Councillors voted seven to three to disband the Raymond Terrace sub-committee, leaving the Nelson Bay event as is, and called for expressions of interest from the community to form a new group.

It is an action that has left volunteer members bewildered.

"It is with absolute disbelief that the Raymond Terrace Australia Day Committee was sacked . . . without us being informed of any existing disapproval by council," committee secretary Deidre Hall wrote in a response to the Examiner.

"To have our committee so publicly vilified, especially with lies, is embarrassing and inexcusable."

Councillors Peter Kafer, Geoff Dingle and John Nell were the only councillors to vote against the move.

"The kind of motion before us is not acceptable," Cr Nell said.

"To make this thing public in advance of the council meeting . . . it is an appalling way to behave," Cr Dingle said.

But councillor Steve Tucker, who first raised the issue with the Examiner a week prior, and councillor Ken Jordan, who moved the motion from the floor, did not waver, saying the current committee was prejudiced against new members, especially current councillors, and new ideas.

"I've had a gutful . . . there are people out there that want to be a part of this [Australia Day]," Cr Jordan said.

"We should throw the cards up in the air and see where they come down."

Cr Jordan said the move had to occur now as waiting for a sustainability review would mean event preparation would already be under way. He put his hand up as the new chairman of the committee.

Ms Hall rejected the accusations.

"We've never turned away anyone interested in joining us, have never seen any other councillors at our meetings or at Riverside Park at 5am on Australia Day when we start setting up for the day," she said.

"Some of us have been on the committee for some time, but we are in constant contact with the community . . . only a couple of weeks ago we put out a community request for new members, but again without a response.

"We are a hard-working, dedicated committee and have no reason to think we've let the community down."

Long-serving committee member Moira Saunderson said the whole process was undemocratic.

The Raymond Terrace Australia Day Committee did apply for public access at the last council meeting but was denied due to the change in meeting dates. Ms Hall said the group had applied again for the next council meeting on March 26.

As part of the recommendation the council will conduct a sustainability review of civic functions, ceremonies and events and report back in June with recommendations for improvements, efficiencies and continued future operations.