Woollahra Municipal Council v Minister for Local Government & Ors

Woollahra Municipal Council (the Council) sought judicial review of a decision by the Minister for Local Government (the Minister) to dismiss the Council's elected councillors and appoint administrators. The dispute arose from the Council's failure to adopt a new planning instrument, the Woollahra Local Planning Panel (the Panel), which had been recommended by the Sydney East Joint Regional Planning Panel. The Minister's decision was made under section 233(1)(b) of the *Local Government Act 1993* (NSW), which permits the dismissal of councillors if they have failed to perform their functions.

The primary legal issue before Gageler J was whether the Minister's decision to dismiss the councillors was lawful. This involved determining whether the Council's failure to adopt the Panel constituted a failure to perform its functions within the meaning of section 233(1)(b) of the *Local Government Act 1993* (NSW), and whether the Minister had properly exercised the power conferred by that section. The court also considered whether the Minister's decision was affected by jurisdictional error.

Gageler J reasoned that the Council's statutory obligation to adopt a new planning instrument, as directed by the Minister, was a fundamental function. The Council's persistent refusal to adopt the Panel, despite repeated directions and warnings, amounted to a failure to perform this essential function. His Honour found that the Minister had acted within the scope of the power granted by section 233(1)(b) and that the decision was not vitiated by jurisdictional error. The Council's argument that the Minister's decision was unreasonable was rejected, as the court found that the Minister had a proper basis for exercising the power.

The application for judicial review was dismissed.