Cr Neoh admitted there were “certain individuals” making issues divisive, but the city’s finances were in good shape and decisions were still being made.

“We have very aggressive politics on council and no one would disagree with that,” Cr Neoh said.

“There’s a difference between aggressive politicking and a dysfunctional council in terms of business confidence.”

His comments come after Mr Purcell, now an Upper House MP for Western Victoria, implied that some councillors were likely to vote against expansion plans by Midfield Meat.

The company wants to build a milk processing plant and cold store at its abattoir near Merrivale and the application is in the hands of an independent planning panel that is yet to rule.

The final decision will be made by Warrnambool City councillors.

An additional application for a $5 million revamp of its Levys Point rendering plant will be heard by the Victorian Civil and Administrative Tribunal in April.

Mr Purcell said he expected the council to fully consider the merits of the development and the panel’s recommendation when making its decision

It is widely expected that the panel will rule in favour of Midfield, given the company’s compliance with planning and environmental guidelines.

In Parliament this week, Mr Purcell asked the state government to intervene and complete a full review of local governments across the state.

“I am reliably informed that of the 79 local governments in Victoria there are nearly 20 which may be classified as dysfunctional, with either councillors or staff not working together, or councillors not functioning effectively,” Mr Purcell said.

“In addition to those 20 councils, there are many more that are regarded as financially unsustainable.

“I would not be asking the minister to intervene if I did not see the effect that this situation is having on business confidence and jobs growth in western Victoria.

“We need to support industries such as Midfield to grow. If this company was to relocate the bulk of its work interstate it would have devastating impacts on our local economy and job network.”

Midfield recently purchased a potato storage facility at Penola from McCain Foods and has entered into a five-year lease-back agreement. The company also owns 18 rural properties of more than 8000 hectares, including an 850-hectare property at Compton, west of Mount Gambier. A spokesman for Midfield said the company would not be making any comment until after the planning panel recommendations were publicly available.

Cr Neoh also said he would not comment specifically on Midfield because the planning application was ongoing.

However, he agreed with Mr Purcell that politics should not impact on good planning decisions. “He’s got a very good point.”

“I think in terms of business investment and business confidence, the business world would expect consistency in decision making on planning issues.

“As individual councillors we have an obligation not to damage the Warrnambool brand or the city brand. We are there to protect and promote the best endeavours of the City of Warrnambool.

“Rather than allowing issues to fester within council and the community, sometimes you need to make a decision and move on.”

Local Government Minister Natalie Hutchins said the Andrews government had promised a review of the Local Government Act prior to the election.

“Councils need to balance the concerns of residents, with opportunity for local business,” Ms Hutchins said.