The NSW Minister for Local Government has commenced a further review into Kiama Council as a meeting to decide the fate of Blue Haven Bonaira draws nearer.

NSW Local Government Minister Ron Hoenig wrote to Kiama Mayor Neil Reilly in late December 2023 to inform him that he would undertake a further review into Kiama Council following the completion of a Performance Improvement Order (PIO).

A Kiama Council spokesperson confirmed that Minister Hoenig began the review earlier this month, and Council CEO Jane Stroud is assisting as required.

A spokesperson for the Office of Local Government confirmed to The Bugle that independent expert John Rayner was appointed by Minister Hoenig to review Kiama Council's situation

"Mr Rayner Mr Rayner is examining the Council’s response to its financial challenges and its delivery against the Performance Improvement Order, as well as identifying further steps that may need to be taken," the spokesperson told The Bugle.

"The Office of Local Government has continued to closely monitor the situation and will report to the Minister on whether any further action may be required."

Kiama Council says it cannot comment any further on the review, and questions should be directed to the State Government.

Kiama Council was hit with the PIO in November 2022 in an effort to stabilise its finances following years of instability, and submitted its final report to the Minister for Local Government in June 2023. Kiama Council says it met all compliance milestones of the PIO.

Mayor Neil Reilly and other Councillors are considering holding an extraordinary meeting on 1 February 2024 to review the Blue Haven Bonaira tender. This meeting has been slated since November 2023, and is “is the natural next step in the seven-month public tender process for the divestment of Blue Haven Bonaira, which all Councillors voted unanimously to commence on 28 February 2023,” according to a Council media statement. Kiama Council will issue a formal public notification of the extraordinary meeting tomorrow (19 January 2024).

Kiama Councillor Karen Renkema-Lang raised concerns about the divestment on multiple occasions, telling ABC Radio that, in her opinion, there was not sufficient information to make an informed decision that would be best for the community. In response, Mayor Reilly made misleading claims to Kiama Community Radio that Councillor Renkema-Lang only raised these concerns because “the vote didn’t go her way.” Mayor Reilly decided to move a motion to censure Councillor Renkema-Lang for raising her concerns in public.

Council will also consider the deferred Notice of Motion to stop the sale of Blue Haven Bonaira and initiate an investigation by the Office of Local Government into the sale process.

The motion would have been debated at Council’s ordinary meeting on 15 December 2023, but was deferred until the next ordinary meeting on 13 February 2024.

The announcement follows a call from the United Services Union (USU), which represents around 80 Blue Haven staff, to sack Kiama Council and appoint an administrator.

USU General Secretary Graeme Kelly OAM has called on NSW Premier Chris Minns to take action and provide certainty for the residents and staff of Blue Haven.

“Local Government Minister Ron Hoenig knows the Council is not acting in the best interests of the community and needs to go. A Performance Improvement Order issued to Kiama Council by the previous government has not resulted in any change.”

Kelly said the appointment late last year of a former Sutherland Council General manager to inquire into the finances of Kiama Council should be completed before the Council moves to sell Blue Haven.

“The community, the Council and the Minister need time to properly consider the report and the community’s views, rather than ramming this proposed sale through. A Council vote on the future of Blue Haven must be delayed until that can take place.”

This article was updated at 9:36pm 19 January 2024 to include comments from the Office of Local Government.