Former NSW mining minister Ian Macdonald's own department was against him granting the controversial Doyles Creek coal exploration licence directly to a group including former union boss John Maitland, an inquiry has heard.
The department's position was made clear in a briefing note tendered today to the Independent Commission Against Corruption (ICAC) in Sydney.
"There would be major policy difficulties, potential probity issues and environmental sensitivities" involved if the licence was allocated directly rather than going through a tender process, the department advised.
"Without the support of major industry players, it is unlikely the proposal would be successful," it added.
Mr Macdonald's former chief of staff, Jamie Gibson, told the hearing the minister was "always very enthusiastic" about the proposal for the Doyle's Creek training mine in the Hunter Valley, talking up the benefits it would bring for training and the University of Newcastle.
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"He always talked about it in glowing terms," Mr Gibson said.
But the department was not in favour of a direct allocation because it would "exclude other interested industry parties".
He recalled Mr Maitland being the "key advocate" and the "face" of the proposal, but said he was not initially aware Mr Maitland was a shareholder and chairman of the company behind it.
The ICAC is probing a licence Mr Macdonald granted to Mr Maitland's entrepreneurial group in 2008.
The hearing into Doyles Creek follows months of testimony about other coal licence grants that were approved under Mr Macdonald and benefited former fellow Labor minister Eddie Obeid.
