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The transport minister, Jo Haylen, said the Liberals had let voters down and she could understand why affected candidates would be disappointed.
“People deserve a choice,” she said. “The Liberal party has failed to deliver that opportunity for people across Sydney.”
Haylen, who served as Marrickville’s Labor mayor before she entered state parliament, said councils were a “pathway to state politics” for many MPs.
“There are many reasons why people within the Liberal party are very angry about what has occurred,” she said.
The NSW opposition leader on Thursday conceded the “monumental stuff-up” would damage the Liberals’ brand, including at future state and possibly federal elections.
“It’s a basic matter of competence and administration,” Speakman told reporters, adding that the state director’s position was untenable.
Speakman denied it was a sign the party had lost its way.
Other Liberals have attacked the 26-member state executive, whose troubles also caused the late selection of several candidates for the 2022 federal election.
The federal party leader, Peter Dutton, suggested there needed to be at least two resignations.
Northern Beaches, Lane Cove, Camden and Campbelltown councils are among those affected in Sydney, along with regional councils in Cessnock, Wollongong and the Blue Mountains.