Port Macquarie-Hastings Council administrator Dick Persson told a cheering gallery he would not sell council-owned land for a $110 million power plant two kilometres north of Kew.

The council’s in-principle support for the controversial project also was withdrawn.

“Having now had the chance to learn about this issue, I see no public benefit and considerable non-benefit,” Mr Persson said of the International Power Australia project.

“Under these circumstances it is not appropriate for council to facilitate the development by selling council land.”

A fortnight ago 500 angry residents converged on council’s Burrawan St chambers in protest of the diesel-fuelled power plant.

A statutory declaration from the council in November 2006 gave in-principle support for the then proposed gas turbine power station.

Last night Mr Persson said he agreed with the residents.

“I have made the decision to advise International Power Australia (IP) that council, as the land owner, is revoking the consent to sell the land to IP or any other proponent wishing to construct a peaking power station fuelled by distillate.”

The council sought legal advice to determine the implications of withdrawing its support.

It was told: “No ‘offer and acceptance’ exists between the parties in relation to the land sale” and “council may discontinue negotiations about the land sale”.

The plant, with the capacity to convert from diesel to natural gas in the future, would run at times of peak demand at a maximum of 10 per cent of the year.

The council will advise the NSW Department of Planning of its decision.

“As a good corporate citizen, council has a responsibility to the community to be as environmentally friendly as possible,” Mr Persson said.

“So if a company approached council with a proposal for an environmentally sustainable power station to directly assist local power supplies, we would look at it.”

International Power Australia considers the site would best support the power network’s future needs.

The company lodged the proposal with the NSW Planning Department in late 2006 and the community consultation phase started on April 30, 2008, when the environmental assessment report went on public exhibition.

The exhibition period has been extended to next Friday.