Mayor Peter Besseling, with the unanimous support of all eight councillors, confirmed the dismissal of Port Macquarie-Hastings Council's general manager Tony Hayward at an extra ordinary council meeting called on Monday afternoon.

Cr Besseling said the termination of the general manager's contract came as a result of a performance management review which highlighted a number of 'significant performance issues' in the areas of communication, building relationships and leadership.

Cr Besseling said feedback from councillors and senior staff was consistent with the review's outcomes. He said consultation with each councillor confirmed a 'loss of trust and confidence' in the general manager which made it clear to him the situation had become untenable.

Cr Besseling said the matter had to be dealt with swiftly and decisively to avoid the damage of a drawn out process for all parties involved, including council staff and the broader community.

The mayor made it clear there were no issues of corruption or serious maladministration raised as a part of Mr Hayward's dismissal.

The dismissed general manager will receive a contract termination equivalent to 38 weeks' pay.

He added that it was this council's vision to be the best regional council in New South Wales.

"This will require a significant agenda of reform and at times difficult decisions - this is one of those times," Cr Besseling said.

"We are unanimous in the belief that a different set of skills and leadership capabilities are required to move this organisation forward to where council and the community needs it to be."

Cr Besseling said the dismissal of Mr Hayward was regrettable, but it was the right decision and in the best interests of the broader community.

The Director General for the Department of Local Government Ross Woodward has been informed of the decision along with Member for Port Macquarie Leslie Williams and Federal Member for Lyne Dr David Gillespie.

The recruitment process will commence within the next three weeks and is expected to attract applicants from across the country.

Council's director of finance and governance, Craig Swift-McNair has been appointed acting general manager in the interim.

Mr Swift McNair said it was important that senior staff and councillors work together to ensure a smooth transition and continue delivering services to the community.

The primary focus will be the preparation of the draft 2014-2015 operational plan and budget and sourcing more funding for roads and footpaths. The draft plan and budget is expected to be tabled at the March meeting of council.

TUESDAY, 10am: Mayor Peter Besseling, Councillors and Acting General Manager Craig Swift-McNair are addressing the media after last night's surprising news about General manager Tony Hayward's sacking, which was effective immediately.

The extraordinary situation means that Port Macquarie-Hastings Council has had 5 general managers and 3 administrators since 2008.

MONDAY, 6.30pm: The contract of Port Macquarie-Hastings Council’s general manager, Tony Hayward was terminated at an extraordinary meeting held on Monday afternoon.

The termination is effective immediately and has been implemented under the provisions of Section 10.3.5 of the standard contract of employment which exists between Councils and General Managers.

Mayor Peter Besseling confirmed following the meeting, that the decision was unanimous. 

“Councillors are serious in our desire to make Port Macquarie-Hastings Council the best regional Council in NSW and that is going to require a significant agenda of reform and at times difficult decisions. 

“While we have appreciated the efforts of Mr Hayward during his tenure as general manager, we are unanimous in the belief that a different set of skills and leadership capabilities are required to move this organisation to where the Council and the community need it to be,” Cr Besseling said. 

Councillors resolved to appoint Craig Swift-McNair temporarily as the Acting General Manager for a period of not more than 12 months. 

“Recruitment for this vital role will get underway as soon as possible and in the interim I have every confidence that Mr Swift-McNair can work with the councillors and staff to ensure services and functions of council are not adversely affected,” Cr Besseling said.