Independent review of Derwent Valley Council underway

DECISIONS made by Derwent Valley Council over the past 22 months – the term of the current roster of elected officials – are being reviewed at the direction of the Office of Local Government (OLG).

Local government consultant, Paul West, is expected to complete an independent examination by December 31 this year, following Council’s agreement about its terms of reference, and duration.

The process was initiated by several factors, including concerns raised to the OLG by Council’s Audit Panel members, as well as a group of local groups and businesses. 

That group of 16 entities has now been identified. While the specifics vary, their issues largely revolve around Council’s engagement with, and funding arrangements involving each organisation.

The 16 are: TYGA FM, Historical Information Centre, Derwent Valley Concert Band, New Norfolk Anglers Association, German Shepherd Club, Derwent Valley Arts, the PCYC, New Norfolk Bowls Club, Tasmania’s Most Haunted, Derwent Valley Rotary, Derwent Valley and Central Highlands Tourism Association, and Nicholson’s Quarry. 

The sale of Kensington Park Racecourse and the operations of the New Norfolk Caravan Park, Peppermint Hill Landfill and the High Street Market have also been raised as concerns.

The name of the Business Derwent Valley group, while noted in the OLG correspondence to Council, was removed from the final wording of the ratifying resolution by an amendment from Cr. Justin Derksen.

At that September 26 meeting, Council voted to “authorise the Acting Director of Local Government and the Mayor to agree on an Independent Advisor with appropriate experience and expertise” to undertake the review “as soon as reasonably possible.” 

The review’s terms of reference, also agreed to by Council, note “certain governance and operational functions to ensure transparency, accountability and community confidence in its operations.”

The reviewer, Mr West, is examining two primary elements: the Audit Panel’s work over the past year and second, the “reasonableness of recent operational processes” relating to “contracts, leasing, major event grants or licensing” between Council and the 16 groups.

Mr West has the discretion, says the resolution, to review additional matters if “there is a reasonable basis to do so.”         

The list does not include the business, New Norfolk Distillery, whose rental dispute with Council is now before Tasmania’s Supreme Court. Nor does it include matters of leases and other arrangements with New Norfolk Rowing Club, which OLG says it’s separately reviewed. 

The 22-month period, also requested by Cr. Derksen and agreed by Council, coincides with period since the last municipal elections, held in October 2022. 

While many of the conflicts involving the 16 are largely public knowledge, Derwent Valley Council has since that election seen a two-year period of operational stability. 

In the four years previous, actions of successive mayors and general managers led to their premature resignations, while a councillor’s financial dealings initiated an Integrity Commission investigation that also forced a resignation.

Council and its management have acted quickly in response to the four-page review request from the acting director of local government, Mike Mogridge, received on September 19. 

A Notice of Motion from Mayor Dracoulis, proposing a “targeted independent review of council governance” was on Council’s agenda within a week. 

In getting ahead of issues arising from the review, the Mayor and council management have signalled they are confident about the outcome.