Shoalhaven City Council is being investigated for their handling of the Tomerong Quarry which ceased operations in 2017 after multiple reports of operators breaking the rules.
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The investigation was confirmed during a senate hearing in state parliament on Monday after Independent MLC Justin Field questioned South Coast MP Shelley Hancock over the issue.
Council have been criticised for not remediating the site after it has been left dormant for over five years and for issuing one only fine of $114,000 despite multiple reports of wrongdoing.
The fine was issued by council after quarry operators allegedly imported more than a thousand tonnes of fly ash, a carcinogenic material.
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In July, Mr Field made a complaint to the Office of Local Government over council's handling of the quarry and said the cost of remediating it would be more than $15 million.
He asked Ms Hancock whether she was aware of any complaints put forward to the office regarding the issue in Monday's hearing.
"I don't get involved in investigations if they are ongoing," said Ms Hancock.
The Department of Planning, Industry and Environment secretary Kiersten Fishburn said investigations are not discussed with the local government minister before decisions are made.
"This is a matter which is under investigation," said Ms Fishburn.
"I therefore can't comment to the outcome of that."
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Mr Field continued to question Ms Hancock about whether an investigation is underway. He referred to a letter from a resident regarding the quarry and said Ms Hancock responded with "I understand you recently received an acknowledgment email from the investigations team".
"I was not aware of the status of the investigation, if there was one even...I just referred it," said Ms Hancock.
"You were aware an investigation was happening?" said Mr Field.
"Well now you remind me, yes," she Ms Hancock.
Years of requesting for investigation
Tomerong community members expressed outrage over alleged lack of compliance and spent years reporting major compliance issues at the quarry to council.
Shoalhaven Mayor Amanda Findley had drawn out the terms of reference for an external investigation into the matter in June 2018, but a majority of councillors voted against it.
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