The Cessnock City Council has been blasted as having a “lack of competence” in dealing with a major development proposal for the city’s airport. But the Independent Commission Against Corruption stopped short of supporting allegations of corrupt conduct.

Developer Duncan Hardie wants to build a 200-room Hunter Valley Accommodation Centre on a 3ha hotel site behind the Wine Country Tourist Information Centre near Cessnock Airport.

Mr Hardie claims the proposed redevelopment is no further advanced than when he filed the development application in 2003.

ICAC has supported Mr Hardie's claims that Cessnock City Council lacked "competence" in its handling of the hotel proposal but there was "insufficient information to indicate that council's failings are due to corrupt conduct", according to ICAC commissioner Jerrold Cripps, QC last week. However the ICAC has referred the matter to the NSW Local Government Department after finding the “council's lack of competence in dealing with these developments may be of interest to the department”.

The ICAC found “there appear to be a number of issues raised in council's involvement in the development” of the Hunter Valley Accommodation Centre compared with its handling of other projects at Cessnock airport.

"These issues, which include obstruction and delays, application of different guidelines for adjacent buildings, allowing the building of a fuel dump to impact negatively on the development, use of different guidelines for gauging visual impact of developments and the allowance of the illegal construction of buildings on adjoining land, are allegations that council has acted in a less than competent manner," Mr Cripps found.

Open in new window

A year ago the council was hit with a critical Local Government Department report into the council following a section 430 investigation that found the council was dysfunctional and at risk of corruption. It also said there was evidence of an "inappropriate culture" involving gifts and benefits. The council was given 12 months to address more than 20 recommendations.