2008 Port Macquarie-Hastings Council dismissal

[1] The project, initially a joint venture with the management of the neighbouring shopping centre, Port Central, was originally expected to cost the Council A$7.3 million.

Drew was critical of the process throughout, maintaining that errors had been made and misinformation had been accepted as fact; however, the New South Wales Urban Task Force, a property development lobby group, believed the sacking served as a warning to other councils to stick to "core responsibilities".

[5] In October 2006, the NSW Department of Local Government announced it would investigate the council's financial management and would try to determine whether it properly considered the impact the added costs could have on its other functions.

[9] On 21 May 2007, Councillors Lisa Intemann and Jamie Harrison, who believed the council had exceeded its mandate and failed to consult with the community, led a public rally in Port Macquarie.

The Mayor, Rob Drew, believed the centre development should be an exciting time for Port Macquarie and was critical of opposition to the project, characterising it as "slanderous accusations" and "fomenting discontent".

"[12] Harrison meanwhile told ABC News, "The report has said categorically that [the] Council has lied to the community about the cost of the arts centre at every opportunity it's had and it's put a gloss or a spin on it".

The National Party, whose members were dominant on the council,[5] and MLC Melinda Pavey had been particularly critical of the actions of the Department of Local Government in the General Purpose Standing Committee.

[15] The mayor expressed disappointment, asserted the methodology of the earlier Section 430 investigation was faulty, and believed the council's management and decision-making processes would be vindicated.

He said of the development, "What seems to have happened is that a reasonable community facility has been treated by the Council as an icon which must be built come hell or high water, regardless of the cost to ratepayers."

[1][20] The New South Wales Urban Task Force, a property development lobby group, believed the sacking served as a warning to other Councils to stick to "core responsibilities",[3] and in late March, the administrator adopted stricter financial measures listed in an independent review of the project.

On 20 January 2009, administrator Dick Persson announced his decision to step down at the end of the month, largely due to the demands of being away from his Sydney home for several days a week.

He described the Glasshouse project as a "wrong decision" by the council, attributing it to "woolly thinking with the best of intentions from people not experienced with planning and delivering major capital works.