Newcastle Council is in turmoil following the resignation of General Manager Lindy Hyam, with relations between councillors and the Lord Mayor breaking down. The crisis has escalated to the point where the council could be dismissed and replaced by an administrator.
Ms Hyam's resignation coincides with an ABC investigation into allegations that council staff misapplied planning laws by declaring two skate parks and a floodlight development exempt. The General Manager rejects the claims, despite documents obtained by the ABC suggesting otherwise.
Seven councillors expressed support for Ms Hyam on Friday, blaming her resignation on a strained relationship with Lord Mayor John Tate. Some councillors said they had lost confidence in the Lord Mayor's ability to run the city and called for his resignation.
Lord Mayor Tate responded by warning that if relations cannot be repaired, he would have no choice but to call in the Department of Local Government to appoint an administrator, which would effectively dismiss the council. Councillors who called for his resignation described the situation as a disgrace and accused the Lord Mayor of being a 'grubby sociopath'.
The councillors plan to seek legal advice on moving a vote of no confidence in the Lord Mayor. An extraordinary meeting has been scheduled for November 29 to determine whether the council can continue to function.
