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Heath Parkes-Hupton

Dominic Perrottet backtracks on Hills Shire Council inquiry

Dominic Perrottet was grilled on the inquiry during an interview with Ray Hadley on Friday. (AAP: Edwina Pickles )

NSW Premier Dominic Perrottet has conceded members of the Liberal Party, including his brothers, should have "the book thrown at them" if they have been involved in misconduct related to a Sydney council.

It follows a parliamentary inquiry into allegations of impropriety on the Hills Shire Council, and claims of developers seeking to influence the election of Liberal candidates.

Earlier today, Opposition leader Chris Minns said there was "no alternative" but to suspend the council, pending an inquiry by the Office of Local Government, to ensure its administration was "above board".

The premier's two brothers, Jean-Claude and Charles Perrottet, were both called as witnesses but refused to front the inquiry, sparking a search for their whereabouts.

Dominic Perrottet had previously framed the inquiry as political mud-slinging, and fended off questions about his brothers by demanding the inquiry and media "leave my family out of it". 

Jean-Claude Perrottet, left, and Charles Perrottet were called as witnesses. (Facebook: NSW Young Liberals, Charles Perrottet)

But in an interview on Nine Radio's Ray Hadley show today, the premier said the state director of the NSW Liberal Party was looking at allegations heard during the inquiry.

"I expect the highest standards from all members of the Liberal Party. That they are dealt with appropriately," he said.

"I'm aware that the state director of the Liberal Party ... that they are looking at [the allegations] as we speak.

"Anyone who has done anything wrong in relation to this ... they will have the book thrown at them."

The premier was asked if it would have been easier for him if his brothers made themselves available to give evidence instead of staying "hidden from view".

"I think that would be the case, Ray," he replied.

"And I would make this point very clearly, it doesn't matter who is involved, if people have done something wrong they wrong thing — they should have the book thrown at them."

The inquiry was sparked by local Liberal MP Ray Williams, who claimed under parliamentary privilege that members of his party were "paid significant funds" to install new councillors in the Hills.

Mr Williams alleged development company Toplace benefited from the move.

The premier said he referred Mr Williams' claims to the Independent Commission Against Commission "immediately" after they were made.

Jean-Claude and Charles Perrottet are factional figures within the Liberal Party in the Hills area.

Both men wrote letters to the inquiry saying they denied any allegations of impropriety and labelled the probe, headed by Greens upper house member Sue Higginson, a "circus".

The inquiry heard claims Jean-Claude and Liberal figure Christian Ellis unsuccessfully sought a $50,000 payment from a businessman as part of a plan to unseat local powerbroker and federal MP Alex Hawke.

Ms Higginson wrote in a report that the inquiry had been "extraordinary" not only for what it heard, but "for the gaping hole in evidence left by key witnesses who have gone to great lengths to avoid scrutiny".

The Opposition leader has called for the council to be suspended. (ABC News)

Mr Ellis and his mother, Hills councillor Virginia Ellis, were also called as witnesses but were unable to located.

Toplace director Jean Nassif told the inquiry he was in Lebanon and declined to give evidence.

Mr Minns said given the serious allegations raised during the inquiry, and the lack of answers, "there's no alternative other than to suspend the council and launch an inquiry".

"The people who live in that community must have confidence that the administration of Hills Shire Council is above board," he said.

"As it stands today, based on the evidence of Ray Williams, we can't give that assurance and I don't think the premier can either."

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