The uneasy relationship was revealed in this week’s meeting of Lithgow Council when deputy mayor Ray Thompson asked what was behind reports he was hearing of fractures within the organisation.

Mayor Maree Statham is concerned that BMLOT has descended into disarray, including serious financial difficulties.

She said that Blue Mountains Council had arranged for an independent auditor to prepare a report on just where the organisation had found itself in difficulties.

Council was told that the chairman of BMLOT, Randall Walker, had resigned and had been replaced by former Blue Mountains mayor Daniel Myles as both chairman and CEO.

That tenure was short lived and he too resigned two weeks ago.

Mayor Statham said there was now a new administration seeking to steer BMLOT back on course.

The new chairman is Jason Kronshaw, from Blue Mountains Buslines, and CEO is Michael Spurling, from Bilpin Springs.

Cr Statham said Lithgow Council had indicated its concerns about the situation and would not be providing any additional funding for any ‘bail out’.

She said it was her understanding that two of the biggest operators in Katoomba had ‘written off’ significant debts in a bid to assist the recovery. 

“We have also been concerned for some time at the lack of adequate support for Lithgow tourism which questions the value of our involvement,” the mayor said.

Cr Statham believes Oberon Council has the same concerns.

“We’re concerned at the situation that has developed and are waiting to see what eventuates before committing ourselves further,” she said.

The mayor said that Destination NSW had expressed concerns about the situation and is seeking some ‘please explains’ on how BMLOT lost direction.

She said the current situation ‘has been coming for some months’ and she had been ‘pessimistic’ about whether or not the right people were in charge.

“Now there are moves in place to resuscitate it,” Cr Statham said.

Council general manager Roger Bailey said Lithgow Council is ‘not exposed to BMLOT debts’.