Should Byron Shire ratepayers help cover the legal costs of councillors and council staff who find themselves defending legal action while carrying out their official duties?
That’s the question underpinning a draft Byron Shire Council policy now on public exhibition, setting out when the council will – and won’t – reimburse legal expenses incurred by elected representatives, staff and authorised delegates.
The policy, first adopted in 1995 and now under review, states that council officials should not suffer financial loss when defending legal action arising from duties performed in good faith on behalf of the council. It allows the council, subject to the circumstances of each case, to indemnify or reimburse reasonable legal costs associated with matters including defamation proceedings, civil claims, NSW Civil and Administrative Tribunal matters and other regulatory proceedings.
The revised draft also makes clear where assistance will not be available. Council will not reimburse legal expenses arising from criminal conduct, breaches of road rules involving council vehicles, conduct unrelated to official duties, or defamation actions initiated by a council official.
The review proposes narrowing the definition of a “council official” by removing administrators and council advisers from the policy, limiting assistance to councillors, council staff and authorised delegates. It also tightens the wording around the circumstances in which financial assistance may be provided.
Any legal costs successfully recovered through a court or tribunal would have to be repaid to the council.
Policies of this kind are common across NSW councils, reflecting the principle that elected representatives and staff acting lawfully on behalf of their organisations should not be personally exposed to legal costs. However, they have occasionally attracted public attention elsewhere when councillors have sought reimbursement for legal expenses arising from high-profile disputes, particularly defamation proceedings.
The draft policy was placed on public exhibition following a council resolution in June. If no submissions are received, it will be adopted without further amendment.
To have your say, go to: https://www.byron.nsw.gov.au/Council/Report-Requests-Feedback/Public-Notices/Exhibition-of-Draft-Legal-Costs-Assistance-to-Council-Officials-Policy
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