Wednesday 28 October 2020

Newcastle Councillor Faces Code of Conduct Investigation After Allegedly "Leaking" Information to the Press

BY ISABEL EVERETT 

An Independent Newcastle Councillor faced a censure motion at Tuesday nights Council meeting after being subjected to a independent Code of Conduct investigation.

The Council received the report on Tuesday night, which allegedly found Councillor Kath Elliott leaked "inflated" and confidential information about an office space at 12 Stewart Avenue leased by Newcastle Council, during a media interview in 2019. 

The investigator reportedly found Cr Elliott had “quoted a figure higher than the actual amount”, when speaking about the cost of the lease, inflating it by 45 per cent, knowing that it “had the potential to cause harm to Council’s reputation and mislead the constituency”.

It also reportedly found Cr Elliot had a “knowing disregarding of her obligations as a Councillor with respect to the protection, use and maintenance of confidential information”.

 Councillor Elliot says claims she inflated the figure are false. 

"The new premises on Stewart Avenue are the largest liability we have on our books, and I believe people had a right to know where their money was being spent and what the amount was."

"I have not inflated the figures, I have a copy of the lease. I said it was about $3 million per year, the lease is slightly less than $3 million per year, in black and white, and with C.P.I (consumer price index) I was not wrong, and I did not lie." 

"The 45% percent inflation of the figure, I do not know where they got this figure from." 

The full details of the lease were made public in October 2019, after the Lord Mayor sought permission from the building’s landlord to waive their commercial confidentiality, and correct the public record.

A statement on Newcastle Council's website says the Council pays the following amounts to lease the office space per annum; 

  • Rent - $2.080 million
  • Outgoings - $482,509
  • 99 car spaces - $272,250
  • Forecast rental income from the sublease of one floor with 20 car spaces - $500,000.
  • Net expense - $2.335m

Labor Councillor Matt Bryne says leaking the confidential and "infalted" information could of had serious implications for Council. 

"It could affect our commercial operations, if Councillor Elliot isn't prepared to comply with our code of conduct it makes it very hard for Council to run an organisation, when it's having to constantly look over its shoulder at the conduct and behavior of one Councillor." 

“The advice of the independent investigator was that a censure is the only mechanism available to address Cr Elliott’s continued poor conduct."

“In short, the independent investigation found Cr Elliott to be a leaker and a liar and she can't be trusted by journalists because she makes up figures as she goes in order to score cheap political points."

 Cr Elliot is calling on Cr Bryne to retract the statement she is a liar.

"If he doesn't I will be consulting my lawyers, and I will continue to work for the people of Newcastle and be open and transparent, and unlike Labor when I say open and transparent I mean it." 


Stewart Avenue Building, Image: Core Project Group