Investigations around dismissing Dubbo Regional Council do not need to be undertaken, says Shadow Local Government Minster Greg Warren.
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Last week, Local Government Minister Shelley Hancock said she was concerned about Dubbo council and had contacted the Office of Local Government to look into whether the council should be dismissed.
If it goes ahead, all of the councillors would be dismissed and an administrator appointed in their place.
But Mr Warren - who grew up in Dubbo - said Ms Hancock was "inappropriately interfering".
"There has been no suggestion that the council has not been able to operate effectively from a business perspective," the shadow minister said.
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"There is no doubt the past six weeks in particular have been a difficult time for those at Dubbo Regional Council.
"But it is difficult for those at council to navigate their way out of these troubled waters when the minister is inappropriately interfering with the council and the process."
Mr Warren said there were "a number of serious allegations that those at the council are working through" but it was difficult to navigate the situation when the government was interfering.
He called on the NSW government to proactively assist council with navigating the allegations.
To suspend council, Ms Hancock said the councillors had to be no long longer be functioning properly or effectively.
"The NSW government will continue to watch the actions of councillors closely, including at the next extraordinary and ordinary council meetings, and if necessary will take action to ensure the council is serving the best interests of the local community," she said last week.
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