Newcastle lord mayor Nuatali Nelmes warned rival councillors at Tuesday night’s council meeting they were bringing the organisation into disrepute by suggesting it was trying to hide something by withholding June financial updates.
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The council resolved at the meeting to stop releasing June financial updates but continue monthly reports for the other 11 months of each year.
During an at times spirited debate, Cr John Church (Ind) repeated his assertions from a Newcastle Herald article last week that chief executive officer Jeremy Bath had acted “contrary to a motion of this council passed in November 2012, which directed the CEO to provide council with a financial report for each calendar month”.
“What have we got to hide?” Cr Church said. “The proposal before us is seeking to change the way financial information is reported.
“In other words, we’re being asked tonight to be less transparent than we’ve been since January 2013. There hasn’t been a great problem with reporting the June figures from the period of June 2013 until two years ago.
“It worries me that we have this cultural shift of trying to hide things rather than being open and transparent with our ratepayers.
“It’s their money, lord mayor.”
Cr Nelmes then issued a warning to councillors about questioning the integrity of council staff.
“I would just like councillors to make a note that there have been a number claims tonight by councillors that somehow figures are hidden and that there is something untoward going on,” she said.
“That actually brings council into disrepute, making unsubstantiated claims like that.
“I would warn councillors that language like that is actually a breach of our code of meeting practice, and I would ask you to be very mindful of those allegations, particularly as they’re directed at staff members.”
Cr Nelmes said the Independents’ call to release the June reports was based on political opportunism and not fact.
Mr Bath told the meeting he believed it was his duty to withhold the June reports.
“The other point that I think needs to be made tonight is to respond to the allegation that there has been a breach, or perhaps a technical breach, of the resolution from 2012,” he said.
“It is my responsibility under the Local Government Act as the CEO of this organisation to ensure that, one, a resolution of the council is lawful, and two, that it is done in a means that allows councillors to carry out their duties as councillors.
“And a part of carrying out your duties as councillors is providing you with accurate information.
“If we go back over the last five years of preliminary end-of-year figures versus what is ultimately the audited figure, we are looking at a variance of between $5 million and $10 million for each of those five years.”
Cr Kath Elliott (Ind) backed Cr Church’s demand to see the June report, saying councillors needed the figures to “exercise our governance responsibilities”.
“If there’s nothing hidden, then why can’t we show people what it is?” she said.
Both Cr Church and Cr Elliott received applause from the public gallery after speaking.
Deputy mayor Declan Clausen (Labor) said the council had “just listened to the most ridiculous debate about hidden financials”.
“We have had numerous briefings about the end-of-year financial position of the council,” he said.
Cr Clausen said other large organisations routinely delayed releasing preliminary results because it took time to factor in depreciation, asset transactions, late invoices and other accounting adjustments.
Cr John MacKenzie (Greens) said he had no doubt the council’s internal and external auditors would ensure its finances were scrutinised properly but suggested the June reports continue so the council was not exposed to accusations of withholding information.
Councillors have not received the June reports in 2017 and 2018.
Cr Church said in the Herald report last week that the June figures might reveal a budget “overrun” associated with Supercars track construction.
Meanwhile, the council will spend “up to $20,000” sending Cr Carol Duncan (Labor) on a health and innovation study tour to North America next month.
The 11-day Cities Leadership Institute International Exchange on Health and Innovation trip includes Vancouver in Canada and the US cities of Portland, Cleveland, Washington, Baltimore and New York.
A report to councillors said the costs included a maximum of $11,500 to cover the study tour and another amount for international flights.
The council’s expenses policy says councillors can take premium economy flights overseas if they are available.
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Michael Parris
Michael Parris reports on politics for the Newcastle Herald. He started at the Herald in 1994 after working in the ABC Newcastle newsroom. Michael spent much of his career as a sub-editor before moving into political reporting in 2017. He was a finalist in the Sports Australia national media awards for his stories about a male-only tennis club in Newcastle. He has covered NSW and federal elections, state and federal budgets and local politics. He has also written extensively about the COVID-19 pandemic with a special focus on data analysis and the effects of lockdowns on the Hunter community.
Michael Parris reports on politics for the Newcastle Herald. He started at the Herald in 1994 after working in the ABC Newcastle newsroom. Michael spent much of his career as a sub-editor before moving into political reporting in 2017. He was a finalist in the Sports Australia national media awards for his stories about a male-only tennis club in Newcastle. He has covered NSW and federal elections, state and federal budgets and local politics. He has also written extensively about the COVID-19 pandemic with a special focus on data analysis and the effects of lockdowns on the Hunter community.
