Some of the local media coverage of the recent dismissal of
Newcastle Council’s (now former) General Manager, Ken Gouldthorp, could give the
impression that the majority of councillors who voted for Mr Gouldthorp's dismissal committed
a heinous crime against humanity in parting company with him.
Mr Gouldthorp was appointed by the former Lord Mayor, Jeff
McCloy, and the Liberal and conservative Independent councillors who formed the
then dominant McCloyal voting bloc, soon after the 2012 council elections.
Jeff McCloy resigned after ICAC revelations about his role in
the political donations scandal that rocked the Hunter last year, setting off
two council by-elections in which the conservative Liberal/Independent bloc
lost its majority.
Given the obviously close relationship between Mr Gouldthorp
and Mr McCloy, many council-watchers speculated at the time that the McCloy
appointee might have preferred to move on to an organisational
environment more aligned with his own ideological predisposition.
But he stayed, and the tensions between him and non-McCloyal
councillors were as palpable and persistent as they were predictable.
Anyone who witnessed this tension play out at council
meetings could see that the relationship wasn’t going to last.
When the inevitable moment eventually came, at the 27
October council meeting, it was no real surprise.
So why the shock and horror from some - though not all - of
the local media, including speculation that “it might cost Newcastle ratepayers$1million if the council elect to pay [Mr Gouldthorp] out of his contract”.
Since August 2006, all NSW councils have had to use a
standard General Managers employment contract, developed by the NSW Department
of Local Government and approved by the NSW Minister for Local Government,
which covers all the things you’d expect in an employment agreement, including
termination.
Among other provisions related to termination, it states (in
clauses 10.3.5 and 11.3) that a council can terminate a General Manager’s
contract without notice provided it pays the employee either 38 weeks’
remuneration or the amount the employee would have received if the employee had
been employed for the full term of the contract, whichever is the lesser [my emphasis].
Clearly, the 38 week amount will be substantially less than
a pay-out for the remainder of Mr Gouldthorp's term, so - if the contract means what it says - that’s
presumably what Mr Gouldthorp will get.
The local media coverage chose to not even mention this most
likely outcome, in favour of speculating on an improbable one.
That’s not to say that the current council majority covered
themselves with glory in how they handled all this.
On the same night they dismissed Mr Gouldthorp, they pushed
through an entirely new set of council delegations with only a few hours’
notice to councillors, despite reasonable calls for deferral and public
exhibition to allow more time for scrutiny and deliberation.
The dismissal decision itself was subject to dubious procedural
manoeuvring on the night, involving Labor councillors moving a clearly
insincere rescission motion against the dismissal they’d just supported, so
they could vote down their pseudo-rescission motion and thereby prevent any subsequent
genuine ones.
Whatever the legality of these manoeuvers, it’s hardly what real
local democracy should look like, and it was a disappointing performance from the
councillors involved, who’ve previously criticised dubious meeting practices by
the former McCloyal majority.
It was an opportunity for these councillors to show that
they were better than their conservative predecessors; instead, they stooped to
their level.
They’ll now need to work hard to regain the moral high
ground they’ve lost in these shenanigans, especially in the face of overtly
hostile and biased elements in the local media, and in the light of having achieved
none of the open government reforms they promised during the by-elections that gave them their majority.
That’s if they’re not all swept away in a wave of council
amalgamations, of course….