The site is owned by a company headed by Creswick ward councillor and self-appointed Creswick Bendigo Bank director Janine Booth, who planned to relocate her post office and open a Creswick Bendigo Bank at the rear of

the property.

Mr Castley said at the council agenda meeting on July 11 that council officers and Creswick Community Bank spokesman Bob Orr failed to mention that in Cr Booth's planning application it was stated that the purpose of the

subdivision was to establish her post office on Lot 1 and provide a site for a community bank (Bendigo Bank) on Lot 2.

"They all went to great pains not to disclose it," he said.

Mr Castley said that it wasn't until Mr Orr addressed the council objecting to the planning application that it became public knowledge.

"Cr Booth, as both a Hepburn councillor and a director of Creswick and District Financial Services Limited has both a vested interest and a serious conflict of interest in this matter and the real reason for her planning application

should have been publicly disclosed right from the start," he said.

A Bendigo Bank spokesman claimed that site negotiations were still taking place and a site for the proposed branch was yet to be confirmed.

Cr Booth said: "My total focus is the relocation of my post office. There is a shortage of sites for the Creswick community bank."

Cr Booth said she trusted her fellow councillors to view every application objectively.

Deputy mayor Bill McClenaghan said there was nothing wrong with a councillor lodging an application.

"It's irrelevant Janine Booth is a councillor. I am treating it solely and wholly on its merits," he said.

"Councillors are professional enough that they can't favour councillors."

The Creswick and District Financial Services Limited Board asked for an extension until February to repay a $12,000 interest-free loan for a feasibility study into the formation of the bank last night.

The council recommended the extension.