Most notably was the realisation that of the almost $1 million ratepayers spent on a Vertical Composting Unit (VCU) in 2008, only $484,000 was for the actual unit ? $500,000 of it had been given as "goodwill" for the business.

The Southern Highlands News asked Wingecarribee Council to explain the VCU business plan that was adopted in closed council on November 7, 2007, but was instructed a Freedom Of Information request would need to be lodged.

In December, 2007, the previous council accepted a $2 million National Australia Bank loan for the Resource Recovery Centre (RRC) to make the VCU purchase from contractor Steven Moxon, and for capital works needed at the centre.

On Wednesday night, the council voted to "mothball" the VCU because it has been running at a $300,000 loss each year and is in need of $30,000 worth of repairs.

Councillor Duncan Gair seconded the November 2007 motion to consider the VCU plan in closed council, but could not recall the details surrounding the $500,000 "goodwill" or reasons why the last council adopted the plan.

He explained that before the VCU purchase the council leased land to Mr Moxon to develop a composting unit for organic materials.

"When the report came to council three or four years ago, we were given a business plan from the RRC manager (Miles Lochhead), who is no longer with us, who outlined how the VCU would work and the amount of effort that had gone into getting contracts," Cr Gair said.

"(When the report came to council) the amount was $984,000 and my understanding is that was based on the amount of effort that went into streamlining and perfecting the technique to vertical compost. I can't remember the details, but I believe the plan showed there was a profit margin to be had and the VCU would pay for itself in four to five years."

Former councillor Malcolm Murray, who motioned the business plan into closed council with Cr Gair, also couldn't remember what got the proposal over the line.

Council general manager Jason Gordon said the purchase was "before his time", but confirmed he had "never seen" $500,000 put up for "goodwill".

After 17 years, Mr Lochhead resigned as RRC manager on April 8 "to pursue career and personal opportunities".

He stood by the VCU purchase and said the hard work of all the staff involved with the RRC would be evident in two to three years.