TWEED Shire Greens councillor Katie Milne has defiantly continued to deliberate on Leda Developments matters at the first council meeting since being found to have defamed the company's billionaire founder, Bob Ell.

At the start of Thursday's meeting Cr Milne read from a prepared statement declaring a "non-pecuniary, less than significant conflict of interest" in the Leda issues in the council's business papers due to a defamation claim being awarded against her for $15,000 on March 7.

This type of declaration means she can stay in the council chamber and vote when Leda matters are debated.

"I have sought advice from the Department of Local Government for confirmation that I can continue to vote on Leda's developments and am acting strictly in accordance with this advice," Cr Milne said.

"I will be voting only on the merits of each application.

"The court has found that my defamation was 'not malicious' and I assure the community it is immaterial to me who the developer of these lands may be.

"My only interest is to achieve standards for all developments that are appropriate to this internationally significant shire."

The defamation action in the New South Wales Supreme Court stemmed from a letter to the editor written by Cr Milne in March 2010.

At Thursday night's meeting councillors voted for a second time to defer a decision on the size of fauna culverts at a section of the Cobaki development until they could obtain more details on the ecological report provided by Leda.

The council also voted to consider appointing an arbitrator to resolve the impasse with Leda over the size of the culverts.

Mayor Barry Longland said this proposal was "a joke" as councillors should be making the decisions.