Councillor behaviour, WHS compliance, financial and organisational reform come under the performance improvement order issued to Snowy Monaro Regional Council by NSW Local Government Minister Ron Hoenig. Image: Google Earth/OLG.
Snowy Monaro Regional Council has been issued a performance improvement order (PIO)* by the NSW Minister for Local Government, mandating immediate action to address concerns over councillor conduct and financial management.
The order, formally tabled at yesterday’s (20 February) ordinary council meeting, was signed and issued by the minister Ron Hoenig on 6 February, details alleged breaches of workplace safety and councillor conduct while also raising concerns about continued financial sustainability of the council.
It outlines three key areas the organisation and individual councillors must address over a 12-month period.
These include ensuring councillor behaviour – during meetings, in correspondence and on social media – aligns with the council’s code of conduct and code of meeting practice.
The council is also required to demonstrate progress in implementing financial and organisational reforms to ensure long-term sustainability.
Work, health and safety risks (WHS) affecting council staff must be also be addressed as a priority.
The minister had previously issued a PIO notice of intent to the council in December 2024, citing concerns over councillor behaviour and doubts about the council’s commitment to financial sustainability.
Although the council did not respond at an extraordinary meeting on 23 December, councillors sought further clarification from the minister in January, raising questions about the order’s duration, handling of code of conduct complaints, and requirements for maintaining a minimum balance of $500,000 in unrestricted funds.
The council also invited minister Hoenig to visit the region and discuss governance challenges directly.
According to the Office of Local Government (OLG), failure by the council to comply with the PIO will result in additional intervention measures, including suspension, appointment of an administrator, public inquiry, or compliance orders for individual councillors.
A key condition of the PIO required all councillors to sign a formal undertaking regarding their behaviour within seven days of receiving the order.
A spokesperson for the OLG has confirmed that all councillors have now responded.
The council is now required to submit regular progress reports to the OLG, which will assess whether improvements have been made.
If satisfactory progress is achieved, the minister will confirm no further action is necessary. If not, further intervention could be imposed.
The PIO will remain in effect for 12 months, though the minister has the authority to extend it.
It comes amid declining public satisfaction, with a 2024 Taverner Research Group survey showing a drop in approval ratings for the council, with residents rating the council’s performance at 2.33 out of 5 in 2024 — down from 2.39 in 2023.
The drop in satisfaction highlights ongoing frustration among residents regarding the council’s ability to manage local affairs effectively with road infrastructure, the challenge of balancing development with community needs and council leadership and governance rounding out respondents’ top three priority areas.
Snowy Monaro Regional Council is one of seven councils in NSW currently under a PIO.
In related news, Snowy Monaro Regional Council is also seeking a permanent CEO to replace interim CEO Stephen Dunshea, whose contract ends in June. Dunshea joined the council on a six-month contract after former CEO David Hogan resigned in October 2024.
* The performance improvement order sets out a range of mandatory reforms aimed at restoring effective governance and financial oversight. These include structured governance training for councillors, engagement of an independent governance expert, and an independent financial review.
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