North Lake Macquarie residents claimed a "victory for democracy" after Lake Macquarie City Council passed a motion to hold off on its controversial lead contamination clean-up policy.
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Last week a packed public meeting at Argenton called on the council to scrap proposed changes to its Development Control Plan (DCP) that would make a blanket assumption 3000 properties are polluted with lead from the former Pasminco smelter that closed in 2003.
Council had been pushing to implement a standard remedial action plan that sets out how to deal with lead contamination in Boolaroo, Argenton and Speers Point.
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But on Monday night Liberal councillor Jason Pauling successfully moved an urgent motion seeking further advice about the policy and its impact on residents.
Cr Pauling wanted council to seek an urgent meeting with relevant state government ministers and senior staff about the plan and not progress its implementation until further advice was available.
"We have at the very least started a discussion to take a look at this and really investigate its impact," he said.
"I'm pleased with the outcome and pleased with the support."
Residents are fighting the proposed changes to the DCP describing it as a way of making them "officially responsible for pollution they had nothing to do with".
They believe the proposed changes "fly in the face" of the NSW government's polluter pays policy.
Boolaroo Action Group spokesman Jim Sullivan described the council's decision as a "step in the right direction".
Mr Sullivan said the fact that 250 people turned out to a community meeting demanding that council ditch its policy was "powerful".
"The council has been at loggerheads with the community on this issue for too long," he said.
"This is the right decision that they have made to seek some advice before moving forward.
"The councillors are being informed by the people they serve on this issue and we are glad they are listening."
The proposed changes would impact 3000 residential properties within a lead contamination grid drawn up in 1995.
The highly-contentious grid is bounded by Boolaroo, Speers Point and Argenton and was used as a guide to determine where the highest levels of pollution from the smelter were.
It was originally established not to determine lead-contaminated properties, but to decide which children should be tested for elevated lead levels in blood.
Residents have organised a meeting with shadow environment minister Kate Washington and shadow minister for the Hunter Clayton Barr.