Hunter's Hill Council v Minister for Local Government; Lane Cove Council v Minister for Local Government; Mosman Municipal Council v Minister for Local Government; North Sydney Council v Minister for Local...

The case involved appeals by several local councils, including Hunter's Hill, Lane Cove, Mosman, North Sydney, and Strathfield, against decisions of the Land and Environment Court concerning proposals for the amalgamation of local government areas. The primary dispute centred on the validity of examination and reporting processes undertaken by delegates appointed to assess these amalgamation proposals under the *Local Government Act 1993* (NSW). The appeals were heard by the Court of Appeal of New South Wales.

The legal issues before the Court of Appeal included whether the proposed amalgamations created a single area of contiguous land as required by section 204(3) of the Act, particularly where local government areas were separated by a river. Additionally, the Court considered whether a delegate constructively failed to exercise their function by not properly examining mandatory considerations, specifically the financial advantages and disadvantages of a proposed merger, due to the non-disclosure of an underlying report. The question of whether this undisclosed report constituted adverse material and whether public interest immunity or confidentiality claims were validly made in relation to it were also central to the proceedings.

The Court of Appeal found that the proposal to amalgamate Hunter's Hill, Lane Cove, and Ryde local government areas was invalid because it did not propose the creation of a single area of contiguous land, as a river separated the areas and a bridge did not render them contiguous for the purposes of the Act. Furthermore, in relation to the proposed merger of Strathfield, Burwood, and City of Canada Bay, the Court determined that the delegate had constructively failed to exercise their function by not adequately considering the financial advantages and disadvantages of the proposal, partly due to the non-disclosure of a significant underlying report. The Court applied principles of administrative law concerning mandatory considerations, procedural fairness, and the proper exercise of statutory functions.

Consequently, the Court of Appeal allowed the appeals by Hunter's Hill, Lane Cove, and Strathfield Councils, setting aside the previous Land and Environment Court orders and declaring the respective amalgamation proposals invalid. The Court also set aside the delegates' reports and the Boundaries Commission's comments, ordering remittal for further examination by a different delegate in Strathfield's case. The appeals by Mosman and North Sydney Councils were dismissed. The Minister was ordered to pay the costs of the successful appellants in both the Court of Appeal and the Land and Environment Court.