CEO letter to Office of Local Government and Tasmania Police

Published on 31 July 2026

councilnews.png

As per the Hobart City Council resolution from Monday night’s closed council meeting, the City of Hobart Chief Executive Officer Michael Stretton has today sent the following letter to the Office of Local Government and Tasmania Police.

Elected members’ lounge matter and associated governance issues

I write further to a resolution of the Hobart City Council on 27 July 2026 regarding the removal of refreshments and other goods from the Elected Members’ Lounge which was identified in January 2024 and the City of Hobart’s subsequent management response.

Council has requested that the matter be brought to your attention for consideration, together with any material already held by your office. Specifically, Council has resolved that I write to you and advise that Council:

  • Notes that relevant matters are presently before appropriate independent authorities;
  • Makes no finding concerning the conduct of any person while those processes remain incomplete; and
  • Requests that Council be advised of any outcomes when lawfully able to be informed.

Background

In late 2023 and early 2024, Council officers identified unusual levels of stock consumption within the Elected Members’ Lounge. A review of CCTV footage undertaken in January 2024 identified occasions where items were removed from the lounge by Cr Zelinda Sherlock and an associate.

Although the footage confirmed the removal of items, it did not clearly identify the full nature or quantity of items taken. While stock reviews indicated that refreshments, including soft drinks, confectionery, snack foods and alcohol were missing or consumed within the Lounge, the records were not exhaustive, and it was not possible to conclusively determine responsibility for the overall stock reduction.

The matter was brought to the attention of, and considered by, the then Acting Chief Executive Officer, who met with Cr Sherlock on 23 January 2024. A contemporaneous file note of that meeting records that Cr Sherlock stated that she believed the refreshments formed part of the benefits associated with the Elected Member role and advised that the practice had occurred over a number of years. Cr Sherlock apologised for the misunderstanding and undertook not to continue, having been informed that refreshments provided in the Lounge were intended for consumption while undertaking Council duties.

After consultation with the relevant officers, the Acting CEO concluded that the policy in force at the time did not expressly prohibit the removal of refreshments from the Lounge or require on-site consumption. Having considered Cr Sherlock’s explanation and other available information, the Acting CEO determined that no further action was warranted and recommended the policy be clarified. Council subsequently amended its Elected Member Development and Support Policy in August 2025 to expressly state that refreshments are intended for consumption whilst undertaking Council business within the Town Hall.

Subsequent Consideration

In early 2026, the matter became the subject of Questions on Notice and Notices of Motion at meetings of Council, as well as requests for information made under relevant legislation. In responding to those matters, Council carefully considered issues relating to access to the Lounge, storage of alcohol, privacy and the use and retention of CCTV footage, and pathways for referral of alleged Elected Member misconduct.

Council also obtained independent legal advice from an external legal firm. The advice concluded that the Acting CEO's preliminary fact-finding enquiries were within the powers and functions of the office and that it was open to the Acting CEO, on the information available at the time, to conclude that no further action was warranted.

The advice further noted that:  

  • The responsibility for conducting formal investigations and making findings regarding alleged misconduct rests with the relevant independent statutory bodies rather than a Chief Executive Officer. This was reinforced by the absence of any express policy prohibition at the time; and
  • Any independent investigation could consider additional factors and reach its own conclusions based on the facts and circumstances.

Referrals to External Authorities

Council referred the matter to Tasmania Police in early March 2026. Following review, Tasmania Police advised that there was insufficient evidence to establish the elements of the offence of stealing and that no basis existed for a criminal investigation or further action.

The matter was also referred to the Integrity Commission and the Office of Local Government. Advice received following a preliminary assessment indicated that the allegations did not appear to fall within the offences prescribed under the Local Government Act 1993, including misuse of office provisions. The Integrity Commission has also not advised of any intention to investigate.

Request

Notwithstanding previous consideration by Tasmania Police, the Office of Local Government and independent legal advisers, differing views continue to exist regarding both the conduct itself and the adequacy of the City of Hobart’s response.

Given those differing views, the ongoing public interest in the matter, the importance of maintaining confidence in local government governance arrangements, and consistent with the Council’s direction, I respectfully refer this matter for any further consideration your offices consider appropriate.

The City of Hobart will continue to make available any additional records, correspondence, file notes, CCTV material, legal advice, Council reports and supporting documentation should they be requested.

 

Yours sincerely,

(Michael Stretton)

Chief Executive Officer

 

Back to top