The admission came as developer Bruce Lyon pleaded with councillors on Wednesday not to “sterilise” 160 hectares of his land around Boydtown, much of which had been recommended to be given environmental zoning.

The zoning recommended for the Boydtown land follows three years of deliberation between Mr Lyon’s company, the council and the NSW Department of Planning.

Mr Lyon has submitted a separate proposal for rezoning of land surrounding the Seahorse Inn, which if successful could provide significant numbers of lots for dwellings.

In supporting Mr Lyon’s representation at the council meeting on Wednesday, Eden real estate agent Glenn Brunette spoke of the shortage of land available in the Eden area and likened the Boydtown proposal to the success of Tura Beach as a precinct of Merimbula.

Mr Brunette said without the extra land from Boydtown “we are like a supermarket not replenishing our shelves. It is hard work for a real estate agent trying to get the job done”.

In discussing the matter with councillors, planning staff member Keith Tull said a number of rezoning proposals didn’t get through the Department of Planning because it believed there was enough land in the shire.

“The raw figures indicate we have enough land supply, but we are aware of areas of land shortage,” Mr Tull said.

“Our plan is to look at precincts and at what is available…this could form a rural residential strategy,” he said.

He said the lack of strategy was a red stop sign and the cause of a lot of frustration with staff.

In discussing Mr Lyon’s contention that the E zones on his land should not go ahead, councillors agreed to give him more time to seek further advice from the department, ahead of the final meeting of the current council term on August 10.