Cr Smith has been suspended from council for a month after failing to declare an interest in a council vote relating to his employer, Whitehaven Coal.

The Civil and Administrative Tribunal of NSW found Cr Smith had breached the code of conduct in the matter dating back to November 2012.

Cr Smith attended and voted on the application made by Whitehaven to enter into a licence arrangement with council for a proposed water monitoring bore on road reserve at Surrey Lane.

The tribunal found Cr Smith should have declared an interest in light of the fact he had been employed by Whitehaven for more than seven years.

“This case shows how simple lack of attention and lack of diligence can lead to serious consequences for a councillor and jeopardise the processes of council,” the tribunal’s report said.

Cr Smith said he had actually voted against the Whitehaven’s proposal as a matter of principle.

“I don’t regret it,” he said.

“It’s a necessary thing. You have to stick up for the town or see it go under.

“If the mine gets away with upsetting the water table without being checked or monitored, we might as well leave town.”

Cr Smith said it was a “spiteful claim” that had seen him reported to the tribunal.

He said the suspension would mean he would be absent from two council meetings, but that he would also not be allowed to attend a council education session 

advising about pecuniary interest matters that fell within his month’s suspension.

“They should be forcing me to go,” he said.

The tribunal found there were mitigating factors, including an apology from Cr Smith, and there was no evidence to suggest the “conduct was undertaken for an ulterior or improper purpose”.

Cr Smith, who is in his fifth term as a councillor, was suspended last year for a month alongside fellow councillor Hans Allgayer.

The councillors were found to have failed to declare a non-pecuniary interest in a 2009 vote on a $12.5 millon coal plant in which Whitehaven Coal had an interest.

Both appealed the suspension, but lost the appeal.