherson, the investigator, asked that those concerns be passed on to the council.

The agency did pass on those concerns to the council, and since then I have been informed that the Burnside council has furnished legal advice to the agency that it believes that its process had been adequate. That advice or information contained in that obviously addresses matters within the terms of reference of the investigation, so that response has been promptly passed on to the investigator, Mr MacPherson, for further consideration. I need to make sure the record is quite clear: I did not pass on those concerns to mayor Greiner; it was the agency which emailed and phoned her about passing on the concerns of the investigator at that time.

I have every confidence in the investigator; he is an extremely well qualified man. He is the former auditor-general and former acting ombudsman. He is highly qualified and held in very high regard and is more than capable of conducting this inquiry thoroughly, and I am confident that he will do so. As I have already stated, I have full confidence in the investigator, and I am also confident that, if Mr MacPherson believes that there is any matter that he thinks I should act on prior to a report being furnished by him in relation to the findings of the investigation, I am sure he would do that immediately and, at least until this point in time, I have not received any such request. I believe the proper process is in place, and we should now wait until the outcome of that investigation.

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