March 26th, 2025Community anger with release of Rex report

The previously confidential Local Government Inspectorate report  into Hepburn Shire Council and The Rex/Hepburn Hub has been published by Council Watch on its Facebook page.  

It has since been widely shared around the community with comments  across social media scathing.  

The report into the failed creation of the Hepburn Hub in Vincent  Street, Daylesford was started in 2019 but last September the LGI said  the investigation had been finalised and there was “insufficient evidence to  prove to the requisite standard of proof the commission of any disciplinary  breaches or criminal offences contrary to the 1989 Act”.  

“Accordingly, the LGI will not be taking any further action in respect of  the investigation. Nor will the LGI be publishing any report.”  

The LGI also requested all draft copies of the report be destroyed or  returned. It is believed all were watermarked with the name of the recipient.  

The Local was sent a copy of the report in 2021 but was told by the LGI  it was illegal to publish it in any form and to do so could lead to hefty fines.  

As a small publisher keen to continue to produce a free newspaper for its  community, and which cannot afford to be fined or stage a legal battle, The  Local decided not to publish the report .

The report released by Council Watch is dated June 2022 but is believed to be different to the April 2021 draft given to councillors and others  involved.  

The Local wrote to the LGI last week asking if any action would be taken against Council Watch, and now parts of the report had been published in metropolitan newspapers, was it no longer confidential, and would it be  formally released.

The LGI wrote back saying last September’s media release  had not changed but did not answer other questions.  

On its website, Council Watch has a piece titled The Rex – What  Happened? “What began as a well-intentioned initiative to create a  community hub in Daylesford, Victoria, spiralled into a financial disaster,  resulting in a cash loss of $5.6 million, reputational damage, and a failure to  deliver on community expectations.”  

In a media release issued last week, Hepburn Shire Council  acknowledged the apparently unauthorised release of the Local Government Inspectorate draft report on the Hepburn Hub at The Rex project.  

“Council also acknowledges that due to the report’s release, our  community will be feeling a range of emotions; frustration, anger, sadness,  discontent and discomfort. Council has been calling for the finalisation and  release of the LGI report for many years, to bring closure to the situation  and allow our community to move forward.  

“The way the confidential draft report has been made public is  concerning and council has formally written to the LGI to request a  thorough review of the situation.  

“As far as council’s awareness of the matters raised in the report, in 2021 a number of councillors and officers were provided with an earlier draft  for comment. However, they were under a legal obligation not to reference  receipt of the report or disclose its contents.

“This 2022 version of the report,  though, is unfamiliar to our organisation and councillors and council cannot  comment on its origins or accuracy.”  

Mayor Cr Don Henderson said the current council leadership (post-  2018) had implemented important improvements to governance, service  delivery, community engagement, and transparency.  

“The financial loss associated with the Hepburn Hub at The Rex project  was $5.65 million. This included the purchase of The Rex in 2016 for  $6.345 million, additional expenditure of $3.04 million, and proceeds from  the sale amounting to $3.74 million.  

“The $5.65 million is significant, however, it is important to be clear  to the community that the current rate cap variation and savings associated  with the implementation of our Financial Vision would still be required  even without it.

“The Financial Vision notes an annual shortfall of $4 million  per year across the 10 years so, had the loss associated with The Rex project  not been incurred, the shortfall would still have amounted to $3.5 million  annually.

“The community has every right to be disappointed, but any anger, attacks or threats are inappropriate and will not be tolerated. Over recent  weeks we have seen an increase in poor behaviour by community members  towards staff and councillors who continue to work hard to deliver services  and projects for the benefit of the community.”

 Community anger with release of Rex report  

On its website Council Watch calls itself “a team  of volunteers with a keen interest and history in local  government”.

“We seek to advocate on behalf of all  residents and ratepayers in Victoria. Local government has  very little oversight and makes its own rules. This leads to  consumers’ rights being removed or restricted.  

“We seek to help people know their rights and to  challenge council where they have acted inappropriately.  We seek to educate Victorians about local government and  create a fairer system for all.”  

Council Watch president Dean Hurlston, pictured above says “council bureaucracy is strangling the goodwill  in our communities, rates are ever increasing and service  standards are lower than ever, there are far more of us than  them”.  

Words & Rex image: Donna Kelly | Profile shot: Contributed