Allegations have been directed at a decision made by Ballina Shire Council (BSC) regarding a project awarded to a business affiliated with one of its councillors. On investigation, the alleged actions were found to be legally permissible, and due process was followed.

This disturbance has caused undue angst and friction at council and to the business under question.

A councillor made claims that a job had been given to another councillor's business under preferential conditions. 

The claim states, “Council General Manager Paul Hickey has confirmed to council that no official tender process was used when Premium Solar Ballina was awarded a contract worth $70,812 to install 227 solar panels on the town swimming pool.”

In reply to these allegations, the General Manager Paul Hickey states that “Council’s procurement procedures require three documented quotations for contracts up to $250,000. Three documented quotations were obtained for this contract.

“Ballina Shire Council has been fully compliant with the NSW Local Government Act, Regulation and Council’s procurement procedures.”

Mayor Sharon Cadwallader confirmed that “I did get a legal opinion from local government New South Wales, and due process was followed according to that legal advice.”

Mr Hickey confirms, “Councillors are permitted to be involved in businesses that conduct transactions with council, provided there is no political involvement, conflicts of interest, or lack of separation between the Councillors and the business.

“This was not political, as it involved the procurement of a specified solar panel installation, through three major solar panel providers in the Ballina Shire providing fixed quotations for a set specification.

“The quotations were reviewed by three staff, with the technical expertise to make a decision on the preferred supplier.”

The claim also states, "In response to questions I put to BSC, the General Manager claimed the deal had been signed off at “Section Manager level, without any review by Directors or the General Manager". The July monthly meeting of council heard the GM was in Japan on holiday at the time the contract was awarded.

“Furthermore, there are set rules preventing junior members of staff talking to or conducting business with elected councillors, because there is a clear power imbalance.”

The General Manager (GM) was on annual leave during the two-week period the three quotations were received, and a decision made on the preferred contractor.

In the absence of the GM, a designated senior staff member assumes responsibility for decision-making and delegations. The Director – Civil Services, was the acting General Manager during this period.

Mr Hickey said, “The purchasing decision was made at a Section Manager level with a procurement authorisation. This decision did not require the involvement of the General Manager, acting or otherwise.

“The critical point is that three set price quotations were received. The chosen supplier was significantly cheaper.

“Three experienced staff, with the necessary technical expertise, reviewed the quotations and selected the quotation that provided the best value to the community.

“There was no power imbalance, the decision was based on pricing and a specification.”

The claimant was given the opportunity to stand down and atone for what had transpired at a council meeting. However, he said, “He would not be acceding to an unusual decision made by the council for him to issue an apology for going public with his concerns over the way the matter was handled and therefore “bringing the council into disrepute."

The council minutes reflect that the claimant was called on to apologise to the parties put into question. It was universally adopted by all at council with the exception of the councillor blamed, who abstained from the vote, and the claimant, who was against the decision.

The notoriety surrounding this decision has caused angst at BSC. The proceedings were verified and legal; however, as Mayor Cadwallader states, “Did it pass the perception test, the pub test? No, it didn't.” 

“Those that have applied for jobs at Council may feel like that's too soft an approach, but these are the rules.”

Mayor Cadwallader and Mr Hickey confirmed that “Council will be writing to the Office of Local Government to seek feedback on suggestions that any council could potentially implement, to assist in managing situations where a councillor, with a declared interest in a business, obtains work from a council, through a fair and transparent process.”